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| Listing Criteria |
- The Exchange requires the investment trust management company
which is a management company of ETFs to be a member of The Investment
Trusts Association, Japan that is a self-regulatory organization
to guide its members to obey the law. Such a requirement is for
the purpose of increasing reliability toward ETFs.
- The Exchange requires the investment trust management company
to promise that trust assets of ETFs consist of underlying stocks
whose value is 95% or more of market capitalization of underlying
stocks. Such a requirement is for the purpose of ensuring close
correlation between net asset value of ETFs and stock price index.
The OSE determined the above figure of "95%", making allowance
for a few stock price indices and practical business affairs.
However, as for ETFs related to simple arithmetical stock price
average such as Nikkei 225, it is another requirement that the
trust assets consist of 100% of underlying stocks.
- It is the obligation that there are 2 or more designated participants
in ETFs. The designated participants mean institutional investors
which are regarded, by the investment trust management company,
to have high reliability in settlement.
- It is required that number of beneficiaries is expected to be
1,000 or more by the listing date or within 1 year from the listing
day. To be concrete, "Documents regarding Public Offering or Sales
before Listing" or document regarding expectation of beneficiaries
after the listing date is required to be submitted to the Exchange.
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| Disclosure Criteria |
- ETFs is based on the close correlation between net
asset value of ETFs and stock price index. Therefore, it is required
to disclose how close the correlation is. To be concrete, document
about "price divergence" is required to be submitted to the Exchange.
- Change in designated participants, if any, is required
to be disclosed on the ground that such a change is directly related
to the Delisting Criteria.
- Disclosure about the termination of calculating
stock price index.
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| Delisting Criteria |
- In case the investment trust management company,
the issuer of ETFs, can not continue to operate the management
of investment trust, nor be the member of The Investment Trusts
Association, Japan.
However, in case another investment trust management company succeeds
to the management of the ETFs from the above investment trust
management company, there is a possibility that the delisting
criteria does not apply.
- In case the number of designated participants is
less than 2.
- In case the number of beneficiaries (investors)
is less than 500, and the number does not reach 500 or more within
a year.
- In case the correlation between net asset
value of ETFs and stock price index becomes extremely worse. To
be concrete, the correlation coefficient between net asset value
of ETFs and stock price index is less than 0.9, and does not reach
0.9 or more within a year.
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| Trading System, etc. |
- ETFs is traded in the same way as ordinary stock transactions at OSE. Minimum fluctuation, daily price limit, etc. set by the Exchange shall apply.
- Margin and Loan Transactions are available.
- Settlement on T+3 basis or same day settlement.
- The investor who holds ETFs at the last day of the calculation period (fiscal year) may receive distribution. However, there is possibility that amount of distribution is 0 yen.
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About ETF 
