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

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

Explanations:
1.The relevant rules with respect to extending the scope of the Bank’s repurchase 
　operations are as follows:
　(1)Eligible counterparties: Banks, bills finance companies, Chunghwa Post Co. 
　　 Ltd., securities or insurance companies.  Insurance or securities companies 
　　 that are not Designated Dealer for Open Market Operations may conduct 
　　 repurchase transactions with the CBC through a designated dealer.
　(2)Tenor: within 180 days.
　(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:
　(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.
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).