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Title	Taiwan Depository & Clearing Corporation Operating Rules for Spot Gold CH
Date	2023.12.29 ( AMENDMENT )

Article Content

Chapter 1 General Principles

Article 1	These Operating Rules are adopted per 17 December 2014 Order No. Financial-Supervisory-Securities-SITC-10300445832 of the Financial Supervisory Commission.
Article 2	For the purposes of these Operating Rules, the following terms shall have the following meanings: "Spot gold" means gold traded on the Taipei Exchange (TPEx), with a minimum acceptable fineness of 999.9 parts per thousand fine gold, and deliverable in physical form. "Trading unit" means a trading unit as provided in the TPEx Rules Governing Registration and Trading of Spot Gold. "Participant" means a participant as provided in Article 4 of the Operating Rules of the Taiwan Depository & Clearing Corporation (the "TDCC Operating Rules") and a market maker as provided under the TPEx Rules Governing Registration and Trading of Spot Gold. "Spot gold custodian bank" means a bank appointed and authorized by the Taiwan Depository & Clearing Corporation (TDCC) to hold spot gold in custody on TDCC's behalf. "Participant account" means a participant account set up in accordance with Article 12 of the TDCC Operating Rules. "Spot gold account" means an account set up by a spot gold custodian bank for recording the type, quantity, and reasons for increases (credits) or decreases (debits) in the quantity of spot gold held in custody on TDCC's behalf.
Article 3	The operational services TDCC renders for spot gold business shall be handled in accordance with applicable laws and regulations, these Operating Rules, and other applicable provisions.
Article 4	Any withdrawal of physical gold or book entry transfer of spot gold by or for a participant's customer ("customer") shall be made in the name of the participant.
Article 5	Spot gold custodied by TDCC is held in fungible custody, and in co-ownership by all relevant owners based on the balances recorded in the participant account.
Article 6	The provisions of Articles 7 and 8 of the TDCC Operating Rules shall apply mutatis mutandis to TDCC's business hours and holidays for the purposes hereof.
Article 7	The provisions of Articles 9 to 20, 22, and 23 of the TDCC Operating Rules shall apply mutatis mutandis to the opening, management, and cancellation of the book-entry depository accounts ("depository accounts") of participants and their customers for the purposes hereof. If a participant or its customer has previously opened a depository account in accordance with the TDCC Operating Rules, the original depository account may be used for the purposes hereof.

Chapter 2 Custody of Spot Gold on TDCC's Behalf

Article 8

TDCC may appoint and authorize a spot gold custodian bank to hold spot gold in custody on TDCC's behalf. The custodian bank shall, in accordance with the TPEx Rules Governing Registration and Trading of Spot Gold, deposit the spot gold placed in its custody into an allocated account at a bank that is both a market-making member of the London Bullion Market Association (LBMA) and a clearing member of the London Precious Metals Clearing Ltd (LPMCL).
The spot gold placed in the custody of the spot gold custodian bank, as referred to in the preceding paragraph, shall be segregated and listed separately from its own assets.

Article 9

The spot gold custodian bank shall set up a spot gold account and record TDCC's name, location, and profit-seeking enterprise uniform ID number, and the type, quantity, increases or decreases in quantity, and the reasons therefor, of spot gold (including any portion pending receipt by a participant that has applied for physical withdrawal but not yet claimed the delivery), and other necessary matters.

Chapter 3 Changes in Market-Making Positions of Market Makers

Article 10

When a market maker applies to increase its market-making position in spot gold, the operation shall proceed in accordance with the following procedure:

The market maker shall notify the spot gold custodian bank of the relevant information including the type and quantity of spot gold.
After receiving the notification described in the preceding subparagraph, the spot gold custodian bank shall credit the quantity of spot gold in the spot gold account, and also notify TDCC of the relevant information including the market maker code and the type and quantity of spot gold.
The market maker shall notify TDCC of the relevant information including the type and quantity of spot gold.
After receiving the notifications described in the preceding 2 subparagraphs, and after comparing and verifying the accuracy of the content, TDCC will credit the quantity of spot gold in the market maker's depository account.

