Regulatory Alerts2005-03-21
Added · Updated
Directions Governing Designated Dealers for Open Market Operations
The Central Bank of China restricts open market operation counterparties to designated dealers, classified as general designated dealers or primary dealers in the central government bonds market. General designated dealers must maintain a net worth of at least NT$20 billion and an equity-to-risk-assets ratio of no less than 8%, while primary dealers must hold specific bond dealer status and meet net worth and rating thresholds, such as NT$6 billion for non-banks and a 200% equity-to-risk-assets ratio for securities companies. Applicants must submit documents in July each year, and dealers are required to submit annual financial statements within four months of the fiscal year-end. The Bank may revoke status or suspend privileges for up to six months if dealers fail to meet financial criteria or violate operational obligations.
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