臺灣證券交易所

Develop diverse products

As the main operator of the domestic stock market, the TWSE is dedicated to promoting various financial products and assists the government in enforcing policies. In addition to urging domestic companies to implement CSR, the TWSE also intends to expand the scale of the capital market, maintaining a sound financial environment, enhancing the competitiveness of the Taiwan market and satisfying investors' needs for diverse products.

To properly manage the financial market globalization and to satisfy investors' demand for diverse investment and trading instruments, the TWSE researched and analyzed various global market practices, developed ETNs with the FSC, TPEx, and Taiwan Securities Association. The listing and trading regulations were announced in 2018. In April 2019, the TWSE and TPEx held a joint TWSE/TPEx ETN listing ceremony and the first batch of seven ETNs was listed on the TWSE.

As of 2020, eight ETNs are listed, including two ETNs linked to the performance of American stocks, fulfilling investors' needs for overseas and diversified investment; two leveraged and inverse ETNs provide exposure to a long/short equity strategy in Apple supply chain related stocks; and four domestic ETNs linked to value stocks and popular investment themes such as 5G and electric vehicles, offering investors to have the latest investment trends.

The TWSE is planning to allow securities firms to issue index option ETNs. In the mid- to long-term, the TWSE will closely observe and analyze the development of indexed products in foreign markets and encourage the securities industry to develop diversified products to attract more investors to participate in index investing. This will stimulate trading and establish Taiwan as a more diverse and international capital market.

In response to the government's push to develop low-carbon industries and to promote green finance, TIP compiled the TIP Taiwan Market Electric Vehicles Index in April 2020, the first thematic index focused on electric automobiles in Taiwan, selecting its constituents among electric vehicle manufacturers and suppliers based on the expertise of the Automotive Research & Testing Center. Furthermore, TIP compiled the TIP Customized Taiwan Electric Vehicles Supply Chain Representatives Total Return Index upon application by the issuer on June 22, and Yuanta Securities has been authorized to issue the Yuanta Taiwan Electric Vehicles Supply Chain Representatives ETN (code: 020022).

With the rapid rollout of 5G communications in Taiwan in recent years, TIP compiled the TIP FactSet Taiwan 5G Total Return Index in March and the TIP FactSet Taiwan 5G Plus Communications Index in August upon application by the issuer to provide investors with convenient instruments to invest in Taiwan's 5G industry. The highly anticipated ETFs and ETNs linked to these indices were launched in July and December, respectively.

The current offering of indices is quite diverse, covering various benchmarks, industries, themes, and investment styles, as well as customized indices, to meet the pressing needs of issuers and investors for index investing.

For more information, please refer to section "The Way to Sustainability> Promote capital market sustainability> Results and achievements> 4. CSR index."