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Title	Taiwan Depository & Clearing Corporation Directions for the Handling by Participants of Book-Entry Transfer Operations for Exchange-Traded Fund Beneficial Certificates and Active Exchange-Traded Fund Beneficial Certificates CH
Date	2024.12.31 ( Amended )

Article Content

Chapter 1 General Principles

Article 1	These Directions are adopted pursuant to Articles 55, 57, 71-6, 71-7, and 101 of the Operating Rules of the Taiwan Depository & Clearing Corporation (TDCC).
Article 1-1	A securities investment trust enterprise ("SITE") or futures trust enterprise ("FTE") submitting required application documentation to TDCC electronically shall first have an electronic certificate recognized by TDCC.

Chapter 2 Account Opening and Contract Signing Operations

Article 2

A SITE or FTE must sign the account opening agreement with TDCC, open a depository account, become a participant of the TDCC, and leave a seal impression on file with TDCC, to be used for the handling of matters in connection with book-entry transfer operations for exchange-traded securities investment trust fund beneficial certificates or exchange-traded futures trust fund beneficial certificates (collectively, "ETF beneficial certificates") or active exchange-traded securities investment trust fund ("active ETF") beneficial certificates.

Chapter 3 Initial Public Offering Operations

Article 3

When a SITE makes an initial public offering and issuance of beneficial certificates of a securities investment trust ETF of domestic component securities or beneficial certificates of an active ETF of domestic component securities, if it does so through a securities firm that conducts in-kind creation of those beneficial certificates for its own account or on behalf of its customers, the securities firm shall transfer the securities portfolio to the SITE's depository account at the custodian institution (the "custodian").
When a SITE applies for registration and book-entry transfer operations for beneficial certificates under the preceding paragraph, after the securities portfolio is transferred to the SITE's depository account at the custodian, the SITE shall, by 5 p.m. two business days before the book-entry delivery date, submit the following materials electronically to TDCC:

Data media of distribution lists of the securities for registration and delivery by book-entry transfer.
Document of approval by the competent authority of the public offering and establishment of the ETF (must be affixed with the original seal/signature-of-record).
Application for registration of the basic information of the ETF.

TDCC will compile the number of units and the amounts based on the data media submitted by the SITE under subparagraph 1 of the preceding paragraph, and then notify the SITE. The SITE shall, by 5:30 p.m. two business days before the book-entry delivery date, perform an "ETF Registration and Book-Entry Delivery/Cancellation Application" (transaction code A88; application type 1: initial public offering), and after verifying the accuracy of the information shall notify TDCC (execution operation item 1: confirmation); if the check reveals any discrepancy, it shall immediately notify TDCC and jointly investigate the reason and address the issue:
Based on the SITE's confirmation notice under the preceding paragraph, TDCC will immediately register the amounts of the beneficial certificates and issue a Certificate of Registration of Issuance in Dematerialized Form to the SITE. Additionally, based on the data media of distribution lists prepared by the SITE of the securities for delivery by book-entry transfer, TDCC will, on the book-entry delivery date designated by the SITE, deliver the beneficial certificates by book-entry transfer to the proprietary account or customer account under the securities firm's depository account.

Article 4

When a SITE makes an initial public offering and issuance of domestic-component-securities securities investment trust ETF beneficial certificates or domestic-component-securities active ETF beneficial certificates, if it does so by using funds raised through public offering to purchase the securities portfolio represented by those beneficial certificates, it shall transfer the securities portfolio from its depository account at a securities firm to the SITE's depository account at the custodian.
When the SITE applies to TDCC for the handling of registration and book-entry transfer operations for beneficial certificates under the preceding paragraph, the procedures set out in paragraphs 2 to 4 of the preceding article shall be followed.

Article 5

When a SITE or FTE applies for registration and book-entry transfer operations for initial public offering and issuance of fund beneficial certificates under paragraph 2, , the SITE or FTE shall, by 5 p.m. two business days before the book-entry delivery date, submit the following materials electronically to TDCC:

Data media of distribution lists of the securities for registration and delivery by book-entry transfer.
Document of approval by the competent authority of the public offering and establishment of the ETF (must be affixed with the SITE's original seal/signature-of-record).
Application for registration of the basic information of the ETF.

The scope of the fund beneficial certificates mentioned in the preceding paragraph is as follows:

Foreign-component-securities securities investment trust ETF beneficial certificates.
Leveraged or inverse securities investment trust ETF beneficial certificates.
Beneficial certificates denominated in an additional currency for TPEx-traded beneficial certificates of the type in subparagraph 1.
Foreign-component-securities securities active ETF beneficial certificates.
Futures ETF beneficial certificates.
Leveraged or inverse futures ETF beneficial certificates.

