CIBC Launches German CDR Suite to Bring European Stocks to Canadian Investors
CIBC launches German CDR Suite, offering Canadian investors affordable, currency-hedged access to iconic German companies.
CIBC, one of North America’s leading financial institutions, has announced the launch of its German CDR Suite, featuring five new Canadian Depositary Receipts (CDRs): ALZ, BMW, BENZ, SAPS, and SMNS. Scheduled to debut on the Cboe Canada exchange on January 31, 2025, these CDRs mark CIBC’s first foray into the European market, offering Canadian investors affordable and accessible exposure to some of Germany’s largest and most renowned companies.
How This Suite Works
Canadian Depositary Receipts (CDRs) are a unique solution designed to simplify global investing for Canadians. Each CDR represents a fraction of a globally listed stock, providing access to high-priced international equities at a more affordable price. The German CDR Suite focuses on five leading German companies, including Allianz, BMW, Mercedes-Benz, SAP, and Siemens.
What sets CDRs apart is their built-in notional currency hedge, which minimizes the impact of exchange rate fluctuations for Canadian investors. This innovative structure eliminates the currency risk typically associated with global investing, allowing investors to focus solely on the performance of the underlying stocks.
Christian Exshaw, Deputy Head, Capital Markets at CIBC, emphasized the value of CDRs: “Since inception, our industry-leading Canadian Depositary Receipts have helped investors gain exposure to global companies while managing currency risk. CIBC’s expansion into the European market is a first step in rapid global expansion, furthering accessibility for retail investors while continuing our innovative, market-based solutions that address investor demand.”
Why Investors Should Consider the German CDR Suite
The launch of CIBC’s German CDR Suite represents a major step in democratizing access to Europe’s largest and most iconic companies for Canadian investors. By leveraging CDRs, investors can gain exposure to these international giants in Canadian dollars, simplifying the investment process and mitigating currency risk.
Additionally, CDRs are offered at a fraction of the price of the underlying shares, making them a cost-effective alternative to directly purchasing international stocks. This opens the door for a broader range of Canadian investors to diversify their portfolios with world-class German equities.
Rob Marrocco, Global Head of ETF Listings at Cboe Global Markets, highlighted the strategic importance of this expansion: “Given the success and popularity of CDRs, expanding into markets beyond the U.S. is a natural evolution for the CDR program. CDRs have become a preferred choice for Canadian investors to access some of the largest companies in America, and this build-out to markets overseas opens a literal world of new possibilities. We are thrilled to partner with CIBC on this innovation and to support the growth of CDRs with the global reach and local expertise that only Cboe, the Exchange for the World Stage, can provide.”
CDR Market Growth and Statistics
The popularity of CDRs has surged among Canadian investors, as evidenced by recent trading data. According to Cboe Canada, total daily trading volumes for CDRs have grown significantly, from roughly 17 million in late 2021 to an average of 120 million as of January 2024. Individual daily client trades have more than tripled over the same period, growing from about 5,000 to routinely topping 18,000.
In 2024, CDR trading volumes more than doubled, with daily average volumes reaching 244 million in the final three months of the year. Additionally, CIBC’s total CDR assets under management have more than doubled over the past year, from $3.2 billion in January 2024 to $8.3 billion as of January 24, 2025.
Christian Exshaw also noted the growing demand for CDRs: “The strong growth in trading volumes and assets under management reflects the increasing confidence Canadian investors have in CDRs as a tool for global diversification. With the launch of the German CDR Suite, we are excited to offer even more opportunities for investors to access international markets in a cost-effective and currency-hedged manner.”
About the Issuer
CIBC is a leading North American financial institution, serving 14 million clients globally across personal, business, commercial banking, wealth management, and capital markets. With a robust digital banking network and a presence in Canada, the United States, and other regions worldwide, CIBC consistently delivers innovative financial solutions tailored to the evolving needs of its clients.
The launch of the German CDR Suite highlights CIBC’s dedication to empowering Canadian investors with greater access and transparency in international markets. As the first step into the European market, these listings pave the way for future opportunities, reinforcing CIBC’s role as a trusted partner in global investing.
For more information, visit the CIBC CDR website.
Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.
The information provided is for general education and information purposes only. No statement provided should be construed as a recommendation to buy or sell a security, future, financial instrument, investment fund, or other investment product (collectively, a “financial product”), or to provide investment advice. Past performance of an index or financial product is not indicative of future results.
