[English Translation]

FX EXCHANGE MARGIN SETTLEMENT REGULATIONSTOKYO FINANCIAL EXCHANGE INC.

(This is an English translation of the FX Exchange Margin Settlement Regulations, which
original has been prepared in the Japanese language only. The Japanese language text
hereof shall govern for all purposes and in all respects. Accordingly, all questions that
may arise within or without courts of law in regard to the meaning of the words, provisions
and stipulations of these Regulations shall be decided in accordance with the Japanese
language text. Tokyo Financial Exchange Inc. (“TFX”) assumes no responsibility for
accuracy, correctness, or contents of this English text.)

FX Exchange Margin Settlement Regulations

Table of Contents
Page
CHAPTER I. GENERAL PROVISIONS........................................................................... 1
Article 1.
Purpose ..................................................................................................... 1
Article 2.
Monies to be Settled ................................................................................. 1
CHAPTER II. DESIGNATION OF SERVICE OFFICE OF FX EXCHANGE MARGIN
SETTLEMENT BANK ............................................................................... 1
Article 3.
Designation of Service Office of FX Exchange Margin Settlement Bank2
Article 4.
Establishment of FX Exchange Margin Settlement Account ................... 2
Article 5.
Change in Registered Matters .................................................................. 2
Article 6.
Closure of FX Exchange Margin Settlement Account due to Revocationof Designated Service Office ......................................................................................... 2
CHAPTER III. SETTLEMENT OF FX EXCHANGE MARGINS................................... 3
Article 7.
Notice of FX Exchange Margin to Daily Futures Clearing Member ....... 3
Article 8.
Deadline for Payment by Daily Futures Clearing Member ...................... 7
Article 9.
Deadline for Notice of Disbursement of FX Exchange Margin to Daily
Futures Clearing Member and Deadline for Disbursement ........................................... 7
CHAPTER IV. HANDLING OF ADVERSE INCIDENTS ............................................... 8
Article 10. Communication Method upon Inability of Inter-account Transfer .......... 8
Article 11. Refusal of Payment to Daily Futures Clearing Member .......................... 8
CHAPTER V. MISCELLANEOUS PROVISIONS ........................................................... 9
Article 12.
Article 13.
Article 14.
Article 15.
Article 16.

Postponement of Deadline for Notice by the Exchange ........................... 9Documents for FX Exchange Margins ..................................................... 9
Determination of Necessary Matters, etc. .............................................. 10
Costs and Expenses ................................................................................ 10
Burden of Damages ................................................................................ 10

SUPPLEMENTARY PROVISIONS ................................................................................... 11

FX Exchange Margin
Settlement Regulations
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CHAPTER I.
GENERAL PROVISIONS

Article 1.

Purpose

1.1
These Regulations set forth necessary matters with respect to the manner ofpayment and receipt of FX Exchange Margins between the Exchange and a Daily
Futures Clearing Member who is an FX Daily Futures Trading Member pursuant to theregulations as follows: the Trading Regulations, the Special Provisions for Trading
Regulations and Brokering Terms for FX Daily Futures Transactions (hereinafter called
the “FX Special Provisions”), the Clearing Regulations, and the Regulations for Margin
and Unsettled Contracts for FX Daily Futures Transactions (hereinafter called the “FX
Margin Regulations”). The payments and receipts referred to in the preceding sentence
are hereinafter collectively called “FX Exchange Margin Settlement(s)”.
1.2
The manner separately prescribed by the Exchange specified in Article 4.1 of
the FX Margin Regulations shall be as set forth in Chapters II and III.

Article 2.

Monies to be Settled

The monies to be settled by the Exchange through an FX Exchange Margin
Settlement Bank (as defined in Article 3 hereof) shall be FX Exchange Margins.

CHAPTER II.
DESIGNATION OF SERVICE OFFICE OF
FX EXCHANGE MARGIN SETTLEMENT BANKFX Exchange Margin
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Article 3.

Designation of Service Office of FX Exchange Margin Settlement
Bank

The Exchange shall designate a service office (hereinafter called a “DesignatedService Office”) of a financial institution undertaking settlements of FX Exchange
Margins between the Exchange and each Daily Futures Clearing Member (hereinafter
called an “FX Exchange Margin Settlement Bank”).

Article 4.

Establishment of FX Exchange Margin Settlement Account

4.1
The Exchange shall establish a deposit account for settlement of FX Exchange
Margins in each Designated Service Office (hereinafter called the “FX Exchange Margin
Settlement Account”).
4.2
Each Daily Futures Clearing Member shall establish its FX Exchange Margin
Settlement Account in one of the Designated Service Offices.
4.3
Whenever a Daily Futures Clearing Member has established its FX Exchange
Margin Settlement Account, the Daily Futures Clearing Member shall register the samewith the Exchange in the form prescribed by the Exchange.