    TDCC will compile the number of units and the amounts based on the data media submitted by the SITE or FTE under subparagraph 1 of paragraph 1, and then notify the SITE or FTE. The SITE or FTE shall, by 5:30 p.m. two business days before the book-entry delivery date, perform an "ETF Registration and Book-Entry Delivery/Cancellation Application" (transaction code A88; application type 1: initial public offering), and after verifying the accuracy of the information shall notify TDCC (execution operation item 1: confirmation); if the check reveals any discrepancy, it shall immediately notify TDCC and jointly investigate the reason and address the issue.
    The SITE or FTE shall notify its custodian of the amount of the beneficial certificates for the book-entry transfer operation. The custodian shall, by 5:30 p.m. two business days before the book-entry delivery date, perform an "ETF Creation/Redemption Amount Verification" (transaction code A69; application type 1: initial public offering), to notify TDCC of the confirmed amount.
    Based on the confirmation notices of the SITE or FTE and its custodian under the preceding paragraph, TDCC will immediately register the amounts of the beneficial certificates and issue a Certificate of Registration of Issuance in Dematerialized Form to the SITE or FTE. Additionally, based on the data media of the distribution lists prepared by the SITE or FTE of the securities for delivery by book-entry transfer operation, TDCC will, on the designated book-entry delivery date, deliver the beneficial certificates by book-entry transfer operation to the proprietary account or customer account under the participant's depository account.

Chapter 4 Creation Operations After Public Offering and Establishment

Section 1 Operations for In-Kind Creation of Domestic-Component-Securities Securities Investment Trust ETF Beneficial Certificates and Domestic-Component-Securities Active ETF Beneficial Certificates

