| Article 1 |
These Rules are adopted pursuant to Article 8 of the Rules Governing Securities Trading on the TPEx.
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| Article 2 |
To apply for trading of exchange-traded fund beneficial certificates on the TPEx ("TPEx trading"), the fund issuer is required to submit a formal application to the Taipei Exchange (TPEx). The TPEx will review the application in accordance with these Rules.
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| Article 3 |
"Exchange-traded funds" (ETFs) in these Rules means securities ETFs as defined in Articles 37 and 37-1 of the Regulations Governing Securities Investment Trust Funds and futures ETFs as defined in Articles 10-1 and 10-4 of the Regulations Governing Futures Trust Funds.
"Underlying index" in these Rules means the index that will be tracked, simulated, or replicated by the ETF that the is applying to have listed for trading on the TPEx.
"Issuer" in these Rules means a securities investment trust enterprise that offers a securities ETF or a futures trust enterprise that offers a futures ETF.
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| Article 4 |
For any securities ETF or futures ETF that has been approved by the competent authority for public offering and has been established, and has net asset value of NT$200 million or above, the issuer may submit an Application for TPEx Trading of ETF Beneficial Certificates (see Attachment) along with relevant documents to apply to the TPEx for TPEx trading of the offered ETF beneficial certificates.
The issuer under the preceding paragraph is required to submit a written application for a letter of consent from the TPEx for the eligibility of the benchmark index before seeking approval from the competent authority for public offering of the fund, unless the index to which the offered securities ETF or futures ETF is linked is prepared by the TPEx solely or in cooperation with another index provider. Directions for applications for a letter of consent shall be prescribed by the TPEx.
If an issuer has furnished in full the application documents required under paragraph 1 and met all TPEx listing criteria, the TPEx may notify the issuer to sign the Agreement for TPEx Trading of Beneficial Certificates and publicly announce their listing on the TPEx. Meanwhile, the TPEx will also report the listing to the competent authority for recordation.
If a domestic securities investment trust enterprise wishes to apply for TPEx trading of additional-currency beneficial certificates corresponding to its beneficial certificates that are already traded on the TPEx, and the minimum quantity of those additional-currency beneficial certificates reaches one creation/redemption unit or more and the competent authority has granted approval, it may submit an Application for TPEx Trading of Additional-Currency ETF Beneficial Certificates (see Attachment) along with relevant documents to apply to the TPEx for TPEx trading.
If a domestic securities investment trust enterprise applies together for TPEx trading of ETFs that it issues and of additional-currency beneficial certificates, those ETFs and additional-currency beneficial certificates shall respectively conform to the provisions of paragraph 1 and, mutatis mutandis, the preceding paragraph.
ETFs for which an application may be submitted for TPEx trading of additional-currency beneficial certificates under the preceding two paragraphs are limited to foreign-component-securities ETFs of which the component securities of the underlying index are all foreign securities.
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| Article 5 |
Issuers shall input the following information into the Internet information reporting system designated by the TPEx within the specified deadline:
- Before trading hours begin each day, report the net asset value per beneficial unit of the ETF as calculated on the most recent business day. However, the net asset value per beneficial unit may not be reported during a period when trading is suspended for operations for a split or reverse split.
- During trading hours, report the intra-session estimated net asset value per beneficial unit of the ETF, using the real-time market value, updated at a frequency of at least once every 15 seconds, on the Market Information System website. If the ETF holds foreign assets such as foreign securities or futures contracts, use the real-time market value or the most recent closing price between 8:30 a.m. and 5 p.m., and report the intra-session estimated net asset value per beneficial unit of that ETF at the above frequency of updating. However, the intra-session estimated net asset value per beneficial unit may not be reported during a period when trading is suspended for operations for a split or reverse split.
- Before trading hours begin on the first business day of each week, input the ETF's sector composition or asset portfolio ratio for the previous week; provided, the filing may be made before 12 noon the first business day of each week in the absence of overlaps between the trading hours of the place of listing of the ETF assets and the TPEx.
- By the 10th calendar day each month, input the names of the top 5 investment assets held by the ETF in the previous month and the ratio of the aggregate of these assets to the net asset value of the fund.
- By the 10th calendar day of each month, input comparative data on the cumulative movement of the net asset value per beneficial unit of the ETF and that of the index it tracks, up to the end of the preceding month, for the preceding 3 months, 6 months, 1 year, and from the beginning of the fiscal year, and from the time of listing on the TPEx.
- By the 10th calendar day in the first month of each quarter, input the content and ratio of the ETF investment assets for the previous quarter.
- On the fixed record date in June each year, input a table of overseas Chinese, foreign, and mainland Chinese investment and shareholding, in accordance with the filing deadlines prescribed under the filing procedures for overseas Chinese, foreign, and mainland Chinese investment and shareholdings.