Article 5.

Change in Registered Matters

Whenever a Daily Futures Clearing Member intends to change any of thematters registered in the prescribed form set forth in Article 4.3 hereof, the Daily Futures
Clearing Member shall provide the Exchange with an advance written notice stating thematter(s) to be changed.

Article 6.

6.1

Closure of FX Exchange Margin Settlement Account due to
Revocation of Designated Service Office

Whenever the Exchange revokes the designation of any Designated Service

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Office, the Exchange shall immediately notify the Daily Futures Clearing Members
having their FX Exchange Margin Settlement Accounts with the said Designated Service
Office.
6.2
Each Daily Futures Clearing Member receiving a notice set forth in Article 6.1
above shall establish its FX Exchange Margin Settlement Account with another
Designated Service Office in accordance with Article 4.2 hereof before the revocation of
the concerned Designated Service Office takes effect. In this case, the Daily Futures
Clearing Member shall register such establishment with the Exchange in the form set
forth in Article 4.3 hereof.

CHAPTER III.
SETTLEMENT OF FX EXCHANGE MARGINSArticle 7.

Notice of FX Exchange Margin to Daily Futures Clearing Member

7.1
The Exchange shall notify each Daily Futures Clearing Member, by the time set
forth below on each trading day, of the amount of FX Exchange Margin to be deposited
with the Exchange by the Daily Futures Clearing Member. If a trading day on which a
notice would be made falls on a Japanese bank holiday, the notice shall be made on an
immediately subsequent trading day which is a Japanese banking day.
(1)

10:00 a.m.

(2)

2:30 p.m.

7.2
A Daily Futures Clearing Member receiving a notice set forth in Article 7.1
above from the Exchange shall deposit the FX Exchange Margin (except for those
relevant to the Securities, etc. Clearing-Brokering Contracts) with the Exchange in theamount calculated by the Exchange in accordance with Item (1) or (2) below, according
to the type of FX Daily Futures transaction made by the Daily Futures Clearing Member

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as an FX Daily Futures Trading Member.
(1)

Upon receipt of a notice set forth in Article 7.1(1) above, the sum of theamounts of (a) through (c) below shall be deposited.
(a)

FX Exchange Margins relevant to the Daily Futures Clearing
Member’s customer account positions, which shall be in theamount equal to the sum of the FX Exchange Margins asreported by the Daily Futures Clearing Member to the
Exchange pursuant to Article 6 of the FX Margin Regulations
for a period commencing at 2:30 p.m. of the previous trading
day and ending at the close of the same trading day’s Market
Trading Period(b)

FX Exchange Margins relevant to the Daily Futures Clearing
Member’s house account positions, which shall be in theamount set forth in paragraph a. or b. below:a.

The sum of the FX Exchange Margins for which the
Daily Futures Clearing Member declares depositing
with the Exchange for a period commencing at 2:30
p.m. of the previous trading day and ending at theclose of the same trading day’s Market Trading Periodb.

The sum of the FX Exchange Margins for the Daily
Futures Clearing Member’s house account positions
arising until the previous trading day for which
depositing is required, if the Daily Futures Clearing
Member fails to make a declaration set forth inparagraph a. above(c)

FX Exchange Margins relevant to the Daily Futures Clearing
Member’s advanced depositing, which shall be in the amountequal to the sum of the FX Exchange Margins for which the
Daily Futures Clearing Member is required to make advanced
depositing under Article 7 of the FX Margin Regulations

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(2)Upon receipt of a notice set forth in Article 7.1(2) above, the sum of theamounts of (a) and (b) below shall be deposited.
(a)

FX Exchange Margins relevant to the Daily Futures Clearing
Member’s customer account positions, which shall be in theamount equal to the sum of the FX Exchange Margins asreported by the Daily Futures Clearing Member to the
Exchange pursuant to Article 6 of the FX Margin Regulations
for a period commencing at the opening of the pre-open
period of the trading day on which the notice is made andending at 2:30 p.m.

(b)

FX Exchange Margins relevant to the Daily Futures Clearing
Member’s house account positions, which shall be in theamount equal to the sum of the FX Exchange Margins forwhich the Daily Futures Clearing Member declares depositing
with the Exchange for a period commencing at the opening of
the pre-open period of the trading day on which the notice ismade and ending at 2:30 p.m.