Article 6	When a securities firm, for its own account or on behalf of customers, performs in-kind creation of domestic-component-securities securities investment trust ETF beneficial certificates, the securities earmarking operations shall be conducted in accordance with the following procedures: TDCC, based on notification from the TWSE or TPEx, shall perform the earmarking operations for the securities firm's or its customer's original securities portfolio, borrowed securities, balance of the securities portfolio bought one business day preceding the subscription date, balance of the securities portfolio bought on the subscription date, and securities portfolio from in-kind redemption on the business day preceding the subscription date, and report the results of the earmarking to the TWSE or TPEx. On the first business day after the subscription date, after reviewing the in-kind creation information, the SITE will notify the TWSE or TPEx of any discrepancy in the in-kind creation information, in which event the TWSE or TPEx will notify TDCC, which will perform the operation to remove the earmark on the securities portfolio earmarked in the proprietary account or customer account under the securities firm's depository account. The securities firm may perform an "ETF Changes Details Query" (transaction code 346, query type 1), and print an "ETF Earmarking/Removal Details Query Form", to query the detailed information on the earmarking and removal of earmarking of in-kind creation securities.
Article 7	When a SITE conducts the book-entry transfer operations of domestic-component-securities securities investment trust ETF beneficial certificates, the following procedures shall be followed: The TWSE or TPEx, based on the details of the SITE's creation order, will transmit the data media of the distribution lists of the securities to TDCC for the book-entry transfer. TDCC, will compile the number of units and the amounts based on the data media of the preceding subparagraph transmitted by the TWSE or TPEx, and then notify the SITE. The SITE, by 5:30 p.m. one day before the book-entry delivery date, shall perform an "ETF Registration and Book-Entry Delivery/Cancellation Application" (transaction code A88; application type 2: creation), and after verifying the accuracy of the information shall notify TDCC (execution operation item 1: confirmation); if the check reveals any discrepancy, it shall immediately notify TDCC, and jointly investigate the reason with TDCC, the TWSE, or the TPEx and address the issue. TDCC, based on the SITE's confirmation notice, will register the issuance amount for that transaction. After registration is completed, the SITE may apply to TDCC for issuance of a Certificate of Registration of Issuance in Dematerialized Form.
Article 8	In the book-entry transfer operations for in-kind creation of domestic-component-securities securities investment trust ETF beneficial certificates, the following procedures shall be followed: On the book-entry delivery date, TDCC, based on notification from the TWSE or TPEx, will transfer the securities portfolio from the proprietary account or customer account under the securities firm's depository account to the SITE's depository account at the custodian, and deliver those beneficial certificates by book-entry transfer to the proprietary account or customer account under the securities firm's depository account. On the book-entry delivery date, TDCC will prepare a "Transfer List of ETF Beneficial Certificates" (STN17) and deliver it to the SITE. The securities firm may perform a "Transfer Transaction Details Query" (transaction code 167, query type 1), and print a "Transfer Transaction Details Query Form", to check the details of book-entry transfer operations – inward transfers of those beneficial certificates – on the current day. The custodian may perform a "Transfer Transaction Details Query" (transaction code 167, query type 1), and print a "Transfer Transaction Details Query Form", to check the details of inward transfers of the securities portfolio on the current day. In the event of any failure by the securities firm to perform settlement obligations on the book-entry delivery date, or if the SITE wishes to amend its registration and book-entry delivery application information and data media of the distribution lists of the securities for registration and delivery by book-entry transfer, the SITE shall submit an amendment application to request TDCC to carry out the operations for debit of those beneficial certificates. A securities firm, with the prior consent of the SITE, will deliver securities that meet a required percent of the deliverable securities portfolio, and pay a margin for the shortfall in the securities in the required time period. Then, on the first business day after the subscription date, the securities firm will purchase securities to fully cover the shortfall and deliver them to the SITE. TDCC will, on the third business day after the creation date, based on notification from the TWSE or TPEx, transfer the securities purchased for delivery to cover the shortfall from the proprietary account or customer account under the securities firm's depository account to the SITE's depository account at the custodian. The custodian may perform a "Transfer Transaction Details Query" (transaction code 167, query type 1) to print a "Transfer Transaction Details Query Form" and check the details of the inward transfer of the securities that were purchased and delivered to cover the shortfall.
Article 9	When a securities firm, on a single day, buys for its own account, or buys on behalf of a single customer account, a quantity of the securities portfolio represented by domestic-component-securities securities investment trust ETF beneficial certificates that is sufficient—or a quantity of the securities portfolio that, with the addition of originally held securities, borrowed securities, the balance of securities bought on the preceding business day, and securities from in-kind redemption on the preceding business day, is sufficient—to reach the requirements for in-kind creation of those beneficial certificates, and sells those beneficial certificates, the following procedures shall be followed: When the securities firm buys the securities portfolio represented by those beneficial certificates on its own account, or on behalf of a single customer account, and sells those beneficial certificates on a single day, it shall on the same day follow the procedures set out in this Section to apply for in-kind creation operations. When, on the second business day after the subscription date, the securities firm has an insufficient balance in its account due to the sale of those beneficial certificates on the subscription date, the TWSE or TPEx will compile an itemized statement of postponed delivery as a temporary substitute for settlement. On the second business day after the subscription date, TDCC, based on notification from the TWSE or TPEx, will deliver those beneficial certificates by book-entry transfer operation to the proprietary account or customer account under the securities firm's depository account, and then will transfer them from the proprietary account or customer account under the securities firm's depository account into the TWSE or TPEx settlement account, as a basis for conducting the operations to wind up the postponed delivery.
Article 9-1	The provisions of this Section apply mutatis mutandis to the in-kind creation operations for domestic-component-securities active ETF beneficial certificates.

Section 2 Operations for Cash Creation of ETF Beneficial Certificates and Active ETF Beneficial Certificates

