I.  General Provisions

1.  The Central Bank of China (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 otherwise provided for in these Directions, relevant operations of this System shall be conducted in compliance with the "Electronic Signatures Law", "Directions for Issuance of Certificates of Deposit by the Central Bank of China", "Directions for Bidding on Central Bank of China Certificates of Deposit Sold by Tender", " Directions Governing Designated Dealers for Open Market Operations", " the Government Certification Authority Certification Practice Statement", " MOEA Certification Authority Certification 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 "Participating in the Central Bank of China's Open Market Operations Online Network Operation System Application Form" (Form 1) to the Department of Banking of the Bank ( hereafter referred to as "the Department of the Banking" ).

II. Certificate application and revocation procedures:

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 “The Central Bank of China's Open Market Operations Online Network Unit Certificate Data Form” (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 "Central Bank of China's Open Market Operations Online Network Unit Certificate Revocation Data Form " (Form 3) 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 submit 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 “The Central Bank of China's Open Market Operations Online Network Unit Certificate Data Form” has changed, the online unit shall fill out a “The Central Bank of China's Open Market Operations Online Network Unit Certificate Liaison Person Data Change Form " (Form 4) and submit it with an official letter to the Department of Banking for future reference. 
 

8.  All online units shall establish rigorous security procedures, including the management of electronic 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 negligence.
 

9.  To ensure the effectiveness of online operations, online units shall regularly test private keys, query the certificate status, and test the system connection.

III. Issuance of certificates of deposit and purchase bills via the Bank's open market operations system

10. When certificates of deposit are issued for sale by tender, an online unit may submit only up to five bids for each tenor of certificate of deposit issue announced by the Bank on one occasion, and may not submit bids with a total value exceeding the total value of the tenor issue on any given occasion. When certificates of deposit are issued by purchase, an online unit may apply to purchase only one tenor of certificate of deposit or negotiable certificate of deposit issue announced by the Bank on one occasion. Issuance of certificates of deposit and bills purchased by the Bank shall be traded in minimum units of NT$5 million or increments thereof.

11. Information about the online unit’s bids or purchases for the Bank’s certificates of deposit, and quotations for the bills purchased by the Bank shall be transmitted in the form of a digital envelope automatically encrypted via the Bank’s public key existed in the System and bearing 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, this signifies the completion of bidding, purchase application, or quotations procedures. If the online unit must delete the original information, it shall transmit the information to be deleted before the cutoff time. If the online unit must alter the original information, it shall transmit the information to be deleted and then transmit the modified information. Bidding information may not be withdrawn, deleted, or altered once it has been transmitted, however. 
When an online unit has transmitted information as in the above two paragraphs, it must immediately ascertain the reason if no response is received, and shall contact the Bank and take appropriate measures.
 

12.   When an online unit bids on or applies to purchase the Bank’s quotations certificates of deposit, or quotes for the bills purchased by the Bank, it 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 other cause.
 

13.   Online operation of this System shall be handled 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.

IV.   Malfunction handling

14.   The Department of Banking shall inform all online units to conduct business via the transmission of hand 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 hand written documents after applying to and receiving permission from the Department of Banking.

15.   If an online unit cannot transmit hand written documents (forms 5~10) 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 impression of the original "The Central Bank of China's Negotiable Certificate of Deposit Dedicated Seal Card" shall be affixed to all faxes and hand written documents in the foregoing paragraph.

V. Queries and reports on media

16. 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.

17. Online units may use this 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 (result of authorized purchase of certificates of deposit, result of sale of certificates of deposit by tender, operation result of bills purchased).

﹝Remarks：These Directions are made in Chinese which shall prevail in case of any discrepancy between the English translation and the Chinese original.﹞