Article 11

When a market maker applies to decrease its market-making position in spot gold, the operation shall proceed in accordance with the following procedure:

The market maker shall notify TDCC of the relevant information including the type and quantity of spot gold, and also notify the spot gold custodian bank.
After receiving the notification described in the preceding subparagraph, the spot gold custodian bank shall notify TDCC of the relevant information including the market maker code and the type and quantity of spot gold.
After receiving the notifications described in the preceding 2 subparagraphs, and after comparing and verifying the accuracy of the content, TDCC will debit the quantity of spot gold in the market maker's depository account, and also notify the spot gold custodian bank.
After receiving the notification described in the preceding subparagraph, the spot gold custodian bank shall debit the quantity of spot gold in the spot gold account.

Chapter 4 Clearing and Settlement

Article 12

To perform clearing and settlement for spot gold, a participant shall sign an account opening agreement and a clearing and settlement agreement with TDCC and open a depository account with TDCC, and also open a funds settlement account ("settlement account") at the bank where it transacts business. If the participant has previously performed clearing and settlement for Emerging Stock, it shall make joint use of the original Emerging Stock depository account and settlement account.

Article 13

The provisions of Articles 61-4 to 61-12 of the TDCC Operating Rules shall apply mutatis mutandis to a participant's handling of book-entry operations for clearing and settlement of spot gold, and such clearing and settlement shall be completed together with the clearing and settlement of Emerging Stock.

Chapter 5 Account Transfer

Article 14	When a customer applies to transfer spot gold in the customer's account with the participant to the customer's account opened with another participant, the customer shall present the passbook and submit an application form (affixed with the original seal/signature-of-record) to the former participant. After reviewing and verifying the accuracy of the content, the participant shall notify TDCC of the relevant information including the participant code, the customer's account number, and the type and quantity of spot gold. After receiving the notification described in the preceding paragraph, and after reviewing and verifying the accuracy of the customer's account balance, TDCC will immediately make the entries in the participant account and notify the participant to make the necessary entries in the customer account.
Article 15	When a customer makes an assignment/transfer of spot gold other than through the TPEx trading system and carries out the assignment/transfer through book-entry transfer, the customer shall present the passbook and relevant evidentiary documents and submit an application form (affixed with the original seal/signature-of-record) to the participant. After reviewing and verifying the accuracy of the content, the participant shall notify TDCC of the relevant information including the participant code, the customer's account number, and the type and quantity of spot gold. After receiving the notification described in the preceding paragraph, and after reviewing and verifying the accuracy of the customer's account balance, TDCC will immediately make the entries in the participant account and notify the participant to make the necessary entries in the customer account.
Article 15-1	For delivery and receipt of spot gold related to margin trading or refinancing between a securities finance enterprise and a securities firm engaged in margin purchase and short sale business on its behalf ("agent securities firm") or a securities firm engaged in margin purchase and short sale business, the relevant party may use the computer network and input the relevant account transfer information to notify TDCC. The provision of the preceding paragraph shall apply mutatis mutandis to the delivery and receipt of spot gold related to margin trading between an agent securities firm and a customer or between a securities firm engaged in margin purchase and short sale business and a customer. Upon receiving the transfer notification described in either of the preceding 2 paragraphs, TDCC will immediately make the account entries for both participants.
Article 15-2	A securities firm carrying out money lending for securities business or money lending for unrestricted purposes, or a securities finance enterprise carrying out securities settlement financing or secured money lending shall, for the related delivery and receipt of spot gold, use the computer network and input the relevant account transfer information to notify TDCC. Upon receiving the notification described in the preceding paragraph, TDCC will immediately make the entries in the participant account.
Article 15-3	When a customer applies to transfer spot gold in the customer's account with the participant to the account of the Taiwan Futures Exchange (TAIFEX) to meet an operational need of converting an expiring gold futures or gold options contract into the underlying spot gold, the customer shall present the passbook and submit an application form (affixed with the original seal/signature-of-record) to the participant. After reviewing and verifying the accuracy of the content, the participant shall notify TDCC of the relevant information including the participant code, the customer's account number, and the type and quantity of spot gold. After receiving the notification described in the preceding paragraph, and after reviewing and verifying the accuracy of the customer's account balance, TDCC will immediately transfer the spot gold from the participant's account to TAIFEX's account, and also notify the participant to make the necessary entries in the customer account.
Article 15-4	When TAIFEX transfers spot gold in its account to the account of a designated participant to meet an operational need of converting an expiring gold futures or gold options contract into the underlying spot gold or of returning spot gold, TAIFEX shall notify TDCC of the relevant information including the participant code, the customer's account number, and the type and quantity of spot gold. After receiving the notification described in the preceding paragraph, and after reviewing and verifying the accuracy of TAIFEX's account balance, TDCC will immediately transfer the spot gold from TAIFEX's account to the designated participant's account, and also notify the participant to make the necessary entries in the customer account.
Article 15-5	Where the underlying of call (put) warrants is spot gold, TDCC will carry out book-entry transfer of the underlying spot gold upon exercise of the call (put) warrants and make related entries, within the time period prescribed by TPEx and based on TPEx's notification, in accordance with the following procedures: When a call warrant holder purchases the underlying spot gold from the issuer at the stipulated exercise price, TDCC will transfer the spot gold from the issuer's depository account to the holder's depository account. If the balance of spot gold in the issuer's depository account is insufficient, TDCC will transfer none of the spot gold and will notify TPEx to handle the matter. When a put warrant holder sells the underlying spot gold to the issuer at the stipulated exercise price, TDCC will transfer the spot gold from the holder's depository account to the issuer's depository account. If the balance of spot gold in the holder's depository account is insufficient, TDCC will transfer none of the spot gold and will notify TPEx to handle the matter.

