Directions for Online Network Operation of the Open Market Operations by the Central Bank of the Republic of China (Taiwan)

Jump to the main content block

Laws and Regulations Database of the Central Bank of the Republic of China-Article Content

Article Content

[Related Circulars]

Title：

Directions for Online Network Operation of the Open Market Operations by the Central Bank of the Republic of China (Taiwan)

Announced Date： April 16, 2003

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

[Print]

[Print-NoSerialNumber]

I.General Principles

(Purpose)

1.

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.

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 regulations.

(Transmission Mechanism of the System Information)

3.

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.

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.

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 application.

(Registration of Certificate Change)

6.

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.

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.

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.

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.

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

[Related Circulars]

(Notification of System Interruption)

11.

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.

[Related Circulars]

(Conducting Business in Writing)

12.

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

[Related Circulars]

(Written Documents and Formats)

13.

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.