Article 1
To engage in financial derivatives transaction for the Labor Pension Fund, the Labor Retirement Fund and the Labor Insurance Fund (hereinafter referred to as the Funds), this Directions for Derivatives Transaction (hereinafter referred to as the Directions) is hereby stipulated in accordance with the regulations: Paragraph 2, Article 6 of the Regulations of the Labor Pension Act on the Labor Pension Fund Management/Utilization and Profit/Loss Allocation, Paragraph 2, Article 9 of the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, and Paragraph 2, Article 9 of the Management and Application Rules for the Labor Insurance Fund.

Article 5
The derivatives transaction markets and the Derivatives transaction items shall be traded only through financial institutions approved by the local financial, securities, futures competent authorities.
If the Funds transacts in an OTC market, the credit rating of the trading counterparty shall comply with one of the following levels:
(1) Its long-term debt credit rating shall be at least "BBB-" by Standard & Poor’s Corp.
(2) Its long-term debt credit rating shall be at least "Baa3" by Moody’s Investors Service;
(3) Its long-term debt credit rating shall be at least "BBB-" by Fitch Ratings Ltd.
(4) Its long-term debt credit rating shall be at least "twBBB-" by Taiwan Ratings Corporation
(5) Its long-term debt credit rating shall be at least "BBB-(twn)" by Fitch Australia Pty Ltd, Taiwan Branch.

Article 6
As to the derivatives transaction for the purpose of non-hedging, the maximum transaction amount shall not increase the financial leverage of the Funds.