Laws and Regulations Database of the Central Bank of the Republic of China


Announced Date:April 16, 2003

Date:Amended on September 25, 2019; effective from October 1, 2019

  I.General Principles
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").
〈Laws and Regulations to Follow〉
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 
〈Transmission Mechanism of the System Information〉
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. 
〈Application to Participate or Withdraw as a Network Member〉
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.
  II. Certificate Management
〈First-Time Registration of Certificate〉
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 
〈Registration of Certificate Change〉
6.A network member whose registration information has changed shall log in to the 
 System to register the corresponding change to its certificate.
  III. Management of Network Membership
〈Change of Authorized Persons〉
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.
〈Security Control of Network Members〉
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.
  IV. Submitting Transaction Information for Participating in the Bank's Open Market Operations
〈Transmission of Transaction Information〉
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.
〈Validity of Transmission of Open Market Operations Information〉
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.
  V. Handling of System Interruption
〈Notification of System Interruption〉
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.
〈Conducting Business in Writing〉
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.
  VI. Written Documents and Formats
〈Written Documents and Formats〉
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.