The Tokyo Stock Exchange will authorize exchange-traded notes in April, the bourse’s President Atsushi Saito told reporters today.
ETNs will be limited to those structured as Japanese depositary receipts, he said. The exchange is currently promoting the ETNs, and plans to list the first one in May, Saito said.
Exchange-traded notes are unsecured bank debt the value of which is tied to the performance of an index. They are backed only by their issuer’s credit, unlike exchange-traded funds, which hold assets.
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