Article 5

Issuers of call (put) warrants are rated as follows:
 On the last business day of each quarter, the TWSE may, according to the following principle, calculate the issuers' scores in each indicator of the turnover rate and quality of market making of the specific quarter:
 Score of each indicator of turnover rate: calculate the daily turnover rate of the transaction amount of each issuer in the particular quarter by dividing the daily transaction amount of each TWSE/TPEx listed warrant by the turnover rate of the transaction amount of the calculation day of the market value of the particular warrant of the day. The percentage rate number (hereinafter referred to as "PR Value") of such indicator of the issuer is the score of the indicator.
 Score of each indicator of quality of market making: calculate first the Standard Deviation of TWBIV, 1 divided by the Daily Price Difference Ratio of Buy and Sell minus the PR Value, and the PR Value of the Daily Best Buy Amount, of the warrants of the same object each day; then calculate the quarterly average value of the abovementioned three values of each type of issuer. The PR value of the quarterly average value of each indicator of the issuer is the score of each indicator, provided only TWSE/TPEx listings of each object that total 10 or more after deduction of those with no outstanding units on the preceding trading day are included in the calculation of the Daily Best Buy Amount.
 Issuers are classified into five classes, namely A, B, C, D and E based on their weighted score of the score of each indicator of turnover rate and the quality of market making, as below:
┌───┬──────────────────────────┐
│Class │Classification Standard │
├───┼──────────────────────────┤
│A │Weighted score of the indicators of turnover rate │
│ │and quality of market marking ≧ 0.70 point, and │
│ │weighted score of the indicator of the Standard │
│ │Deviation of TWBIV ≧ 0.21 point │
├───┼──────────────────────────┤
│B │Weighted score of the indicators of turnover rate │
│ │and quality of market marking ≧ 0.50 point, and │
│ │weighted score of the indicator of the Standard │
│ │Deviation of TWBIV ≧ 0.15 point │
├───┼──────────────────────────┤
│C │Not Class A, B, D or E │
├───┼──────────────────────────┤
│D │Weighted score of the indicators of turnover rate │
│ │and quality of market making < 0.20 point │
├───┼──────────────────────────┤
│E │Weighted score of the indicators of turnover rate │
│ │and quality of market making = 0 point │
└───┴──────────────────────────┘
Rating of an issuer will commence from the quarter after the end of a threemonth period from its initial issuance of call (put) warrants following the recognition of its call (put) issuer qualification by the competent authority, or commence from the following quarter where no issuance has taken place in the sixmonth period immediately prior to the date of issuance of call (put) warrants.

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