Underlying indexes of ETNs shall meet the conditions specified in Article 2 of the Issuance Regulations.
A compiler of the underlying indexes shall meet all of the following conditions:
- Has five or more years of experience in compiling indexes, and the ability to establish and review index compilation rules, and to maintain or update on a daily basis the files for the components of the index. If the compiler is a securities firm, bank, or an interested party of the securities firm, the compiler must establish a comprehensive firewall system for the index compilation rules, file maintenance, and related operations.
- Has the ability to calculate index value, or enters into contracts with market information suppliers to calculate index value.
- Has the ability to transmit the index value to make it widely known in the market, or enters into contracts with two or more market information suppliers for the transmission of the index value.