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Article NO. Content

Title:

Procedures for Review of Listing of Exchange Traded Notes  CH

Announced Date: 2018.09.10 
Categories: Primary Market > Review
Article 4     When accepting an application for acceptance of qualifications of underlying indexes of ETNs, the TWSE will not have its responsible staff to proceed to review the application form and enclosed documents until the applicant company has paid the examination fee of NT$100,000 to the TWSE. Below is the information about the review procedure, key issues for review, index qualification acceptance meeting, and deadline to complete the review.
  1. Check documents submitted against the list of enclosures to the application form to see if all listed documents have been provided, and complete the "Inspection list to application form for acceptance of qualifications of underlying indexes of ETNs" (Schedule 1). If it is found not all documents are submitted, specify a certain period of time for submitting the missing documents. If the applicant fails to provide the requested documents, the TWSE may reject its application and notify the competent authority of the rejection.
  2. Key issues to be examined during document reviews:
    1. If the underlying indexes meet the conditions specified in Article 2 of the Regulations Governing the Issuance of Exchange Traded Notes by Securities Firms (the "Issuance Regulations").
    2. If the securities firm meets the requirements under Article 4, paragraph 2 of the Review Rules.
    3. If the index compiler meets the qualification requirements under Article 5 of the Review Rules.
    4. If components of indexes meet the required qualifications under Article 6 of the Review Rules.
    5. If components of indexes lack liquidity, whether the explanation is justifiable.
    6. Is the index licensing agreement is complete.
    7. If the securities firm has prepared its explanation in consistent with the Explanation to acceptance of qualifications of underlying indexes of ETNs (Schedule 2).
    8. Others.
  3. Index qualification review meeting: Prior to the meeting, the responsible staff shall prepare a proposal, write down the review opinion, and request to convene an index qualification acceptance meeting. After the review meeting, the staff shall prepare the meeting minutes for approval.
  4. After accepting the application for acceptance of qualifications of underlying indexes, the responsible staff of the TWSE shall within 12 business days check the particulars and information contained in the application form and enclosed documents are complete, and complete the "Inspection list to application for acceptance of qualifications of underlying indexes of ETNs" (Schedule 3), and convene an index qualification review meeting. If it is found the particulars or information are incomplete, the applicant shall be asked to provide the requested information within a specified period of time. If it fails to provide the requested information by the deadline or the additional information provided fails to meet the requirements, its application will be rejected and the competent authority will be notified of the rejection. In a special circumstance, however, where a securities firm needs to provide an additional explanation or submit other documents, the review period may be extended, subject to approval.
    If the request for an approval letter of qualifications of underlying indexes is approved as resolved at an index qualification review meeting, the TWSE will issue an approval letter and the competent authority will be notified of the approval. If the request is rejected upon resolution, the application will be dismissed and the competent authority will be notified of the dismissal.