Article 10	When a SITE or FTE conducts the operations to apply for registration and book-entry transfer of ETF beneficial certificates, the following procedures shall be followed: The TWSE or TPEx, based on the details of the SITE or FTE's creation order, will transmit the data media of the distribution lists of the securities for registration and delivery by book-entry transfer to TDCC. TDCC, based on the data media of the preceding subparagraph transmitted by the TWSE or TPEx, will compile the number of units and the amounts and then notify the SITE or FTE. The SITE or FTE, by 5:30 p.m. one business day before the book-entry delivery date, shall perform an "ETF Registration and Book-Entry Delivery/Cancellation Application" (transaction code A88; application type 2: creation), and after verifying the accuracy of the information shall notify TDCC (execution operation item 1: confirmation); if the check reveals any discrepancy, it shall immediately notify TDCC, and jointly investigate the reason with TDCC, the TWSE, or the TPEx and address the issue. The SITE or FTE shall notify its custodian of the amounts for which it is applying for registration and book-entry transfer. The custodian, by 5:30 p.m. one business day before the book-entry delivery date, shall perform an "ETF Creation/Redemption Amount Verification" (transaction code A69; application type 2: creation), to notify TDCC of the confirmed amount. After TDCC registers the issuance amount for that transaction, based on the SITE or FTE's and its custodian's confirmation notice, the SITE or FTE may apply to TDCC for issuance of a Certificate of Registration of Issuance in Dematerialized Form.
Article 11	In the book-entry transfer operations for cash creation of ETF beneficial certificates, the following procedures shall be followed: On the book-entry delivery date, TDCC, based on the notification from the TWSE or TPEx, will deliver those beneficial certificates to the proprietary account or customer account under the securities firm's depository account by book-entry transfer operation. On the book-entry delivery date, TDCC will compile a "Transfer List of ETF Beneficial Certificates" (STN17) and deliver it to the SITE or FTE. The securities firm may perform a "Transfer Transaction Details Query" (transaction code 167, query type 1), and print a "Transfer Transaction Details Query Form", and check the details of book-entry deliveries of securities – inward transfers of those beneficial certificates – on the current day. If the securities firm fails to perform settlement obligations on the book-entry delivery date, or if the SITE or FTE wishes to amend its registration and book-entry transfer application information and the data media of the distribution lists of the securities, the SITE or FTE shall submit an amendment application to TDCC for the debit operations of those beneficial certificates.
Article 11-1	The provisions of this Section apply mutatis mutandis to the cash creation operations for active ETF beneficial certificates.

Chapter 5 Redemption Operations

Section 1 Operations for In-Kind Redemption of Domestic-Component-Securities Securities Investment Trust ETF Beneficial Certificates and Domestic-Component-Securities Active ETF Beneficial Certificates

Article 12	When a securities firm, for its own account or on behalf of customers, conducts in-kind redemption of domestic-component-securities securities investment trust ETF beneficial certificates, the earmarking operations of the certificates shall be conducted in accordance with the following procedures: TDCC, based on notification from the TWSE or TPEx, shall perform the earmarking operations for the securities firm's or its customer's original holdings of those beneficial certificates, borrowed certificates, balance of those beneficial certificates bought on the business day preceding the redemption date, balance of those beneficial certificates bought on the redemption date, and those beneficial certificates from in-kind creation on the business day preceding the redemption date, and report the results of the earmarking to the TWSE or TPEx. After reviewing and verifying the redemption information, the SITE shall notify the TWSE or TPEx of any discrepancy in the redemption information, and then the TWSE or TPEx will notify TDCC, which will perform the operation to remove the earmark on those beneficial certificates in the proprietary account or customer account under the securities firm's depository account on the first business day after the redemption date. The securities firm may perform an "ETF Changes Details Query" (transaction code 346, query type 1), and print an "ETF Earmarking/Removal Details Query Form", to query the detailed information on the earmarking and removal of earmarking.
Article 13	In the operations for delivery of the securities portfolio for the in-kind redemption of domestic-component-securities securities investment trust ETF beneficial certificates, the following procedures shall be followed: The TWSE or TPEx, based on the details of the SITE's redemption order, will transmit to TDCC the data media containing the information on the cancellation of the beneficial certificates and the list of the portfolio of securities to be transferred. TDCC, based on the data media of the preceding subparagraph transmitted by the TWSE or TPEx, will compile the number of units and the amounts and then notify the SITE. The SITE, by 5:30 p.m. one business day before the cancellation date of the beneficial certificates, shall perform an "ETF Registration and Book-Entry Delivery/Cancellation Application" (transaction code A88; application type 3: redemption), and after verifying the accuracy of the information shall notify TDCC (execution operation item 1: confirmation); if the check reveals any discrepancy, it shall immediately notify TDCC, and jointly investigate the reason with TDCC, the TWSE, or the TPEx and address the issue. TDCC, based on the TWSE or TPEx's notice, will transfer the securities portfolio from the SITE's depository account at the custodian to the proprietary account or customer account under the securities firm's depository account on the cancellation date of the beneficial certificates. The securities firm may perform a "Transfer Transaction Details Query" (transaction code 167; query type 1) and print a "Transfer Transaction Details Query Form", to check the details of inward transfers of the securities portfolio. The custodian may perform a "Transfer Transaction Details Query" (transaction code 167, query type 2) and print a "Transfer Transaction Details Query Form" to check the details of outward transfers of the securities portfolio on the current day.
Article 14	In the operations for cancellation of beneficial certificates upon in-kind redemption of domestic-component-securities securities investment trust ETF beneficial certificates, the following procedures shall be followed: On the cancellation date of the beneficial certificates, based on notification from the TWSE or TPEx, TDCC will debit the balance of those beneficial certificates from the proprietary account or customer account under the securities firm's depository account. On the cancellation date of those beneficial certificates, TDCC will compile a "Transfer List of ETF Beneficial Certificates" (STN17) and deliver it to the SITE. The securities firm may perform an "ETF Changes Details Query" (transaction code 346, query type 2) and print an "ETF Transfer Details Query Form", to query the details of applications for redemption and cancellation of those beneficial certificates on the current day. On the cancellation date of those beneficial certificates, TDCC will compile a statement of changes in the securities balance and notify the SITE to confirm that the statement of the above is correct and to keep the statement for record.
Article 15	When a securities firm, on a single day, buys for its own account, or buys on behalf of a single customer account, a quantity of domestic-component-securities securities investment trust ETF beneficial certificates that is sufficient—or a quantity of those beneficial certificates that, with the addition of the original holdings of those beneficial certificates, borrowed certificates, the balance of those beneficial certificates bought one business day preceding the redemption date, and those beneficial certificates from in-kind creation one business day preceding the redemption date, is sufficient—to reach the requirements for in-kind redemption of the securities portfolio represented by those beneficial certificates, and sells the securities portfolio of those beneficial certificates, the following procedures shall be followed: If the securities firm, on a single day, buys for its own account, or buys on behalf of a single customer account, those beneficial certificates, and sells the securities portfolio represented by those beneficial certificates, it shall follow the procedures set out in this Section to apply for in-kind redemption operations on the same day. When, on the second business day after the redemption date, the securities firm has an insufficient balance in its account due to the sale of the securities portfolio represented by those beneficial certificates on the redemption date, the TWSE or TPEx will compile the details of postponed delivery as a temporary substitute for settlement. On the second business day after the redemption date, TDCC, based on notification from the TWSE or TPEx, will transfer the securities portfolio represented by those beneficial certificates from the SITE's depository account at the custodian to the proprietary account or customer account under the securities firm's depository account, and then will transfer the securities portfolio from the proprietary account or customer account under the securities firm's depository account to the TWSE or TPEx settlement account, as a basis for conducting the operations to wind up the postponed delivery.
Article 15-1	The provisions of this Section apply mutatis mutandis to the in-kind redemption operations for domestic-component-securities active ETF beneficial certificates.

