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

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

2. Except where provided for in these directions, relevant operations of the System shall be conducted in compliance with the "Electronic Signatures Act", "Directions for Open Market Operations by the Central Bank of the Republic of China (Taiwan)", "Directions Governing Designated Dealers for Open Market Operations", relevant certification authorities certification practices, and other relevant laws and regulations.

3. The System shall employ a digital signature mechanism to transmit information; the relevant certification authorities shall provide authentication and certificate issuance management services to handle the applications of network members for issuance or revocation of certificates.

4. Financial institutions intending to participate in or withdraw from the System as a network member shall apply to the Bank's Department of Banking by submitting an official letter and relevant documents.

5. A financial institution that has been approved by the Bank's Department of Banking to participate in the System as a network member shall log in to the System to carry out first-time registration of certificate after completing the certificate application.

6. A network member whose registration information has changed shall log in to the System to register the corresponding change to its certificate.

7. When a network member reassigns its authorized supervisor, it shall log in to the System to change the information of the authorized supervisor; when a network member changes its liaison persons, its authorized supervisor shall log in to the System to change the information of liaison persons.

8. Network Members shall establish rigorous security control procedures, including management of electronic certificates, user identification and passwords, and development of an independent and secure operation environment. Security control procedures shall be implemented in accordance with relevant regulations. The network member shall be responsible for all losses caused by own negligence.

9. A network member that participates in the Bank's open market operations shall submit transaction information according to the schedule announced on the System and the submission time recorded shall be based on the time displayed on the Banks central processing unit.

The transaction information submitted shall bear a digital signature signed with the private key of the network member’s authorized executive and be transmitted in the form of a digital envelope automatically encrypted via the Bank's public key in the System.

When confirmation of the submitted transaction information in the preceding paragraph is transmitted back to the network member by the System, it means the network member has completed the submitting formalities; if no reply message is received, the network member should act promptly to identify the problems and notify the Banks Department of Banking.

10. With respect to the transaction information transmitted by a network member under the first paragraph of the preceding Direction, the network member may not raise any objection to the Bank on the grounds that its system is not independent, persons submitting the information have not been authorized or have been changed, passwords have been fraudulently or illicitly used, or cite any other reason.

11. The Bank's Department of Banking will inform all network members to carry out certificate registration under Directions 5 and 6, change of data in Direction 7 and submission of transaction information under Direction 9 in writing if the System is interrupted and cannot be immediately restored. A network member shall immediately inform the Bank’s Department of Banking if its connection with the System is interrupted, and may apply to the Department of Banking to conduct business in writing depending on severity of the malfunction.

12. When a network member conducts business in writing in accordance with the preceding Direction, it shall submit the written documents by fax or email to the Banks Department of Banking, and shall thereafter deliver the original documents by the designated time.

13. For financial institutions applying to participate as a network member under Direction 4 and for network members conducting business in writing under Direction 11, the documents and formats required for submission shall be prescribed separately by the Bank's Department of Banking.