- Delisting
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The KRX delists an ETN even before the maturity when it falls under any of the following cases:
- When the issuer is disqualified
- An issuer is disqualified when the normal business cannot be duly conducted due to the revocation or suspension of the business license for trading of securities or over-the-counter derivatives products
- When the underlying index is disqualified
- An ETN is delisted when the price of underlying assets or index cannot be calculated or available, and the calculation method of the index is changed.
- Inability to provide liquidity
- When an issuing company cannot provide liquidity or the contracted liquidity provider (LP) does not exist any longer, it is considered to be unable to provide liquidity if the issuing company does not make a new contract with another LP within one month, or the issuer does not submit a liquidity provision plan by itself.
- Insufficient listing amount
- When both principal amount and indicative value of an ETN are under KRW 5 billion, respectively, the ETN is designated as an administrative issue. If the above cause is not resolved by the end of the next semiannual period, then the ETN is delisted.
- Breach of reporting obligations
- The issuer of an ETN is obligated to make a report on the material information to KRX for investors’ reference pursuant to the relevant regulations. Nonetheless, if an issuer fails to submit such reports intentionally due to gross negligence, or habitually, the ETN is delisted.
- Early liquidation
- Early liquidation shall be performed for any of the reasons for early liquidation stipulated in the investment prospectus (including the preliminary investment prospectus and brief investment prospectus).