Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 1

Securities Systems* have a primary responsibility to their users** and other stakeholders. They must provide effective low cost processing. Services should be priced equitably.

* Securities Systems = depositories, settlement and clearing systems
** Users = customers of the securities system, and all other parties to whom the securities system owes a duty of care

1.	Is the board that governs the depository answerable to its users?	Yes. The board of TSCD is drawn from shareholders.
2.	Does any single organisation, or sector (e.g. brokers, custodians, Stock Exchange) have a large voting position at the board of the depository?	Yes. Taiwan Stock Exchange is our major shareholder who holds 55% shares of TSCD.
3.	Is there cross subsidisation of products (e.g. international services subsidised by local ones or transaction costs subsidised by asset servicing charges)?	The primary source of income of TSCD is derived from book-entry clearing and settlement fee.
4.	What process is in place at the depository to ensure that it meets the needs of all its stakeholders (e.g. institutions, broker dealers, retail investors, issuers)?	The board meets monthly to ensure the services provided by TSCD satisfy the needs of shareholders.
5.	What is the communications strategy of the depository to its stakeholders and how is this run?	There are service hotlines established for investors and participants. There is also TSCD web site which provides information of regulations, operations and research reports to the public.