ETN tracking S. Korea-Taiwan index reaches European market

SEOUL, The exchange-traded note (ETN), which traces the joint index of South Korea and Taiwan, made its debut on a European stock market on Monday, Seoul's bourse operator said.

The ETN tracking the Korea/Taiwan IT Premier (ITP) Index was listed on the Euronext Paris, which marks the first time that the product became available in Europe, according to the Korea Exchange (KRX).

Jointly developed by the KRX and Taiwan Index Plus, which is the subsidiary of the Taiwan Stock Exchange, the ITP index consists of 33 equities -- 22 South Korean firms and 22 Taiwanese entities -- to gauge the IT competitiveness of both economies.

The ETN is a 10-year certificate that tracks Korea/Taiwan IT Premier Net Total Return Index in US dollars, and is issued by Natixis, the global financial services unit of France's second-largest banking firm, Group BPCE, according to the KRX.

"This ETN listing will bring greater cross-border opportunities for global investors, and this marks a significant milestone for South Korea and Taiwan aiming to bring mutual prosperity to their capital markets," the KRX said in a release.

Source: Yonhap News Agency

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