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Korea Exchange reaches out European Capital Market with Taiwan Stock Exchange
ETN Tracking Korea/Taiwan IT Index Listed in Euronext Paris
Korea Exchange reaches out European Capital Market with Taiwan Stock Exchange
  • By Yoon Young-sil
  • October 15, 2018, 17:53
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Korea Exchange (KRX), and Taiwan Index Plus (TIP), the wholly owned subsidiary of the Taiwan Stock Exchange (TWSE) announced the listing of the ETN tracking the Korea/Taiwan IT Premier (ITP) Index in the Euronext Paris on Oct. 15.

The ITP index, jointly developed by KRX and TIP, has already had two ETFs cross-listed in KRX and TWSE on June 11 this year. This is the third listed products for the ITP index, and the first time with product issued in the European market, making this index more compelling to investors interested in global leading IT companies from Korea and Taiwan. This ETN listing marks a significant milestone for KRX and TWSE/TIP aiming to bring mutual prosperity to the Korea and Taiwan capital markets.

The ETN is a 10-year certificate (US$5 million) that tracks Korea/Taiwan IT Premier Net Total Return Index in U.S. dollars, and it is issued by Natixis, the international corporate and investment banking, asset management, insurance and financial services arm of Groupe BPCE, the second-largest banking player in France.

The ETN listing ceremony is hosted by Euronext Paris, with important attendants including Regis Lavergne, deputy head of equity derivatives of Natixis; Chae Nam-gi, executive director of Management Strategy Division of KRX; Chang Ya-mei, vice president of Corporate Planning & Strategies Department of TWSE.

To become one of Asia’s representative benchmark indices, the ITP index is designed to combine the outstanding IT competitiveness of Korea and Taiwan as well as to capture the market advantages of Korea’s high capital gains along with Taiwan’s high dividend yield. The index selects constituents with a free float adjusted market cap of over US$2.5 billion and those having already issued single stock futures in its market. This screening criteria provides sufficient tools for hedging and strategic trading, making it a representative benchmark for regional, sector or thematic products for index investing. With all the combined advantages of the ITP index, it brings greater cross-border opportunities for global investors.