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Standards for Granting of Financial Incentives
- The TWSE has set aside NT$ 20 million as financial incentives to ETF beneficiary certificates liquidity providers.
- A liquidity provider may only receive financial incentives if it meets the performance standards in Paragraph I-1 and satisfies the following conditions:
- ETF beneficiary certificates have been listed for at least a month.
- For every three months (as one period), if the average daily total asset value of the ETF beneficiary certificates reaches NT$ 10 billion or more for the period, the average daily trading volume for each month must be 2,500 trade units or more, or if the average daily total asset value of the ETF beneficiary certificates is less than NT$ 10 billion, the average daily trading volume for each month must be 100 trade units or more.
- If after an offset of daily purchase and sale of the ETF beneficiary certificates the liquidity provider still has sell orders for the current period, the number of securities borrowed for settlement in accordance with Article 109 of the Operating Rules of the Taiwan Stock Exchange Corporation does not exceed the number of beneficiary units per subscription unit of the ETF beneficiary certificates.
- For each period, liquidity providers for all the ETF beneficiary certificates will be ranked based on the average daily total buying and trading volumes for each type of ETF beneficiary certificates for which they are responsible for providing liquidity and granted financial incentives. In the case where the average daily total asset value of the ETF beneficiary certificates reaches NT$ 10 billion or more, the first place provider will receive NT$ 700,000, the second place provider NT$ 500,000, the third place provider NT$ 300,000, and the fourth place provider NT$ 200,000. If the average daily total asset value of the ETFs for the current period is less than NT$ 10 billion, the first place provider will receive NT$ 700,000, the second place provider NT$ 500,000, the third place provider NT$ 300,000, and the fourth to 12th place providers each NT$ 200,000. Notwithstanding the above, the amount of financial incentives granted to a winner shall be the amount equivalent to the securities transaction tax on the sale of the ETF beneficiary certificates for the current term or the above financial incentives, whichever is lower.
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