7.3
A Daily Futures Clearing Member receiving a notice set forth in Article 7.1
above from the Exchange shall deposit the FX Exchange Margin (except for those
relevant to the Securities, etc. Clearing-Brokering Contracts) with the Exchange in theamount calculated by the Exchange in accordance with each Item below, according to
the type of FX Daily Futures transactions made by the FX Daily Futures Non-Clearing
Member as an FX Daily Futures Trading Member whose Designated Clearing Member isthe said Daily Futures Clearing Member.
(1) Upon receipt of a notice set forth in Article 7.1(1) above, the sum of theamounts of (a) through (c) below shall be deposited.
(a) FX Exchange Margin relevant to the FX Margin Non-Clearing
Member’s customer account positions, which shall be in the amountequal to the sum of the FX Exchange Margins as reported by the FX
Margin Non-Clearing Member to the Exchange pursuant to Article 6.1

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of the FX Margin Regulations for a period commencing at 2:30 p.m. of
the previous trading day and ending at the close of the same trading
day’s Market Trading Period(b) FX Exchange Margins relevant to the FX Margin Non-Clearing
Member’s house account positions, which shall be in the amount set
forth in paragraph a. or b. below:a.

The sum of the FX Exchange Margins for which the FX
Margin Non-Clearing Member declares depositing with the
Exchange for a period commending at 2:30 p.m. of theprevious trading day and ending at the close of the same
trading day’s Market Trading Periodb.

The sum of the FX Exchange Margins for the FX Margin
Non-Clearing Member’s house account positions arising until
the previous trading day for which depositing is required, if
the FX Margin Non-Clearing Member fails to make adeclaration set forth in paragraph a. above(c) FX Exchange Margins relevant to the FX Margin Non-Clearing
Member’s advanced depositing, which shall be in the amount equal to
the sum of the FX Exchange Margins for which the FX Margin
Non-Clearing Member is required to make advanced depositing under
Article 7 of the FX Margin Regulations(2)

Upon receipt of a notice set forth in Article 7.1(2) above, the sum of theamounts of (a) and (b) below shall be deposited.
(a) FX Exchange Margins relevant to the FX Margin Non-Clearing
Member’s customer account positions, which shall be in the amountequal to the sum of the FX Exchange Margins as reported by the FX
Margin Non-Clearing Member to the Exchange pursuant to Article 6.1of the FX Margin Regulations for a period commencing at the openingof the pre-open period of the trading day on which the notice is madeand ending at 2:30 p.m.

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(b) FX Exchange Margins relevant to the FX Margin Non-Clearing
Member’s house account positions, which shall be in the amount equal
to the sum of the FX Exchange Margins for which the FX Margin
Non-Clearing Member declares depositing with the Exchange for aperiod commencing at the opening of the pre-open period of the
trading day on which the notice is made and ending at 2:30 p.m.

Article 8.

Deadline for Payment by Daily Futures Clearing Member

Each Daily Futures Clearing Member shall pay the amount according to a
notice as set forth in Article 7 hereof to the Exchange’s FX Exchange Margin Settlement
Account by the time set forth below on the trading day on which the notice is made (or,if it is a Japanese bank holiday, on the immediately subsequent trading day which is aJapanese banking day).
(1)

The deadline for the payment shall be 10:00 a.m. in the case of a notice
set forth in Article 7.1(1).

(2)

Article 9.

The deadline for the payment shall be 3:00 p.m. in the case of a notice
set forth in Article 7.1(2).

Deadline for Notice of Disbursement of FX Exchange Margin to Daily
Futures Clearing Member and Deadline for Disbursement

9.1
If the Exchange receives a claim for drawing of FX Exchange Margin pursuant
to Article 9.1 of the FX Margin Regulations in the form prescribed by the Exchange, theExchange shall notify the concerned Daily Futures Clearing Member of the amount to be
disbursed to the Daily Futures Clearing Member, which notice shall be made by 10:00
a.m. of the trading day (or, if it is a Japanese bank holiday, of the immediately
subsequent trading day which is a Japanese banking day) subsequent to the trading day
on which the claim for drawing is made.
9.2

By 10:00 a.m. of each trading day (or, if it is a Japanese bank holiday, on the

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immediately subsequent trading day which is a Japanese banking day), the Exchange
shall disburse the FX Exchange Margin in the amount equal to the sum of the amounts
set forth in Items (1) and (2) below to the FX Exchange Margin Settlement Accountregistered by the concerned Daily Futures Clearing Member under Article 4.3 hereof.
(1)

The amount of the FX Exchange Margins relevant to the notice madepursuant to Article 9.1 hereof by 10:00 a.m. of the same trading day’s
pre-open period(2)

The amount of the FX Exchange Margins set forth in the proviso to
Article 9.3 of the FX Margin Regulations for which the Exchange has
accepted the disbursement based on the Daily Futures Clearing
Member’s claim for drawing received by the Exchange by 10:00 a.m.
of the same trading day

CHAPTER IV.
HANDLING OF ADVERSE INCIDENTS

Article 10.

