|
[Law Basis]
[Print]
|
Chapter 9 Management of System Failure and Correction of Account Errors
|
48.
In the event of malfunction or line interruption of the CGSS mainframe system
resulting in full-scale online failures, the Department of Information Management
shall immediately notify the Department of the Treasury, the Department of Banking
and all online participants, and take appropriate actions depending on the
circumstances of the contingency:
(1) In case of system interruption：
i. Payment for awarded securities and buyback:A clearing bank shall produce
electronic medium that contain information on payments for awarded securities
and the delivery of soldback securities,and submit the underlying
electronic medium to Department of the Treasury for processing. The Bank shall
produce electronic medium for the results of securities transfer against payment
and funds transfer against delivery of soldback securities and give such
electronic medium to the clearing bank for processing.
ii.Free-of-payment transfer, restricted transfer registration, lodgment
registration, and return registration: operations shall be carried out in manual
backup procedures. The transferor banks shall deliver all accepted transactions
to Department of the Treasury on the [electronic] medium in whole batches；
Department of the Treasury shall contact the Transferee banks to get the Bank
serial numbers of the last received transactions and produce the information on
the [electronic] medium for processing by the transferee banks. Transferee banks
shall report the results of processing to Department of the Treasury by fax and
telephone, and Department of the Treasury shall notify the relevant departments.
iii.The provisions in item
(i) hereof shall apply mutatis mutandis to delivery-versus-payment transfer; the
provisions in item
(ii)hereof shall apply to exchange for government-held stocks, and bond stripping
or reconstitution.
iv.The [electronic] medium produced by clearing banks according to the three
preceding items shall be delivered in a sealed envelope attached with a detailed
list and affixed with the authorized signature of the securities account.
(2) In case of CGSS mainframe system malfunction: CGSS operations shall be relocated to
the off-site backup center of the Bank. If the off-site backup center is also inoperative,
all online operations of interbank securities transaction shall be suspended and shall
be reactivated after the CGSS is recovered.
When the CIFS experiences disruptions while the CGSS operates normally: Except in
case of payment for awarded securities, buy back and repayment of principal and
payment of interest, operations shall be backed up manually, in accordance with the
Guidelines for Central Bank Electronic Interbank Funds Transfer and Settlement
Procedures, all other payment-related transactions shall be executed after the CIFS
is recovered.
|
|
49.
In the event of malfunction or line interruption of an online participant’s
mainframe system, the participant shall immediately notify the Department of the
Treasury and the Department of Information Management. Manual backup procedures
shall be put in place if operations are not recovered by 5:00 p.m. When the cause of
failure lies with a transferor bank, the transferor bank shall produce a medium
containing accepted transaction data in a batch and send it, before the recovery of
the system, to the Department of the Treasury prior to 6:30 p.m. The Bank shall in
turn produce a medium containing the processed transactions received from the
transferee bank and provide it to the transferor bank for processing. When the cause of
failure lies with the transferee bank, the Bank shall produce a medium containing
accepted transaction data to the transferee bank for processing. The transferee bank shall
report the processing results to the Department of the Treasury by facsimile and telephone.
The Department of the Treasury shall in turn forward the results to the relevant parties.
The medium referred to in the preceding paragraph, shall be delivered in a sealed
envelope attached with a detailed list and affixed with the authorized signature of
the securities account.
|
|
50.
Where the Bank, due to a system breakdown, causes interbank security transactions
or funds transfers to be inconsistent with the original documentation of the
clearing bank, the Bank shall make the necessary correction in accordance with the
relevant accounting regulations.
|
|
51.
When a system participant discovers an error while reviewing its same-day
transaction statement or through checking the comprehensive trading information
for the given day, it shall immediately notify the relevant department of the Bank
and take part in the investigation.
|
|
52.
When the transmission of an interbank transaction instruction of free-of-payment
transfer, restricted transfer registration, lodgment registration, return
registration, or exchange for government-held stocks does not conform with the
original documents, a transferor bank shall transmit a message requesting for
return of transfer upon obtaining approval from the transferee bank, which shall
make a reversal transfer for correction accordingly.
The transferee shall offer its full cooperation in making the aforementioned
correction when notified. If the balance of securities, stocks or funds of a
transferee bank’s customer account is insufficient to cover a reverse correction
transfer, the transferor bank shall negotiate with the customer to resolve the
problem by itself.
The preceding two paragraphs do not apply to STRIPS.
|
|
53.
|
|
For transactions not conforming with the original documentation as under Direction
51 and item 1, Direction 52, which are not processed by the transferor bank on the
same day but corrected at a later date, and where delay adversely affects the
interest of the transferee bank, it may request the transferor bank to pay
compensation interest incurred from the date of the transaction until the date of
correction for any securities pending transfer during that period or for a
shortfall in the transfer. The transferor bank shall not be liable for any other
damages.
|
|
With the exception of previous agreements between the parties to a transfer,
payment interest as per the preceding paragraph, shall be calculated, per diem, at
the weighted average of the overnight interbank call loan rate, for the number of
days of delay.
|
|
54.
Where a registration institution discovers an error connected with any type of
book-entry CGS registration which makes the transaction invalid, it shall
immediately investigate the source of the error and re-enter the transaction data.
Interbank transactions that have not been effected before the cut-off time of the
CGSS operation shall be rejected by the CGSS Center.
|
|
|
