Announcement of Subsidiary’s Release

TOKYO, March 12, 2019 – Monex, Inc., a fully owned subsidiary of Monex Group, Inc., issued thefollowing press release today.

Attachment: Summary of Monex, Inc. press releaseMonex expands general margin trading services (indefinite period) by enabling investors to makeshort trades- Offering stock lending rate of 1.50% for the first six months -Akiko Kato
Atsushi Demoto, Yuki Nakano
Corporate Communications Office
Investor Relations, Financial Control Department
Monex Group, Inc.
Monex Group, Inc.
+81-3-4323-8698+81-3-4323-8698
This material is an English translation of a Japanese announcement made on the date above. Although the Company intended
to faithfully translate the Japanese document into English, the accuracy and correctness of this English translation is notguaranteed and thus you are encouraged to refer to the original Japanese document. This translation was made as a matter ofrecord only and does not constitute an offer to sell or to solicit an offer to buy securities in the U.S.
Contact:

Press ReleaseMonex expands general margin trading services (indefinite period)by enabling investors to make short trades- Offering stock lending rate of 1.50% for the first six months -TOKYO, March 12, 2019 - Monex, Inc. (Headquarters: Minato-ku, Tokyo; Representative Director:Oki Matsumoto) announced today its plan to enable investors to make short trades with an indefinite
repayment period tentatively starting the evening of Saturday, March 23, 2019, as part of thecompany’s general margin trading services.
 BackgroundMonex, Inc. has only offered long trades so far as part of its general margin trading (indefiniteperiod), but the company has decided to offer short trading in response to requests from customers.
In addition, Monex, Inc. will offer a stock lending rate of 1.50%, one of the lowest among the major
online brokers1, for six months from the start of the services until trades that are delivered on Friday,
September 27 (date tentative).
 Features(1) Short trades with no repayment period
Under the system margin trading terms, the repayment period is set for a maximum of sixmonths, but short trades under the general margin trading scheme do not have such a repayment
period2. Therefore, investors are able to trade without worrying about their open positions being
forced into settlement because of the repayment period3.
(2) No cost of negative interest per diem
The system margin trading terms sometimes generates additional costs, called “negative interest
per diem,” when there are increased needs for short trading as a result of news headlines andearnings announcements. The general margin trading, however, does not generate negativeinterest per diem because investors lend stocks without using securities finance companies.
Investors do not need to worry about additional costs to hold stocks for longer-term or tonecessitate hedge selling.
(3) Approximately 280 stocks available for short trades
At the start of the new service, which is currently planned to be implemented the evening ofSaturday, March 23, 2019, approximately 280 stocks will be available for short trades.
Overview of the margin trading4

Long/Short
Repayment
PeriodStockscovered

System Margin Trading

General Margin Trading

LongLong

Short

Short

Six months

Indefinite

Trading is possible only after eachexchange selects a particular stock as a“system margin trading stock.”

In principle, the trading is possible
from the first day of the stock getting
listed. (Short trades will be possibleMarginStocklending rate
Negativeinterest perDiemFee

2.80%

--

1.15%

Need to receive

after Monex, Inc. selects stocks to becovered.)
3.47%-

Need to pay-

1.505 %

Not applicable

Minimum 95 yen (excluding tax), depending on the trading course

Maximum
open position(total amount)

In principle, 1 billion yen at first6Notes:
1.

Major online brokerages include SBI Securities, Kabu.com Securities, Matsui Securities, Rakuten Securities andMonex, Inc. (As of March 12, 2019)2.

Investors need to be aware that Monex, Inc. may make forced repayment of the short trade open positions heldby investors after the next business day for the reasons attributable to the company.

3.

Investors need to be aware that Monex, Inc. may set the forced repayment period in events including delisting,share consolidation, merger, share exchange, share transfer and etc.

4.

Additional costs may be incurred that are not described in the overview of the services.

5.

The rate is applied to trades that are delivered by Friday, September 27 (tentative). The stock lending rate of6.

Different maximum amounts are applied for corporate clients and customers who use “Start Margin Trading”

2.00% will be charged on margin trade delivered after September 30.
services.

As outlined in “For Creative Minds,” a brand statement announced by Monex Group in November
2018, Monex, Inc. is committed to proposing innovative, “future finance,” with a creative mindset,
leveraging new ideas and perspectives that go beyond the traditional framework.

Contacts:

Maho Tsugawa, Toshiaki Koike
Public Relations Office, Monex, Inc.
+81-3-4323-3981

This material is an English translation of a Japanese announcement made on the date above. Although theCompany intended to faithfully translate the Japanese document into English, the accuracy andcorrectness of this English translation is not guaranteed and thus you are encouraged to refer to theoriginal Japanese document. This translation was made as a matter of record only and does not constitutean offer to sell or to solicit an offer to buy securities outside Japan.