Section 2 Operations for Cash Redemption of ETF Beneficial Certificates and Active ETF Beneficial Certificates

Article 16	When a securities firm, for its own account or on behalf of customers, conducts cash redemption of ETF beneficial certificates, the operations for earmarking of the beneficial certificates shall be conducted in accordance with the following procedures: TDCC, based on notification from the TWSE or TPEx, shall perform the operations for earmarking of the securities firm's and its customer's original holdings of those beneficial certificates, borrowed certificates, balance of those beneficial certificates bought on the business day preceding the redemption date, and those beneficial certificates from in-kind creation one business day preceding the redemption date, and report the results of the earmarking to the TWSE or TPEx. On the first business day after the redemption date, the SITE or FTE shall notify the TWSE or TPEx of any discrepancy after reviewing the redemption information, and then the TWSE or TPEx will notify TDCC, which will perform the operation to remove the earmark on the those beneficial certificates earmarked in the proprietary account or customer account under the securities firm's depository account. The securities firm may perform an "ETF Changes Details Query" (transaction code 346, query type 1), and print an "ETF Earmarking/Removal Details Query Form", to query the details of the earmarking and removal of earmarking.
Article 17	In the operations for cancellation of the beneficial certificates upon cash redemption of ETF beneficial certificates, the following procedures shall be followed: The TWSE or TPEx, based on the details of the SITE or FTE's redemption order, will transmit the data media containing the list of those beneficial certificates to be cancelled to TDCC. TDCC, based on the data media of the preceding subparagraph transmitted by the TWSE or TPEx, will compile the number of units and the amounts and then notify the SITE or FTE. The SITE or FTE, by 5:30 p.m. one business day before the cancellation date of those beneficial certificates, shall perform an "ETF Registration and Book-Entry Delivery/Cancellation Application" (transaction code A88; application type 3: redemption), and after verifying the accuracy of the information shall notify TDCC (execution operation item 1: confirmation); if the check reveals any discrepancy, it shall immediately notify TDCC, and jointly investigate the reason with TDCC, the TWSE, or the TPEx and address the issue. The SITE or FTE shall notify its custodian of the amounts of those beneficial certificates for which it is applying for cancellation. The custodian, by 5:30 p.m. one business day before the book-entry delivery date, shall perform an "ETF Creation/Redemption Amount Verification" (transaction code A69; application type 3: redemption), to notify TDCC of the amount confirmed. On the cancellation date of those beneficial certificates, based on notification from the TWSE or TPEx, TDCC will debit the balance of the ETF beneficial certificates or futures ETF beneficial certificates from the proprietary account or customer account under the securities firm's depository account. On the cancellation date of those beneficial certificates, TDCC will compile a "Transfer List of ETF Beneficial Certificates" (STN17) and deliver it to the SITE or FTE. The securities firm may perform an "ETF Changes Details Query" (transaction code 346, query type 2) and print an "ETF Transfer Details Query Form", to query the details of applications for redemption and cancellation of those beneficial certificates on the current day. On the cancellation date of those beneficial certificates, TDCC will compile a statement of changes in the securities balance and notify the SITE or FTE to confirm that the statement of the above is correct and to keep the statement for record.
Article 17-1	The provisions of this Section apply mutatis mutandis to the cash redemption operations for active ETF beneficial certificates.

