|
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 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 10
|
When applying for listing of ETNs to be issued, a securities firm shall submit an issuance plan which shall including the following information:
- Name of the ETNs.
- Issue date.
- Issue period, indicating the maturity date.
- Number of units in the valid issue. For issuance of additional units, the number of units in the previous issue, each of all prior issues, and this additional issue shall be specified.
- Issue price, including unit price, minimum trading units, and other trading information.
- Description of underlying indexes, including how indexes are compiled and calculated. For compilation of price indexes, how dividends will be distributed for the ETNs or how indicative value is adjusted upon distribution of dividends for component securities shall be described.
- Date on which repayment upon maturity and interim distribution of proceeds will take place and how it will happen. In the case of repayment upon maturity, information shall cover how repayment is made upon maturity, repayment schedule, and procedure for delisting, and specify the value of repayment shall be calculated based on the indicative value published after market on the last trading day, the last trading day shall be the second business day prior to the maturity day, the delisting day shall be the next business day after the maturity day, and other related information.
- Description of investor's fees, including details of service fees charged by securities firm, and how the fees are calculated and collected.
- How the estimated indicative value and after-market indicative value are calculated.
- How ETNs are issued. The information shall state whether underwriting or selling the ETNs by itself. In case of underwriting, how underwriting will proceed shall be specified.
- Which exchange where the ETNs will be listed.
- Purpose of funds.
- Hedging strategies.
- Risk management measures.
- Investor's risk.
- How investors create and sell back ETNs to securities exchange market and the procedure. The information shall cover at least the statement that the sellback price shall be the indicative value published after market on the date of request, minimum sellback units, and schedule for distribution of funds and securities.
- Conditions on which the securities firm exercises early redemption (or mandatory redemption), suspends or resume subscription and stop subscription, and notification method. The information shall state that the last trading day is the next business day after the date when the conditions of early redemption (or mandatory redemption) are met, value of redemption is calculated based on the indicative value published after market on the last trading day, repayment schedule, and other related information.
- Procedure for withdrawal or revocation of validity of application by the competent authority, delisting procedure and actions to be taken. The information shall cover conditions of delisting, and the statement that the last trading day is the next business day of the day when the delisting conditions are met, and the value of repayment is calculated based on the indicative value published after market on the last trading day, in the event the compiler of the underlying indexes announces to stop compile the indexes, or terminate the index license agreement, the securities firm shall prepare a repayment plan and letter to be submitted to the TWSE, and other related information.
- The securities underwriter, if applicable, and liquidity provider and their obligations and responsibilities.
- ETNs shall be delivered through the book-entry system in accordance with Article 8 of the Securities and Exchange Act, and no physical securities will be printed.
- Other required information.
|
Info
|