Communication Method upon Inability of Inter-account Transfer

If a Daily Futures Clearing Member who is obligated to pay the FX Exchange
Margin cannot remit or transfer the amount payable under Article 8 hereof, the Daily
Futures Clearing Member shall communicate such inability to the Exchange by
telephone by the time and date set as the deadline for the payment of the relevant FX
Exchange Margin and provide the Exchange with a written notice to the same effectimmediately after the telephonic communication.

Article 11.

Refusal of Payment to Daily Futures Clearing Member

If a Daily Futures Clearing Member who is a payee of FX Exchange Margin

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fails to pay or deposit to or with the Exchange the amount of any money that has becomedue in accordance with the Trading Regulations, the Special Provisions for Options, theFX Special Provisions, the Special Provisions for Trading Regulations for Equity Index
Daily Futures Transactions, the Clearing Regulations, the Regulations for Margin and
Unsettled Market Derivatives Contracts, the FX Margin Regulations, the Regulations for
Margin and Unsettled Contracts for Equity Index Daily Futures Transactions, theRegulations for Margin and Unsettled Contracts for FX Clearing Futures Transactions,
the Japanese Yen Settlement Regulations, the Equity Index Exchange Margin Settlement
Regulations, the FX Clearing Exchange Margin Settlement Regulations or theseRegulations, the Exchange may refuse to pay any FX Exchange Margin due and payable
to the Daily Futures Clearing Member.

CHAPTER V.
MISCELLANEOUS PROVISIONS

Article 12.

Postponement of Deadline for Notice by the Exchange

If it is difficult or impossible for the Exchange to make a notice by the time set
forth in Article 7 or 9 hereof due to failure in the Exchange System used for settlements
for FX Daily Futures transactions between the Exchange and each Daily Futures
Clearing Member or due to any other unavoidable event, the Exchange may postpone thesaid notice.

Article 13.

Documents for FX Exchange Margins

The documents set forth in Article 4.5 of the FX Margin Regulations shall be a
margin ledger and other documents that the Exchange considers to be necessary. Anyof such documents shall be promptly submitted to the Exchange whenever required by
the Exchange.

FX Exchange Margin
Settlement Regulations
9Article 14.

Determination of Necessary Matters, etc.

14.1
The Exchange may establish detailed rules to prescribe necessary matters otherthan those set forth herein or take other necessary steps in order to secure proper andreliable settlements for FX Exchange Margins.
14.2

Whenever the Exchange has prescribed any detailed rules or taken any step set
forth in Article 14.1 above, the Exchange shall notify the Daily Futures Clearing
Members to that effect without delay.

Article 15.

Costs and Expenses

A Daily Futures Clearing Member who has established an FX Exchange Margin
Settlement Account with a Designated Service Office shall bear the handling fees andother costs and expenses charged by the Designated Service Office and pay the same in
the manner and at the rate separately agreed upon between the Designated Service Officeand the Daily Futures Clearing Member.

Article 16.

Burden of Damages

16.1
The Exchange shall not be liable for any damage that may be incurred by a
Daily Futures Clearing Member due to any fault of the concerned FX Exchange Margin
Settlement Bank.
16.2
If a Daily Futures Clearing Member has failed to make settlement of FX
Exchange Margins by the deadline set forth herein, the Daily Futures Clearing Member
shall pay a default interest accrued on the amount due which shall be calculated per diem
based on a year of 365 days at the rate of 14% per annum.
16.3

Where a deadline for the settlement of FX Exchange Margins set forth herein isset as a specific time of a specific day, if a Daily Futures Clearing Member has failed tomake the settlement by that time, the Daily Futures Clearing Member shall pay a defaultinterest accrued for a period of delay including the full day on which the said deadline

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falls.

SUPPLEMENTARY PROVISIONS
The amended Regulations shall take effect as from October 1, 2010.

SUPPLEMENTARY PROVISIONS
The amended Regulations shall take effect as from February 27, 2017.

SUPPLEMENTARY PROVISIONS
The amended Regulations shall take effect as from April 12, 2021.

SUPPLEMENTARY PROVISIONS
The amended Regulations shall take effect as from March 20, 2023.

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