One of the market's most attractive arbitrage opportunities remains unavailable
after the Korea Securities Depository (KSD) set a cap on converting Korea-listed
SK Hynix shares into US-traded American depositary receipts at 2.5% of total
share capital. KSD's CEO said the $26.5 bln ADR issued on July 10 has exhausted
the issuance quota. Unless existing ADR holders first convert their US ADRs back
into Korean shares to free up capacity, investors cannot convert Seoul-listed
stock into ADRs. SK Hynix declined to comment.