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

I.　　General Provisions

1.The Central Bank of the Republic of China (Taiwan)(hereafter referred to as "the 
　Bank") has prescribed these Directions to establish an online network operation 
　system for the Bank's open market operations (hereafter referred to as "this 
　System").

2. Except where provided for in these directions, relevant operations of 
　 this System shall be conducted in compliance with the "Electronic Signatures
　 Law", "Directions for Open Market Operations by the Central Bank of the 
　 Republic of China (Taiwan)", "Directions Governing Designated Dealers for 
　 Open Market Operations", "the Government Certification Authority Certificate 
　 Practice Statement", "the MOEA Certification Authority Certificate Practice
　 Statement" and other relevant laws and regulations.

3.This System shall employ a digital signature mechanism to transmit information
　; the Government Certification Authority and the MOEA Certification Authority
　shall provide authentication and certificate issuance and management services,
　accept online institutions' applications for issuance or revocation of
　certificates and private keys and verify identities based on their respective
　Certification Practice Statement.

4. Financial institutions intending to apply to participate in this System as
　 online units shall submit official letters and "Application for Open Market
　 Operations Online Network Operation System" (Form 1) to the Department of 
　 Banking of the Bank (hereafter referred to as "the Department of the Banking").

II.　　Certificate application and revocation procedures

5. Upon obtaining the Department of Banking's approval as online units in
　 accordance with the application procedures in the foregoing Direction, and
　 having been issued user identifications and initial passwords, if the
　 financial institution is a company, such financial institution shall submit
　 certificate applications in accordance with the Certification Practice
　 Statement of the MOEA Certification Authority. If the financial institution
　 is not a company, such a financial institution shall submit certificate
　 applications for approval as an online unit in accordance with the
　 Certification Practice Statement of the Government Certification Authority 
　 of the Research, Development, and Evaluation Commission, Executive Yuan.
　 Upon the completion of the certificate application, such financial 
　 institutions shall fill out a "Certificate data for Open Market Operations 
　 Online Network Unit" (Form 2) and submit it with an official letter to the 
　 Department of Banking for data registration.

6. In the event that an online unit must revoke its certificate, it shall submit
　 an application to revoke its certificate in accordance with the Certification
　 Practice Statement of the MOEA Certification Authority or the Certification
　 Practice Statement of the Government Certification Authority of the Research,
　 Development, and Evaluation Commission, Executive Yuan. Upon completion of the
　 revocation of its certificate, such an online unit shall fill out a "Certificate
　 Revocation Data for Open Market Operations Online Network Unit" (Form3) and 
　 submit it with an official letter to the Department of Banking to change the data 
　 registration.

7. In the event that an online unit reassigns an authorized executive, it is
　 required to transfer the user identifications and passwords issued by the
　 Department of Banking by its own accord. The succeeding authorized executive
　 shall change his passwords, and accordingly summit basic data including the
　 executive's name, title, organization, phone number, fax number, and e-mail
　 address to the Department of Banking with an official letter for future 
　 reference. In the event that the liaison person on " The Central Bank of
　 the Republic of China's Open Market Operations Online Network Unit Certificate 
　 Data Form " has changed, the online unit shall fill out "Contact Information 
　 Amendment for Open Market Operations Online Network Unit" (Form 4) and summit
　 it with an official letter to the Department of Banking for future Liaison 
　 Person reference.

8.All online units shall establish rigorous security procedures, including the
　management of certificate, user identification and password, and build an
　independent security operation environment. Security procedures shall be
　implemented in accordance with relevant regulations. The online unit shall
　bear responsibility for all losses caused by negligent.

9.To ensure the effectiveness of online operations, online units shall regularly
　test private keys, query the certificate status, and test the system connection.

III.　　Issuance of certificates of deposit and purchase bills via the Bank''s open

10. When an online unit participates in the Bank’s open market operations, 
　　information on the amount of CDs it subscribes, the amount of outright 
　　purchase or repo transaction of bonds (bills) it applies to undertake, 
　　and its bid prices should be transmitted in the form of a digital envelope
　　automatically encrypted via the Bank's public key existed in the System and
　　bear a digital signature signed with the unit business executive's private
　　key.
　　When the information in the foregoing paragraph is transmitted back by this
　　System, it signifies that the online unit has completed the subscription of
　　CDs, application for undertaking outright purchase or repo transaction of 
　　bonds (bills), or the bidding procedure. If the online unit deletes the 
　　original information, it shall transmit the deletion information before the 
　　cutoff time. If the online unit needs to alter the original information, it 
　　shall transmit the deletion information and then transmit the modified 
　　information. Bidding information may not be withdrawn, deleted, or altered 
　　once it has been   transmitted.
　　After an online unit has transmitted information as in the above two paragraphs,
　　it must immediately ascertain the reason if no response is received, and should
　　contact the Bank and take appropriate measures.

11. With respect to the information transmitted by an online unit on the amount
　　of CDs it purchased, the amount of outright purchase or repo transaction of
　　bonds (bills) it applies to undertake, or its bid prices mentioned in the 
　　first paragraph of the preceding Direction, the online unit may not raise an 
　　objection to the Bank on the grounds that its system is not independent, 
　　dispatched personnel have not been authorized, personnel have been changed, 
　　passwords have been fraudulently or illicitly used, or cite other causes.

12.Online operation of this system shall be handle during times announced by the
　 Bank. The operation transmission cutoff time shall be based on the Bank's
　 central processing unit time. Any transmissions sent after the cutoff time
　 will not be accepted.

IV.　　Malfunction handling

13. The Department of Banking shall inform all online units to conduct business
　　via the transmission of written documents if this System malfunctions or the
　　network connection is interrupted and cannot be immediately restored. Online
　　units shall immediately inform the Department of Banking if their network
　　connection is interrupted, and may, if the severity of the malfunction
　　warrants, conduct business via the transmission of written documents after
　　applying to and receiving permission from the Department of Banking.

14. If an online unit cannot transmit written documents (forms 5~7-2) before the
　　operation cutoff time announced by the Department of Banking in accordance
　　with the provisions of the foregoing Direction, the online unit shall fax
　　the written documents to the Department of Banking for processing via a fax
　　number designated by the Department of Banking, and shall thereafter send the
　　corresponding written documents within a designated period of time.
　　The same seal as appears on "The Central Bank of the Republic of China's 
　　(Taiwan) Open Market Operation Dedicated Seal Card" shall be affixed to all
　　faxes and written documents in the foregoing Paragraph.

15. When an online unit sends relevant reports in accordance with the regulations,
　　relevant data shall be transmitted in the form of a digital envelope
　　automatically encrypted via the Bank's public key embedded in this System and
　　bearing a digital signature signed with the business executive's private key.

16. Online units may use the System to query or print out various items 
　　concerning the Bank's open market operations:
　　(1) The-day’s open market operation announcements.
　　(2) The-day’s open market operation information.
　　(3) Queries about The-day’s operation results by individual financial
　　　　institutions.
　　(4) Queries about the letters of confirmation for financial institutions.
　　(5) Queries about historical data for individual financial institution's
　　　　participation in the Bank’s open market operations.
　　(6) Queries about individual financial institution's quotations.