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

The CBC shall extend the scope of its repurchase operations. All institutions and associations are requested to cooperate in accordance with the Explanations below.

1.The relevant rules with respect to extending the scope of the Bank’s repurchase operations are as follows:

(1)Add “The Application (and quotation) Form for Repurchase Operations of the CBC”, which has two versions, Form A and Form B, depending on the eligible collaterals pledged, and

(2)Amend “The Repurchase Agreement” to include rules relating to dealing rates and authorization.

(3)Interest rate: The CBC sets repurchase interest rate with reference to the market interest rates and interest rates on certificates of deposit issued by the CBC.

(4)Eligible collateral: in accordance with Articles 26 and 27 of The Central Bank of the Republic of China (Taiwan) Act, but primarily Certificates of Deposit issued by the CBC (CD and NCD) and government notes.

(5)Application:

i. Operations through announcement by the CBC: counterparties conduct transactions through “online network operation system for the Central Bank of China's open market operations” or submit a written application.

ii. Eligible counterparties may apply to the CBC for approval to participate in repurchase operation transactions: by submitting a written application.

2.Financial institutions not linked to “online network operation system for the Central Bank of China's open market operations” may enter into repurchase operation transactions with the CBC by appointing, through written agreements, a Bank’s Designated Dealer for Open Market Operations under the afore-mentioned rules.

3.To facilitate smooth operations, the CBC has added new and amended certain documents as follows:

4.Each relevant trade association shall notify its member companies to act in accordance with the above rules.

5.Enclosed herewith are Repurchase Operations Expansion Flowchart, the Application (and Quotation) Form for Repurchase Operations of the CBC, and Securities Repurchase Agreement (the CBC also announces the foregoing on the "online network operation system for the Central Bank of China's open market operations". Contact person: Mr. ZUO Jhao-Ming (Tel: 2357-1377).