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Amendments

Title：

Taiwan Stock Exchange Corporation Directions for the Recognition of the Qualifications of Issuers of Exchange-Traded Funds and Underlying Indexes  CH

Amended Date： 2023.12.29 
Categories： Primary Market > Applications
Article Content Content Search Article No. Search Amended Article Legislative History Chinese

Title： Taiwan Stock Exchange Corporation Directions for the Recognition of the Qualifications of Issuers of Exchange-Traded Funds and Underlying Indexes(2023.02.01)
Date：
Article 4     If the underlying index of the ETF for which the issuer is applying for listing is not compiled by the TWSE or Taiwan Index Plus Corporation, a wholly owned company of the TWSE solely, or jointly with other institutions, the issuer shall, pursuant to Article 23, paragraph 3 of the TWSE Rules Governing Review of Securities Listings, before applying to the competent authority for or filing with the competent authority the offering of the fund, fill out the application form in the appendix and, after paying an application review fee, apply to the TWSE for a letter of consent by submitting the application with the following documents attached:
  1. Photocopy of the index license agreement or letter of intent entered into with the index compiler.
  2. Relevant written documents proving that the index compiler complies with Article 3, paragraph 2.
  3. Relevant written documents proving that the components of the underlying index comply with Article 3, paragraph 3.
  4. Analysis of the liquidity of the components of the underlying index and related reference documents.
  5. A detailed description of the method for and basis of the calculation of the underlying index, and the principles for selecting and replacing the components of the underlying index.
  6. Historical archive of the underlying index for at least the most recent 1 year.
  7. All the channels through which domestic investors, in the future after the ETF has been listed, will be able to access information related to the index, and relevant information.
    The TWSE may request the issuer to provide relevant supplements and descriptions, depending on the circumstances.
Article 5     The TWSE shall review the documents as specified in the paragraphs of the preceding article in an application for the letter of consent, and approve the documents before issuing the letter of consent, and reply by letter to the applying issuer and notify the competent authority.
    The issuer shall apply to the competent authority for or file with the competent authority the offering ofthe ETF within six months of the date of the TWSE letter. Where there is good cause for applying prior to the expiration of the time limit for an extension, the time limit may be extended for six months, subject to the consent of the TWSE. Such extension is granted once only and shall be notified to the competent authority.
Article 6     If the underlying index of the ETF under application for listing is compiled by the TWSE or Taiwan Index Plus Corporation, a wholly owned company of the TWSE solely, or jointly with other institutions, the issuer shall submit the following documentation to the TWSE for recordation before applying to the competent authority for or filing with the competent authority the offering of the fund:
  1. Profiles of ETF managers and the product development team.
  2. Introduction of and licensing agreement with respect to the underlying index.
  3. Planning structure.
    1. Initial minimum asset scale.
    2. List of participating securities firms.
    3. Proposed ETF listing schedule.
    4. ETF product design and subscription and redemption procedures.
    5. Fund investment portfolio management (including an outline on how to track index performance in fund operation, using methods such as full replication, optimization, stratified sampling, or otherwise, and the simulated index of the fund investment).
  4. Marketing and promotion plans.
    The TWSE may, subject to the circumstances, request the issuer to provide supplementary information and explanations in connection with the documentation listed in the preceding paragraph.
    The other institutions that compile the index jointly with Taiwan Index Plus Corporation, a wholly owned company of the TWSE, as mentioned in paragraph 1, shall meet the qualification requirements in Article 3, paragraph 2.
    An issuer shall apply to the competent authority for or file with the competent authority the offering of the ETF within six months of the date of the TWSE approval letter for recordation. Where there is good cause for applying prior to the expiration of the time limit for an extension, the time limit may be extended for six months, subject to the consent of the TWSE. Such extension is granted once only and shall be notified to the competent authority.
Article 7     An issuer shall, within three business days after the Securities Investment Trust & Consulting Association of the R.O.C. (SITCA) forwards to the competent authority an application for offering an ETF or three business days before the SITCA files with the competent authority the offering of an ETF, submit to the TWSE in writing the application (filing) documents, required documents, and SITCA review opinion as listed in the Regulations Governing the Public Offering of Securities Investment Trust Funds by Securities Investment Trust Enterprises, together with a Review Form on ETF Offering Applications (Filings) by Issuers.
    In regard to a fund offering application or filing as mentioned in the preceding paragraph, the TWSE will, upon verifying that the required particulars and content of the application or filing are in order, report the TWSE’s review opinion together with the review form and other related data completed by the issuer to the competent authority in writing.
Article 8     These Directions shall take effect after having been submitted to and approved by the competent authority. Subsequent amendments thereto shall be effected in the same manner.