Regulations Governing the Issuance of Exchange Traded Notes by Securities Firms Article 2

Except where otherwise provided by laws or regulations, the issuance of Exchange Traded Notes (ETNs) shall be governed by these Regulations.The term "Exchange Traded Note (ETN)" used in these Regulations means a security, issued by a securities firm, that at maturity pays investors returns linked to the performance of the underlying index it tracks and that is traded on a securities exchange market, with investors' subscriptions and redemptions settled in cash.The underlying index referred to in the preceding paragraph shall meet the following requirements, and may not involve a new Taiwan dollar (NTD) exchange rate index:1.The index shall have been produced by a party with professional ability and experience in producing indexes.2.The index shall be representative of its defined market.3.The index's components shall be a broad sampling and liquid, provided that with the competent authority's approval broad sampling need not be required.4.Index data shall be sufficiently disclosed and easily accessible.5.There is no violation of laws or regulations in connection with the index, nor any matter that would make the index unsuitable as an underlying index.