DRx (Fractional Depositary Receipt) or securities representing rights in foreign securities is an option for customers who wish to invest in foreign stocks or funds. It offers advantages over regular DRs (Depositary Receipts) in that investors can buy and sell according to the trading hours of the foreign securities market and can transact in a specific amount in the local currency or a specific number of units.
Investing in DRx is akin to investing in foreign securities through DRs, where the underlying securities that can be used as reference assets include common stocks, ETFs (Exchange-Traded Funds), REITs (Real Estate Investment Trusts), Infra Funds, and Infra Trusts, all of which are traded in foreign securities markets as specified by the SEC (Securities and Exchange Commission).
By investing in DRx, investors can allocate their funds to purchase DRx in their desired reference assets. This provides flexibility in managing investments and adjusting investment sizes according to their preferences.
Investing in DRx allows investors to benefit from foreign securities investment without the need to open foreign investment accounts and reduces complexity in trading foreign securities. It offers a convenient and flexible option for investors who wish to access foreign investment opportunities