Trading in foreign stocks soared in the over-the-counter market last year. The total value of American Depository Receipts and foreign ordinaries hit $189 billion in 2011, according to OTC Markets, which services the over-the-counter market with quotation and market data technology. That’s up from $102 billion in 2010. Behind the surge were market makers and “cross-border” traders, according to the vendor.
Foreign ordinaries, which are actual shares of foreign companies, accounted for most of that volume in 2011, with about $120 billion traded. ADRs accounted for the rest. Most ordinaries are Canadian companies. (Dollar volume grew about 6 percent on the Toronto Stock Exchange in 2011.) Trading in foreign stocks has grown to represent the vast majority of the total dollar value traded over-the-counter. The securities accounted for 80 percent of the total $229 billion traded last year, according to OTC Markets. They accounted for 71 percent of the $144 billion traded in 2010.