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| Article 6 |
Issuers shall make the following non-periodical disclosures over the Internet information reporting system designated by the TPEx:
- For an initially listed ETF, basic fund information, and net asset value per beneficial unit, total number of beneficial units, and total net asset value as of the latest business day available prior to the listing on the TPEx, which shall be reported on the day before the listing.
- Table of overseas Chinese, foreign, and mainland Chinese investment and shareholding, which shall be input at the time of (1) the initial TPEx listing of the beneficial certificates (2) operations for split of the beneficial certificates (3) operations for reverse split of the beneficial certificates, and in accordance with the filing deadlines prescribed under the filing procedures for overseas Chinese, foreign, and mainland Chinese investment and shareholdings.
- Public announcement of matters relating to meetings of beneficial owners, which shall be reported at least 12 business days before the register of beneficial owners is closed from further changes.
- Public announcement and reporting of resolutions of the meeting of beneficial owners or other relevant matters, which shall be reported within 2 days after occurrence.
- Public announcement of the book closure date and the record date for distribution of income: at least 12 business days in advance of those dates respectively, the issuer shall input the date for the operation for distribution of income. Furthermore, the issuer shall, at least 2 business days before the ex-dividend date, input the amount of the distribution of income and information on the estimated proportional composition of the income distribution, and related warning statements.
- Changes in the number of units of ETF beneficial certificates from any creation or redemption, and the total number of issued units after the change, shall be reported on the next business day following the date when the issuer processes the creation or redemption.
- Material information that is subject to reporting pursuant to the TPEx Procedures for Verification and Disclosure of Material Information of the Securities Investment and Futures Trust Enterprises of TPEx Listed Exchange-Traded Funds shall be input by the deadlines set forth in those Procedures.
- Public announcement of operations for split or reverse split of beneficial certificates, which shall be reported on the day the application is filed with the TPEx.
- Public announcement of the number of units of beneficial certificates after a split or reverse split is conducted, which shall be reported by 4 pm on the business day before the date when TPEx trading of the new beneficial certificates begins.
When a futures trust enterprise or its fund custodian discovers that the average net asset value per unit of a futures ETF for the most recent 3 business days has fallen by a cumulative 40% or more from the initial net asset value per unit of the fund, it shall immediately report the matter to the competent authority, the National Futures Association, and the TPEx. The futures trust enterprise shall furthermore provide a concrete description of the cause.
A securities investment trust enterprise or futures trust enterprise to which any of the following circumstances applies shall report to the TPEx:
- Any circumstance specified in Article 63 or 78 of the Regulations Governing Securities Investment Trust Funds, or Article 73 or 82 of the Regulations Governing Futures Trust Funds.
- Any circumstance specified in Article 3, 4, 5, or 24 of the Regulations Governing Securities Investment Trust Enterprises or Article 8, 9, 10, or 38 of the Regulations Governing Futures Trust Enterprises.
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| Article 7 |
Any errors discovered in the reported information shall be treated according to Article 8, and the issuer shall make corrections by inputting the correct information immediately upon notification by the TPEx.
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| Article 8 |
If a TPEx listed company violates these Rules or discovers on its own after the reporting deadline that the information reported was erroneous and applies to make corrections, the TPEx may impose a penalty of NT$10,000. However, if the error or omission was discovered by the competent authority, the TPEx, or an investor and is verified upon investigation, the TPEx may impose on a case-by-case basis a penalty of NT$30,000; but if the cumulative number of penalties within the most recent year has reached two or more (inclusive of the current penalty), a penalty of NT$50,000 will be imposed as the penalty for the current instance. Meanwhile, the issuer shall furthermore be notified by letter to make supplementations or corrections within 2 business days after delivery of the letter. Failure to make supplementations or corrections by the deadline shall be subject to a further penalty of NT$10,000 for each trading day beyond the deadline until the time of supplementation or correction; in serious cases, the TPEx may make dispositions pursuant to Article 12 or 12-1 of the Rules Governing Securities Trading on the TPEx.
An issuer that fails to duly disclose material information shall additionally be subject to the treatment specified in Article 7 of the TPEx Procedures for Verification and Disclosure of Material Information of the Securities Investment and Futures Trust Enterprises of TPEx Listed Exchange-Traded Funds.
An issuer shall be held solely liable for all consequences if there is any misrepresentation or falsehood in any reported information that is disclosed to the public over the TPEx's information systems or provided in response to inquiries made by the competent authority.
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| Article 9 |
These Rules, and any amendments hereto, shall enter into force after approval by the competent authority. Additions, deletions, or revisions to attachments to these Rules shall enter into force after approval by the the TPEx President.
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