In the Collaborative Bond and Money Market Data Model, the Depositary Receipt classification appears in the Security Type field, with the attribute Stock or Bond.

A depositary receipt is a transferable security issued by a depositary that evidences a beneficial, often fractional, interest in an underlying share or other security held by the depositary. The receipt passes to its holder the economic rights attached to the underlying instrument, including distributions, redemption proceeds, and liquidation preferences. It may also convey voting rights where such rights exist.

Definition when classified as Stock

For CMDportal classification purposes, a depositary receipt is treated as Stock only where the underlying instrument is genuinely perpetual equity: it has no contractual maturity, no issuer redemption or call right, and carries normal shareholder voting rights.

Definition when classified as Bond

A depositary receipt is treated as a Bond where the underlying instrument is perpetual but callable or redeemable at the issuer’s discretion, whether on a scheduled first-call date, following a regulatory-capital event, or for another specified issuer-option reason, and where holders do not have normal shareholder voting rights.

Limited statutory or class-protection voting rights, such as rights triggered by missed dividends or changes that are adverse to the class, do not constitute normal shareholder voting rights for this purpose.

Accordingly, callable, non-voting preferred depositary receipts are classified in CMDportal as:

• Security Type = Bond

• Callable = European, Bermudan etc.

• Ranking = Subordinated

This is a CMDportal economic and instrument-data classification. It may differ from the instrument’s formal legal classification as preferred stock or equity.

In bank-capital transactions, depositary receipts are commonly issued in denominations suitable for institutional or retail investors and may represent fractional interests in a high-denomination preferred share. In such cases, their legal form is equity or preferred stock, but their economic characteristics may resemble those of a perpetual subordinated debt instrument. The applicable ranking attributes should therefore be recorded to reflect those characteristics.