Online trading company eToro has issued a notice to those traders who have positions in $Ryanair shares.
Following a decision made by Ryanair Holdings PLC to limit the number of ordinary shares held by non-EU nationals, certain actions must be taken on the accounts of traders with positions in Ryanair. eToro says that this is due to the fact that the change/decision has impacted the ability of its liquidity providers to provide it with $Ryanair shares.
Below is the full notice:
ATTENTION TO $Ryanair (Ryanair) HOLDERS
Following a decision made by Ryanair Holdings PLC ($Ryanair) to limit the number of ordinary shares held by non-EU nationals, certain actions must be taken on your accounts. This is due to the fact that the change/decision has impacted the ability of our liquidity providers to provide us with $Ryanair shares.
As soon as we were notified by our liquidity providers we worked to find a solution that would cause the least disruption to our users.
In order for you to be able to continue investing in this company, any $Ryanair position that is kept open past the end of the working day on Tuesday, July 20, 2021, will be replaced by us with the ADR for the Ryanair Holdings plc ($RYAAY (Ryanair Holdings plc)).
The new $RYAAY positions will have the same value as your original $Ryanair holdings. The restrictions on non-European ownership do not apply to ADRs.
An American depositary receipt (ADR) is a negotiable certificate issued by a U.S. depositary bank representing a specified number of shares – often but not necessarily one share – of a foreign company’s stock. The ADR trades on U.S. stock markets as any domestic shares would.
Important to note: This conversion will be done automatically and does not require any action on your part. This also ONLY applies to users holding the underlying asset.
If you do not wish to have your $Ryanair position converted to the ADR, you may choose to close the positions yourself and have the invested amount, as well as any profit or loss, returned to your account balance.
Thank you for your understanding.
The eToro Team