Chapter 2 - Accreditation as a Qualified Underlying Index |
| Article 4 | Before filing with the competent authority for issuance of an ETN where the underlying index of the ETN, of which it applies for listing, is not compiled by the TWSE, or by Taiwan Index Plus Corporation as wholly owned by the TWSE, either alone or with other institution, or where the ETN is an options strategy ETN under Article 2, Paragraph 2, Subparagraph 4 of the TWSE Rules Governing Trading of Exchange Traded Notes, a securities firm shall submit an application form for acceptance of qualifications of underlying indexes of ETNs, stating the particulars to be specified, and the enclosed documents to the TWSE to seek an approval letter. The TWSE will review the application in accordance with the Issuance Regulations, these Rules, the TWSE Procedures for Review of Listing of Exchange Traded Notes, and the TWSE's other applicable regulations. If the TWSE accepts the application after the review, it will issue an approval letter for accreditation as a qualified underlying index, with a copy to the competent authority.
A securities firm that is in the circumstances provided in Article 20 or 21 or is otherwise prohibited by the TWSE from applying for listing of its ETNs shall not file an application for determination of qualification of the underlying indexes of the ETNs to the TWSE during the restriction period.
The Procedures for Review of Listing of Exchange Traded Notes will be established by the TWSE and come into force after being approved by the competent authority for recordation.
|
Info |
| Article 4-1 | Before filing with the competent authority for issuance of an ETN where the underlying index of the ETN, of which it applies for listing, is compiled by the TWSE, or by Taiwan Index Plus Corporation as wholly owned by the TWSE, either alone or with other institutions, or where the ETN is not an options strategy ETN under Article 2, Paragraph 2, Subparagraph 4 of the TWSE Rules Governing Trading of Exchange Traded Notes, a securities firm shall submit, in accordance with the TWSE Procedures for Review of Listing of Exchange Traded Notes, the relevant documents to the TWSE for recordation. If the documents are in order, the TWSE will immediately issue an approval letter for recordation, with a copy to the competent authority.
The second paragraph of the preceding article applies mutatis mutandis to an application for recordation filed by a securities firm with the TWSE in accordance with the preceding paragraph.
|
Info |
| Article 5 | Underlying indexes of ETNs shall meet the conditions specified in Article 2 of the Issuance Regulations.
A compiler of the underlying indexes shall meet all of the following conditions:
- Has five or more years of experience in compiling indexes, and the ability to establish and review index compilation rules, and to maintain or update on a daily basis the files for the components of the index. If the compiler is a securities firm, bank, or an interested party of the securities firm, the compiler must establish a comprehensive firewall system for the index compilation rules, file maintenance, and related operations.
- Has the ability to calculate index value, or enters into contracts with market information suppliers to calculate index value.
- Has the ability to transmit the index value to make it widely known in the market, or enters into contracts with two or more market information suppliers for the transmission of the index value.
|
Info |
| Article 6 | The components of the underlying index shall meet all the following qualifications:
- Meet one of the following qualifications:
- Listed for trading on the TWSE exchange.
- Listed for trading on the GreTai Securities Market.
- Listed and traded on a foreign centralized securities market or over-the-counter market approved by the competent authority, and compliant with regulations regarding the types and scope of foreign securities which a securities firm may invest as determined by the competent authority.
- Listed for trading on the Taiwan Futures Exchange.
- Traded on a foreign futures exchange, or being futures trading that futures trust funds may invest as approved by the competent authority and futures-related spot commodities, and comply with the regulations governing the scope of utilization of funds by securities firm.
- Being an index whose components conform to any of the conditions in items A to E, or item G, of this subparagraph.
- Being other components approved by the competent authority.
- The components of the underlying index or the index in item F of the preceding subparagraph shall have the following properties:
- A. The components of the index shall be sufficiently dispersed. Indexes composed of securities shall contain more than 10 component securities, with the component of the highest weighted percentage accounting for not more than 30% of the index.
- B. The components of the index shall have a certain degree of liquidity.
The above properties do not apply to an underlying index in the preceding paragraph approved by the competent authority to be not dispersed in accordance with Article 2 of the Issuance Regulations.
|
Info |
| Article 7 | Within three months of being notified by the TWSE in writing of issue of the approval letter for accreditation as a qualified underlying index or approval letter for recordation, the securities firm shall report its issuance of ETNs to the competent authority. Failure to apply for issuance within the above time will invalidate its approval letter for accreditation as a qualified underlying index or approval letter for recordation, except where a request for extension with a legitimate reason is made, in which case the TWSE may agree to extend the deadline for three months which will be a one-time only extension.
|
|