1
    These Operation Directions were established per 9 December, 2008 Letter No. Taiwan-Stock-Listing-VI - 0970063681 of the competent authority.

2
    Where a customer opens a margin account, the securities firm or securities finance enterprise shall further sign application documentation for extending the duration of each margin purchase and short sale on a blanket basis with such customer. The application documentation shall specify the number of extensions available to the customer for selection and the follow-up to the evaluation result regarding applications for extension upon expiration. Upon execution, the said documentation shall apply to each subsequent margin purchase and short sale; the customer shall not need to apply individually thereafter.

3
    If, prior to the implementation of these Operation Directions, a securities firm or securities finance enterprise fails to sign the application documentation for extension on a blanket basis with its customers, or the executed documentation do not cover the contents specified in the preceding paragraph, it shall request its customers to sign or re-sign the said documentation. Upon execution, the said documentation shall apply to each subsequent margin purchase and short sale.

4
    Where a customer seeks to amend the number of extensions permitted after executing application documentation for extension on a blanket basis with a securities firm or securities finance enterprise, it shall re-sign the application documentation for extension on a blanket basis with the securities firm or securities finance, and such documentation shall apply to each subsequent margin purchase and short sale upon execution. In the circumstance where the amendment is to reduce the number of extensions permitted and the margin purchase and short sale has been extended as requested, such margin purchase and short sale shall continue until the extension period expires.

5
    A securities firm or securities finance enterprise shall, prior to the expiry of the six months' period of each margin purchase and short sale, review a customer's credit status and shall notify the customer in writing ten business days prior to the expiry if it disagrees with the extension; no notification is required if the extension is approved. Extensions prior to the expiry of a one year's period shall be effected in the same manner.

6
    These Operation Directions shall be drafted by the TWSE along with the TPEx and take effect after having been submitted to and approved by the competent authority. Subsequent amendments thereto shall be effected in the same manner.