Laws and Regulations Database of the Central Bank of the Republic of China(Taiwan)

Chapter 4　　Buybacks of Central Government Bonds

18.The buybacks of central government bonds are open to dealers only. Individuals 
　 and other juristic persons may engage dealers to submit bids under the dealers’
　 names.

19.The buybacks of central government bonds may use a multiple-yield, or a single-
　 yield auction mechanism. All bids are competitive.
　 Multiple-yield bids will be accepted successively, starting with those at yields 
　 higher than the minimum acceptable yield set. Where competing bid yields are   
　 equal and the remaining buyback amount is insufficient to meet the demand, 
　 allocations will be made pro-rata based on the bid amounts. Successful bidders 
　 shall settle their sellback securities at the yields they bid.
　 The provisions in Paragraph 2 shall apply mutatis mutandis to the competitive 
　 bidding and allocation method in single-yield auctions. Successful bidders shall 
　 settle their sellback securities at the lowest yield of the accepted bids.

20.Dealers shall use only the sellback tender document prescribed by the 
　 Department of the Treasury and submit the bids in a manner prescribed in 
　 Direction 9 for competitive bidding.

21.The sellback tenders shall be filled out in accordance with the provisions in 
　 Direction 10.However, the minimum for each competitive bid shall be NT$1 million
　 and bids in excess of NT$1 million will be in increments of NT$1 million.
　 The provisions in Direction 11 shall apply mutatis mutandis to sellback tenders 
　 deemed void.
　 The provisions in Direction 12, Direction 13 and Direction 16 shall apply 
　 mutatis mutandis to the time and place of an auction as well as the 
　 determination of auction awards.

22.Successful bidders shall carry out settlement on the buyback date of central 
　 government bonds.
　 Settlement for the buyback of central government bonds shall be performed in
　 accordance with applicable provisions of the Operational Directions for Book-
　 Entry Central Government Securities.