Chapter 5-1 Operations for Split or Reverse Split

Article 17-2

When a SITE conducts the operations to apply for registration and book-entry transfer of a split or reverse split of securities investment trust ETF beneficial certificates or active ETF beneficial certificates or an FTE does so for a split or reverse split of futures ETF beneficial certificates, the SITE or FTE shall, by 5 p.m. two business days before the book-entry delivery date, submit the following materials electronically to TDCC:

Data media of distribution lists of the securities for registration and delivery by book-entry transfer.
A copy of the document of approval by the competent authority (must be affixed with the SITE's or FTE's original seal/signature-of-record).
Application for registration of the basic information of the ETF.
Public announcement of the issuance of replacement beneficial certificates in connection with the split or reverse split.

    TDCC will compile the number of units and the amounts based on the data media submitted by the SITE or FTE under subparagraph 1 of the preceding paragraph, and then notify the SITE or FTE. The SITE or FTE shall, by 5:30 p.m. two business days before the book-entry delivery date, perform an "ETF Registration and Book-Entry Delivery/Cancellation Application" (transaction code A88; application type 4: ETF split or 5: ETF reverse split), and after verifying the accuracy of the information shall notify TDCC (execution operation item 1: confirmation); if the check reveals any discrepancy, it shall immediately notify TDCC and jointly investigate the reason and address the issue.
    The SITE or FTE shall notify its custodian of the amount of the beneficial certificates for the book-entry transfer operation. The custodian shall, by 5:30 p.m. two business days before the book-entry delivery date, perform an "ETF Creation/Redemption Amount Verification" (transaction code A69; application type 4: ETF split or 5: ETF reverse split), to notify TDCC of the confirmed amount.
    Based on the confirmation notices of the SITE or FTE and its custodian, TDCC will immediately register the amounts of the post-split or post-reverse-split beneficial certificates, and issue a Certificate of Registration of Issuance in Dematerialized Form to the SITE or FTE. Additionally, based on the data media of the distribution lists prepared by the SITE or FTE of the securities for delivery by book-entry transfer operation, TDCC will, on the designated book-entry delivery date, debit the pre-split or pre-reverse-split beneficial certificates from the account, and deliver the post-split or post-reverse-split beneficial certificates by book-entry transfer operation to the proprietary account or customer account under the participant's depository account.

Chapter 6 Operations for Additional Listing of Beneficial Certificates in Another Foreign Currency

Section 1 Conversion Operations

Article 18

    When a securities firm, for its own account or on behalf of customers, conducts conversion between beneficial certificates and foreign currency-linked beneficial certificates, it shall, via the TWSE or TPEx, notify TDCC of the conversion information.
    TDCC, based on the notification from the TWSE or TPEx, after reviewing and verifying the accuracy of the information, will conduct the debit for the pre-conversion beneficial certificates, and the credit for the post-conversion beneficial certificates, and notify the TWSE or TPEx of the results of the conversion.
    After the conversion operations are completed, the securities firm may perform a "Foreign Currency Denominated Instruments Conversion Details Query" (transaction code K04), and print a "Securities Current-Day Conversion Application Details Query", to query the details of the conversion.

Article 19

After the securities firm has completed the conversion operations under the preceding article, the SITE may apply to TDCC for a Certificate of Conversion of Foreign Currency-Linked Beneficial Certificates.
TDCC will compile the details of the change and notify the SITE on the current day of the beneficial certificates conversion.

