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Operating principles for a securities firm carrying out subscription and sellback of ETNs for its own account or on behalf of its customer:
- A securities firm carries out applications for subscription and sellback of ETNs through computer linkup on the TWSE's centralized securities exchange market trading days during the period from the issuance of ETNs to the last trading date.
- A securities firm carrying out subscription and sellback of ETNs for its own account or on behalf of its customer shall comply with the following:
- An applicant must sell back ETNs from the available balance in a single securities depository account on the business date.
- When carrying out subscription orders on behalf of its customer, a securities firm may collect in advance the subscription price and shall submit the application within the time limit prescribed by the TWSE. After the actual amount due is ascertained, the applicant should be notified for making additional payment if the pre-collected payment of the subscription price is insufficient or refund if the pre-collected payment is excessive.
- A securities firm shall open a separate segregated deposit account with its settlement bank specifically for the collection and disbursement of price and other relevant charges in association with the subscription and sellback on behalf of its customer.
- The collection and transfer of relevant securities referred to in the preceding subparagraph shall be handled via book-entry transfer; the payment collection from and disbursement to applicant shall be handled via settlement account.
- A securities firm carrying out sellback of ETNs for its own account or on behalf of its customer shall, according to the issuance plan of the ETNs, calculate its holding of the ETNs and when the total number adds up to the minimum number to apply for sellback, submit the application within the time limit prescribed by the TWSE. The TWSE will forthwith forward all the application to central securities depository (CSD) to proceed with earmarking.
- If the CSD fails to complete the earmarking for the sellback referring to in the preceding subparagraph, the application for sellback is then failed.
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