Telefónica to delist its NYSE-traded ADSs, citing costs and administrative burden

Spain’s telecom giant Telefónica says it plans to voluntarily delist its American Depositary Shares from the NYSE, citing the ongoing administrative burden and costs of keeping securities listed in the US. The company doesn’t plan to move the ADSs to another US exchange. Instead, ADS holders can swap into ordinary shares listed in Spain, and Telefónica has also signalled a shift to a Level 1 ADR structure that would facilitate US over-the-counter trading rather than an exchange listing. The company expects the delisting to become effective 10 days after it files the relevant Form 25 paperwork.

Why traders care (even if you don’t own $TEF)

Liquidity shock: when a stock leaves a major exchange, spreads can widen and volumes can fall, wh ...