2. Requirements applying to the Exchange Traded Products

Art. 6
Applicable law

¹ All ETPs that are subject to Swiss law are eligible for listing on SIX Swiss Exchange.

² ETPs that are subject to foreign law may be listed on SIX Swiss Exchange only if the foreign legal system in question is one recognised by the Regulatory Board. These recognised legal systems consist of those operating in OECD member states.

³ Upon application, the Regulatory Board may recognise further foreign legal systems, provided the applicant can demonstrate that the legal system in question meets international standards in respect of investor protection and transparency regulations.

Art. 7
Minimum capitalisation of issue

ETPs must have a minimum capitalisation of CHF 1 million at the time the listing application is submitted.

Art. 8
Underlying instruments

¹ Listing is restricted to ETPs that relate to an underlying instrument that is admitted by the Regulatory Board under the terms of Arts. 9 to 13, that have a price that is set regularly, and that are publicly accessible.

² The Regulatory Board may permit further underlying instruments.

Art. 9
Equity securities, bonds and collective investment schemes as underlying instruments

¹ Equity securities such as shares, participation certificates and profit-sharing certificates that are listed or admitted to trading on SIX Swiss Exchange or on a foreign securities exchange with equivalent regulation are permitted as underlying instruments for ETPs. Furthermore, bonds and collective investment schemes that are listed on SIX Swiss Exchange or on a foreign securities exchange with equivalent regulation are also permitted as underlying instruments. Such collective investment schemes must nonetheless fulfil the conditions laid down in CISA and its implementing provisions.

² Foreign securities exchanges recognised as having equivalent regulation are those that hold full membership of the Federation of European Securities Exchanges (FESE) or the World Federation of Exchanges (WFE). Further exchanges may be recognised in a ruling as having equivalent regulation. The Regulatory Board may demand that the issuer provides evidence of equivalent regulation.

See also:

• Federal Act of 23 June 2006 on Collective Investment Schemes (Collective Investment Schemes Act, CISA)

• Website of the Federation of European Securities Exchanges

• Website of the World Federation of Exchanges

Art. 10
Derivatives and futures as underlying instruments

¹ All derivatives that are listed or admitted to trading on SIX Swiss Exchange are permitted as underlying instruments for ETPs.

² Standardised options and futures contracts which are traded on an exchange with equivalent regulation are also permitted. Further exchanges may be recognised upon request. The Regulatory Board may demand that the issuer provides evidence of equivalent regulation.

Art. 11
Indices as underlying instruments

Indices are permitted as underlying instruments for ETPs, provided the issuer ensures compliance with both of the following requirements:

1. the index is composed of permitted underlying instruments, as defined in these Additional Rules;
2. the index sponsor has issued index regulations that can be viewed, free of charge, on the internet. The issuer must provide interested investors with these index regulations free of charge upon request, without demanding any proof of interest;
3. the level of the index is published openly and free of charge on the internet at regular intervals, but at least once a month. The issuer must disclose the last published index level to interested investors free of charge upon request, without demanding any proof of interest.

Art. 12
Foreign currencies, reference rates, precious metals and commodities as underlying instruments

The following reference rates are permitted as underlying instruments for ETPs:

1. freely convertible foreign currencies: the requirement that a currency must be freely convertible may be waived provided that redemptions in currencies that are not freely convertible are prohibited;
2. standard market interest and swap rates, such as the 3-month Libor or Euribor. This excludes rates fixed unofficially (e.g. in an agreement between two parties);
3. precious metals, specifically gold, silver, platinum and palladium;
4. commodities that are traded on a Regulatory Board-recognised exchange and for which spot prices are published.

Art. 13
Baskets as underlying instruments

Baskets composed of the underlyings listed in Arts. 9 to 12 are permitted as underlying instruments for ETPs.

Art. 14
Collateralisation

¹ ETPs are collateralised as follows:

1. by presenting the underlying instrument for deposit either physically or in the form of a futures contract; or
2. by means of liquid equities, participation certificates, profit-sharing certificates, collective investment schemes, bonds or commodities that are listed or admitted to trading on SIX Swiss Exchange or a foreign exchange with equivalent regulation; or
3. by means of cash balances or precious metals.

² The collateral must cover at least the outstanding amount of the ETP.

³ The assets that serve as collateral will be held in safekeeping by a third party that is independent of the issuer but appointed by it.