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Article 5-1
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Where a securities investment trust ETF or active ETF that it issues conforms to the following circumstances, a SITE may, upon obtaining a resolution from its board of directors, complete a “Suspension of Trading Application” and submit the same along with relevant documents to the TWSE to apply for suspension of trading of the beneficial certificates of the aforementioned ETF and the additionally listed ETFs or active ETFs of the first-mentioned ETF on the centralized trading market during periods when the overseas market on which the component securities of said fund circulate or the exchange market of the investment object concerned is closed:
- where the overseas market on which the component securities of said fund circulate or the exchange market of the investment object concerned is closed but the centralized trading market continues trading for five consecutive business days (inclusive) or more.
- where the fund’s net asset value on the most recent business day as obtainable by calculation is less than or equal to NT$3 billion; or where the premium/discount rate for the two business days prior to the application date is equal to or exceeds three percent (inclusive) on both days.
The application under the preceding paragraph shall be submitted by the SITE at least four business days prior to the closure of the overseas market on which the component securities of said fund circulate or the exchange market of the investment object concerned.
The term “overseas market on which the component securities of said fund circulate or the exchange market of the investment object concerned” in paragraph 1, subparagraph 1 refers to a market where the securities or investment objects in which the fund invests account for 60 percent (inclusive) or more of the fund’s net asset value.
The term “premium/discount rate” in paragraph 1, subparagraph 2 refers to the ratio of the difference between the closing price per unit of beneficial interest of the ETF or active ETF on a given day, and the net asset value settled per unit of beneficial interest on the same day as reported after market close in accordance with Article 3, paragraph 5, subparagraph 2 of the TWSE Rules Governing Information Filing by Companies with TWSE Listed Securities and Offshore Fund Institutions with TWSE Listed Offshore Exchange-Traded Funds, to the above-mentioned net asset value per unit of beneficial interest.
If the SITE makes an application in accordance with paragraphs 1 and 2 and meets the requirements for suspension of trading, the TWSE may announce the suspension of trading of the beneficial certificates of the ETF concerned and the additionally listed ETFs or active ETFs thereof on the centralized trading market.
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Article 14
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If on a same day the amount of component securities portfolio of the underlying index of a securities investment trust ETF with domestic component securities and an active ETF with domestic component securities purchased by a securities firm for its own account or on behalf of a single account, or the total amount of the aforementioned purchased securities plus that securities firm's original holdings and borrowings thereof and the amount of securities it purchased or acquired through in-kind redemption on the preceding day, meets the requirements for in-kind creation of that ETF beneficial certificate, and on that same day it sells the same quantity of that beneficial certificate; or if on a same day the amount of beneficial certificates of a securities investment trust ETF with domestic component securities or beneficial certificates of an active ETF with domestic component securities that a securities firm purchases for its own account or on behalf of a single account, or the total amount of the aforementioned purchased certificates plus that securities firm's original holdings and borrowings thereof and beneficial certificates it purchased or acquired through in-kind creation on the preceding day, meets the requirements for in-kind redemption of the component securities portfolio of the underlying index of that ETF, and on that same day it sells the same quantity of those component securities portfolio of the underlying index of the ETF; then that securities firm's settlement, and subsequent related matters, shall be conducted according to the following provisions:
- On the transaction date, the securities firm, via computer link, shall report to the TWSE and submit an application to postpone settlement.
- If the securities firm reports the sale of beneficial certificates or beneficial certificates of an active ETF with domestic component securities, or component securities portfolio of the underlying index, of a securities investment trust ETF with domestic component securities, and applies for postponing settlement pursuant to the preceding subparagraph, after the TWSE has reviewed and approved the application it shall prepare a statement and transmit an electronic file thereof to the central securities depository to conduct the relevant operations accordingly. The provisions of Article 109 of the TWSE Operating Rules do not apply to the aforementioned operations.
- After the securities firm has completed settlement on the second business day after the transaction date for the component securities portfolio of the underlying index, or beneficial certificates, of a securities investment trust ETF with domestic component securities or beneficial certificates of an active ETF with domestic component securities that it has purchased, and for any price payable for other purchases, the component portfolio securities or beneficial certificates receivable by it shall be transferred to serve as collateral for the postponed settlement, and the TWSE will notify the central securities depository to thereupon apply to the SITE for the in-kind creation of that beneficial certificate, or in-kind redemption of the component securities portfolio of the underlying index of the fund to unwind the position.
- If the component securities portfolio of the underlying index of a securities investment trust ETF with domestic component securities or beneficial certificates of an active ETF with domestic component securities listed for trading on the GreTai Securities Market (GTSM) includes exchange-listed securities, after the TWSE receives notification from the GTSM regarding the portion of listed securities sold by the securities firm, the TWSE shall prepare a statement for that portion and transmit an electronic file thereof to the central securities depository pursuant to subparagraph 2.
When a securities firm conducts the subscription operations for beneficial certificates of domestic component securities ETF and beneficial certificates of active ETF with domestic component securities, for its own account or on behalf of its customers, after confirmation has been given by the investment trust enterprise, the beneficial certificates may be sold from the date of subscription. For beneficial certificates of ETF with foreign component securities and beneficial certificates of active ETF with foreign component securities, after confirmation has been given by the investment trust enterprise, the beneficial certificates may be sold from the business day preceding the day when they are registered with the central securities depository.
When a securities firm conducts creation for beneficial certificates of leveraged and inverse index equity securities investment trust funds, and the component securities of the underlying index are all domestic securities, after confirmation has been given by the SITE, the beneficial certificates may be sold on the day of subscription. If the component securities of the underlying index contain one or more foreign securities, after confirmation has been given by the SITE, the beneficial certificates may be sold on the business day before they are registered with the central securities depository
When a securities firm conducts creation of future trust ETF and leveraged and inverse ETF futures trust fund beneficial certificates for its own account or on behalf of its customers and their components of the underlying index are all domestic futures contracts, after confirmation has been given by the futures trust enterprise, the beneficial certificates may be sold on the business day following the creation. If their components of the underlying index contain one or more foreign futures contracts, after confirmation has been given by the futures trust enterprise, the beneficial certificates may be sold on the business day before they are registered with the central securities depository.
When a securities firm carries out creation of ETF beneficial certificates for an offshore exchange-traded fund for its own account or on behalf of its customers, those ETF beneficial certificates may, subject to confirmation of the participating securities firm, be sold on the second business day after the creation.
When ETF securities investment trust fund beneficial certificates, active ETF beneficial certificates, ETF futures trust fund beneficial certificates, leveraged and reverse ETF securities investment trust fund beneficial certificates, leveraged and reverse ETF futures trust fund beneficial certificates, and offshore ETF beneficial certificates are listed as alerted securities subject to advance collection of funds and securities, the sales timing of the positions for which the securities firm conducts creation for its own account (including liquidity providers) or on behalf of its customers is governed by paragraphs 2 to 5 mutatis mutandis.
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