Chapter 6 Withdrawal of Physical Gold

Article 16	A spot gold custodian bank shall disclose information about the withdrawal of physical gold and any amendment on its website including the required documents, the withdrawal times, the withdrawal deadline, the handling process when the deadline is missed, and the relevant withdrawal fees.
Article 17	When applying to withdraw physical gold, a customer shall present the passbook and submit an application form (affixed with the original seal/signature-of-record) to the participant. After reviewing and verifying the accuracy of the content, the participant shall notify TDCC of the relevant information including the participant code, the customer's account number, and the type and quantity of spot gold. The unit of withdrawal for the application referred to in the preceding paragraph shall be 1 trading unit or an integer multiple thereof. However, if the spot gold custodian bank provides for a different minimum withdrawal unit, the provision shall govern. After receiving the notification described in paragraph 1, and after reviewing and verifying the accuracy of the customer's account balance, TDCC will, on the next business day following the application date, make the entries in the participant account and notify the participant to make the necessary entries in the customer account, and also notify the spot gold custodian bank of the withdrawal information.
Article 18	A customer shall, in accordance with the provisions of the spot gold custodian bank, submit the required documents and pay the required fees to the custodian bank for withdrawal of physical gold. After verifying the customer's documents and the identity of the withdrawer/receiver, and after verifying the accuracy of the content by comparing it with the physical gold withdrawal information as notified by TDCC, the spot gold custodian bank shall deliver the requested physical gold to the customer.
Article 19	A spot gold custodian bank shall, on the day a customer receives the delivery of withdrawn physical gold, debit the quantity of spot gold in the spot gold account, and also notify TDCC. After receiving the notification described in the preceding paragraph, and after reviewing and verifying the accuracy of the content, TDCC will immediately make the necessary account entries.
Article 20	If a customer misses the claim deadline for a withdrawal of spot gold, the spot gold custodian bank shall make the necessary entries in the spot gold account, and also notify TDCC of the relevant information including the participant code, the customer's account number, and the type and quantity of spot gold. After receiving the notification described in the preceding paragraph, and after reviewing and verifying the accuracy of the content, TDCC will immediately make the entries in the participant account and notify the participant to make the necessary entries in the customer account.

Chapter 7 Supplementary Provisions

Article 21	At the end of business operations each day, a spot gold custodian bank shall compile current-day summary information including the type, increases or decreases in quantity, and balance of spot gold it holds in custody on TDCC's behalf and prepare spot gold custody change and balance information accordingly for notification to TDCC.
Article 22	A participant or spot gold custodian bank shall, respectively for the participant account and the spot gold account, perform daily reconciliation with TDCC of the type, quantity, and changes of or in spot gold. If it discovers a discrepancy, it shall immediately notify TDCC and jointly determine the cause and correct it.
Article 23	TDCC, participants, and spot gold custodian banks shall, according to their respective business operations, safe-keep and retain the relevant account statements, records/information on changes, or investor withdrawal documents for a period of no less than 15 years.
Article 24	TDCC will separately adopt directions for relevant spot gold operations as well as a handbook for relevant operations required under these Operating Rules. The provisions of Article 1 of the TDCC's Fee-Charging Standards with respect to Emerging Stock shall apply mutatis mutandis to the fees payable to TDCC by a participant for its handling of spot gold operations, and the unit for calculating fees shall be 1 trading unit.
Article 25	These Operating Rules, and any amendments hereto, shall be implemented following approval by the competent authority.