Section 2 Foreign Currency Fund Transfer Data Filing Operations

Article 19-1

When a participant or its customer obtains beneficial certificates in another currency, it shall open a foreign currency deposit account in that other foreign currency at a bank. The participant shall perform a "Fund Transfer Basic Data Filing” transaction (transaction code 159), input the foreign currency fund transfer account number data, and perform a "Trust/Discretionary Investment/English Account Name Maintenance" transaction (transaction code: 179), and input the English account name. TDCC, in accordance with Article 27, will provide the data to the SITE for its handling of earnings distributions and other fund transfer operations.

Chapter 7 Over-the-Counter Negotiated Trades

Article 20	When ETF beneficial certificates or active ETF beneficial certificates are traded outright through a negotiated trade between a customer and a participant, or between participants, the following procedures shall be followed: The TPEx will notify TDCC of the trade information on the trade date by batch. The seller may, on any of the trade date, the first business day after the trade date, or the second business day after the trade date, at the participant's location, submit a "Securities Negotiated Trade Book-Entry Account Transfer Certificate－Substitute for Voucher", stamped with its original seal/signature-of-record, and have the seller's participant perform an "OTC Negotiated Trade/Asset Swap/In-Kind Performance Transfer" (transaction code 235; transaction type 0: outright trade, asset swap, structured note in-kind performance, and contract-based warrant in-kind performance) to notify TDCC. After TDCC has compared and verified the trade information of which it was notified by the seller's participant against the TPEx information, TDCC will transfer those beneficial certificates from the proprietary or customer account under the depository account of the seller's participant to the proprietary or customer account under the depository account of the buyer's participant. The participant may perform a "Negotiated Sale Trade／Asset Swap／In-Kind Performance Outward Transfer Details Query" (transaction code 237) or "Negotiated Purchase Trade／Asset Swap／In-Kind Performance Inward Transfer Details Query" (transaction code 236), to query the negotiated trade outward transfer／inward transfer details of the applications. If the time of the account transfer notification from the participant is later than the second business day after the trade date, TDCC will not conduct the transfer. Additionally, TDCC, on the third business day after the trade date, will notify the TPEx of the details of what transfers have been made, or have not been made, by the participant.
Article 21	When bond component securities investment trust ETF beneficial certificates or bond component active ETF beneficial certificates are traded in a negotiated repo-style trade between a customer and a participant, or between participants, the following procedures shall be followed: The TPEx will notify TDCC of the trade information on the trade date by batch. The seller, on the trade date, at the participant's location, shall submit a "Securities Negotiated Trade Book-Entry Account Transfer Certificate－Substitute for Voucher", stamped with its original seal/signature-of-record, and have the seller's participant perform a "Negotiated Sale Trade／Asset Swap／In-Kind Performance Outward Transfer Details Query" (transaction code 237), and print a "Negotiated Trade Transaction／Asset Swap／In-Kind Performance Transfer Status Query Form", to query the status of TPEx trade information, and the following procedures shall be followed: If the TPEx has not yet notified TDCC of the trade information, it shall perform an "OTC Securities Negotiated Repo Transfer Notification" (transaction code 225; transaction type 1: repo-style sale) to notify TDCC. TDCC, based on the transaction code of the above, will first place a control on those beneficial certificates. After TDCC has received the trade information from the TPEx, and has compared and verified the information of which it was notified by the seller's participant, it will transfer those beneficial certificates from the proprietary or customer account under the depository account of the seller's participant to the proprietary or customer account under the depository account of the buyer's participant. If the TPEx has already notified TDCC of the trade information, it shall perform an "OTC Negotiated Trade/Asset Swap/In-Kind Performance Transfer" (transaction code 235; transaction type 1: repo-style sale) to notify TDCC. After TDCC has compared and verified the information of which it was notified by the seller's participant against the TPEx information, it will transfer those beneficial certificates from the proprietary or customer account under the depository account of the seller's participant to the proprietary or customer account under the depository account of the buyer's participant. The participant may perform a "Negotiated Repo-Style Sale Information Query" (transaction code 239) or a "Negotiated Repo-Style Purchase Information Query" (transaction code 238), to query the information regarding the repo-style sale ／purchase. If the time of the account transfer notification from the participant is later than the trade date, TDCC will not conduct the transfer. Additionally, TDCC on the first business day after the trade date, will notify the TPEx of the details of what transfers have been made, or have not been made, by the participant. Beneficial certificates that have been transferred as provided for in subparagraph 2 shall not be utilized before the repo-style trade matures or is terminated, unless the customer conducts transfer operations pursuant to Article 22.
Article 22	When the securities firm and the custodian conduct the operation to transfer the balance of a customer's repo-style trade of bond component securities investment trust ETF beneficial certificates or bond component active ETF beneficial certificates, the following procedures shall be followed: The customer shall, at the location of the securities firm or the custodian, compile a "Securities Negotiated Trade Book-Entry Account Transfer Certificate－Substitute for Voucher", stamped with its original seal/signature-of-record, and have the securities firm or the custodian perform an "OTC Negotiated Trade/Asset Swap/In-Kind Performance Transfer" (transaction code 235; transaction type 5: repo transfer) to notify TDCC. When TDCC receives the notification from the securities firm or custodian, it will immediately conduct the transfer, and make the relevant entries in both accounts.
Article 23	When a negotiated repo-style trade of bond component securities investment trust ETF beneficial certificates or bond component active ETF beneficial certificates between a customer and a participant, or between participants, matures or is terminated, the following procedures shall be followed: The TPEx will notify TDCC of the trade information on the trade date by batch. The original buyer, at the participant's location, shall complete a "Securities Negotiated Trade Book-Entry Account Transfer Certificate－Substitute for Voucher", stamped with its original seal/signature-of-record, and have the original buyer's participant perform a "Negotiated Sale Trade／Asset Swap／In-Kind Performance Outward Transfer Details Query" (transaction code 237), and print a "Negotiated Trade Transaction／Asset Swap／In-Kind Performance Transfer Status Query Form", to query the status of TPEx trade information transmission, and the following procedures shall be followed: If the TPEx has not yet notified TDCC of the trade information, it shall perform an "OTC Securities Negotiated Repo Transfer Notification" (transaction code 225; transaction type 2: repo resale) to notify TDCC. After TDCC has received the trade information from the TPEx, and has compared and verified the information of which it was notified by the original buyer's participant, TDCC will transfer those beneficial certificates from the proprietary or customer account under the depository account of the original buyer's participant to the proprietary or customer account under the depository account of the original seller's participant. If the TPEx has already notified TDCC of the trade information, it shall perform an "OTC Negotiated Trade/Asset Swap/In-Kind Performance Transfer" (transaction code 235; transaction type 2: repo resale) to notify TDCC. After TDCC has compared and verified the information of which it was notified by the original buyer's participant against the TPEx information, it will transfer those beneficial certificates from the proprietary or customer account under the depository account of the original buyer's participant to the proprietary or customer account under the depository account of the original seller's participant. The participant may perform a "Negotiated Repo-Style Sale Information Query" (transaction code 239) or a "Negotiated Repo-Style Purchase Information Query" (transaction code 238), to query the information about the maturity or termination. If the time of the account transfer notification from the participant is later than the trade date, TDCC will not conduct the transfer. Additionally, TDCC, on the first business day after the trade date, will notify the TPEx of the details of what transfers have been made, or have not been made, by the participant.

