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 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").

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.

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.

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.