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A customer engaging a securities firm for the first time to carry out subscription or sellback of leveraged or inverse ETNs and options strategy ETNs shall meet one of the following conditions:
- Having opened a margin account.
- Having had at least 10 trading orders for purchasing or selling call (put) warrants executed within the past one year.
- Having had at least 10 trading orders for purchasing or selling futures trading contracts listed on the Taiwan Futures Exchange executed within the past one year.
- Having trading record for purchasing leveraged or inverse ETNs or options strategy ETNs.
The customer may submit its request to the securities firm by correspondence or electronic means that is sufficient to verify the identity and confirm the expression of intent of the customer.
A person who has obtained leveraged or inverse ETNs or futures and options strategy ETNs by inheritance, gift, final and conclusive court judgment, or other cause reported to and approved by the TWSE may, after submitting documentary proof, sell back such securities without being subject to the application of paragraph 1.
Paragraph 1 does not apply to professional investors prescribed in the Regulations Governing Offshore Structured Products, privately placed securities investment trust funds managed by securities investment trust enterprises, futures trust funds offered by futures trust enterprises to persons with prescribed qualifications, discretionary investment accounts managed by securities investment trust enterprises, securities investment consulting enterprises or securities brokers concurrently operating securities investment consulting business, or discretionary investment accounts managed by managed future enterprises.
If a customer engages in abnormal tradings for the purpose of meeting the conditions set out in the first paragraph, the securities firm shall assess whether the customer has substantial experience in tradings set out in the first paragraph and may refuse to accept orders for subscription or sellback if necessary.
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