Chapter 8 Supplementary Provisions

Article 24	Book-entry transfer operations shall be handled in accordance with the clearing and settlement methods adopted in trading on the centralized securities exchange market or over-the-counter market.
Article 25	The operations for the handling of out-trades and defaults shall be governed by the Operating Rules of the Taiwan Depository & Clearing Corporation and the Directions for the Handling by Participants of Book-Entry Operations for Day Trades, Out-Trades, Account Number Corrections, Failed Trades, and Defaults.
Article 26	Pledge and delivery operations shall be governed by the Operating Rules of the Taiwan Depository & Clearing Corporation and the Directions for the Handling by Participants of Book-Entry Transfer Operations for Pledge and Delivery of Securities
Article 27	The compilation of lists of beneficial owners of ETFs or active ETFs shall be governed by Articles 87, 89, and 90 of the Operating Rules of the Taiwan Depository & Clearing Corporation.
Article 28	A SITE or FTE may, based on actual need, submit an application by data media to TDCC, and conduct the provision of information of beneficial certificate owners to TDCC.
Article 29	For handling book-entry transfer operations for ETF beneficial certificates or active ETF beneficial certificates, TDCC will charge fees in accordance with its fee-charging standards.
Article 30	Any matters on which these Directions are silent shall be governed by the Operating Rules of the Taiwan Depository & Clearing Corporation and other applicable provisions.