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Concept
Cross listing
Summary
Cross-listing (or multi-listing, or interlisting) of shares is when a firm lists its equity shares on one or more foreign stock exchange in addition to its domestic exchange. To be cross-listed, a company must thus comply with the requirements of all the stock exchanges in which it is listed, such as filing.
Cross-listing should not be confused with other methods that allow a company's stock to be traded in two different exchanges, such as:
Dual listed companies, where two distinct companies (with separate stocks listed on different exchanges) function as one company.
Depositary receipts, which are only a representation of the stock, issued by a third-party bank rather than by the company itself. However, in practice the two terms are often used interchangeably.
Admitted for trading, where a foreign share is accessible in a different market through an exchange convention and not actually registered within that different market.
Generally such a company's primary listing is on a stock exchange in its country of incorporation, and its secondary listing(s) is/are on an exchange in another country. Cross-listing is especially common for companies that started out in a small market but grew into a larger market. For example, numerous large non-U.S. companies are listed on the New York Stock Exchange or NASDAQ as well as on their respective national exchanges such as BlackBerry, Enbridge, Equinor, Ericsson, Nokia, Toyota and Sony.
Depository Receipts (DR) are instruments derived from another underlying instrument while Multi-listed instruments represent the actual stock of a company. DR are convertible back to ordinary shares, following a process dependent upon the sponsoring facility that created the instrument. Ownership of a DR does not convey the same rights as a direct holder of equity shares, but in most cases the DR is convertible back into the original instrument through a process of conversion. The DR receive a different ISIN number, recognizing that they are not the same fungible instrument as the underlying stock.
Official source
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