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 and trading value
When both principal amount and indicative value of an ETN are under KRW 5 billion, respectively, or the average daily trading value for a semiannual period is less than KRW 5 million, the ETN is designated as an administrative issue. If the above causes are 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.
Content Manager
  • ETN Market 02-3774-9373