SEC Said Probing Firms Over Mishandling of ADRs - WSJ (BK) (C) (JPM)

November 7, 2016 12:29 PM EST

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The U.S. Securities and Exchange Commission is said to have sent subpoenas to four depositary banks as it looks into whether or not the firms have been mishandling securities in the American depositary receipts (ADRs) market.

The WSJ said that the financial institutions include BNY Mellon (NYSE: BK), Citigroup (NYSE: C), Deutsche Bank (NYSE: DB), and JPMorgan (NYSE: JPM), though the SEC may look into other institutions.

ADRs were created to help domestic investors invest in overseas companies.

One major point being looked into is "pre-release" of ADRs, where the firms release ADRs before holding the underlying securities of foreign companies.

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