1.Broadening the Scope for the Use of Funds Obtained by Securities Finance Enterprises from the Issuance of Commercial Paper

To meet the practical business needs of securities finance enterprises and increase their operational flexibility, the Financial Supervisory Commission issued an amendment to the Regulations Governing Securities Finance Enterprises on February 12th, 2018. The amendment allows the enterprises to use funds obtained from the issuance of commercial paper as working capital to conduct the types of business enumerated in Article 5, Paragraph 1 of the Regulations, such as extending stock secured loans.

2.Order Concerning the exemption from Article 150 of the Securities and Exchange Act when Leverage Transaction Merchants Engaging in Leverage Contract Trading Involving Taiwan equities settled by physical delivery of listed securities

On March 13th, 2018, the Financial Supervisory Commission issued Order No. 1070100686, which stipulates that when leverage transaction merchants engage in leverage contract trading involving Taiwan equities under the Regulations Governing Leverage Transaction Merchants, if the contracts are settled by physical delivery of listed securities in the leverage transaction merchant''s hedge account, such trades are exempted from the restriction of Article 150 of the Securities and Exchange Act, which requires that trading of listed securities should be conducted within a centralized securities exchange market operated by a stock exchange.