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IFR 6.13.1

(1) A Fund is an Islamic Exchange Traded Fund or Islamic ETF if it:

(a) is constituted as an Open-ended Public Fund;
(b) has its Units available for trading throughout the day on an exchange that meets the criteria in (2);
(c) has at least one market maker (Authorised Participant) who:
(i) purchases and redeems 'creation Units' of the Fund from the Fund Manager; and
(ii) is prepared to buy and sell Units of the Fund throughout the day on the relevant exchange; and
(d) meets the Shari'a related requirements in this chapter.

(2) An exchange meets the requirement in (1)(b) if it is:

(a) operated by an Authorised Market Institution;
(b) regulated by a Financial Services Regulator in a jurisdiction that is a signatory to the IOSCO Multilateral Memorandum of Understanding for sharing information; or
(c) regulated by a Financial Services Regulator in a jurisdiction which has entered into a bilateral memorandum of understanding with the DFSA for sharing information.

(3) A Fund Manager, or any Person making an Offer of a Unit of Fund or otherwise marketing a Fund, must not describe the Fund in its offer document or marketing material as an "Exchange Traded Fund" (or "ETF") or otherwise hold out the Fund as being an Exchange Traded Fund or ETF, unless the Fund meets the criteria in (2).

(4) The Fund Manager of an Islamic ETF must ensure that the Fund has an investment objective and strategy, which is to track the performance of a specified index or benchmark as specified in its Prospectus.

Derived from DFSA RM220/2018 (Made 22nd February 2018). [VER13/12-18]