[English Translation]

ENFORCEMENT REGULATIONS FOR
SPECIAL PROVISIONS FOR TRADING REGULATIONS FOR FXDAILY FUTURES TRANSACTIONSTOKYO FINANCIAL EXCHANGE INC.

(This is an English translation of the Enforcement Regulations for Special Provisions for
Trading Regulations for FX Daily Futures Transactions, which original has been preparedin 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
Enforcement Regulations shall be decided in accordance with the Japanese language text.
Tokyo Financial Exchange Inc. (“TFX”) assumes no responsibility for accuracy,
correctness, or content of this English text.)

Enforcement Regulations forSpecial Provisions for Trading Regulations for FX Daily Futures Transactions

Table of Contents
Page
Article 1.
Article 2.

Purpose ..................................................................................................1
Period for Accepting Cancellation of Bids and Offers ..........................1

Article 3.
Article 4.
Article 5.

Particulars for Bids and Offers .............................................................. 1
Correction to Contents of Bid or Offer..................................................3
Application for Approval of FX Daily Futures Transaction for Error
Trade Correction, etc. ............................................................................4
Contract Prices, etc. under the Position Adjustment Program...............4

Article 6.

Article 6-2. Particulars for Application for Block Trade ..........................................6
Article 6-3. The Period for Notice of approval or disapproval for Block Trade ......10
Article 6-4. Period for Suspension of Block Trade ...................................................10
Article 7. Method Utilizing Information and Telecommunication Technology for
Notice to Customers ..............................................................................10
Article 8. Recordkeeping for Market Derivatives Transactions based on
Customer’s Order ..................................................................................11
Article 8-2. System of Preventing Possible Conflict of Interest Transactions ..........11
Article 9. Method Utilizing Information and Telecommunication Technology for
Notice to FX Daily Futures Trading Members ......................................12
SUPPLEMENTARY PROVISIONS

13

Appendix Contents of Record for Bids and Offers and Trading Results ...............14

Enforcement Regulations for
FX Special Provisions
Table of Contents

Article 1.

Purpose

These Enforcement Regulations set forth the matters to be prescribed ordesignated by the Exchange pursuant to the Trading Regulations and the Special
Provisions for Trading Regulations for FX Daily Futures Transactions (hereinafter called
the “FX Special Provisions”).

Article 2.

Period for Accepting Cancellation of Bids and Offers

2.1
Cancellation of bids or offers set forth in Article 5.6 of the FX Special Provisions
shall be acceptable during the period from the opening of the pre-open period to the closeof the Market Trading Period.
2.2
Whenever the Exchange deems it necessary, it may accept cancellation of bids
and offers during the hours designated by the Exchange from time to time in addition to
the period set forth in Article 2.1 above.

Article 3.

Particulars for Bids and Offers

The matters to be prescribed by the Exchange in connection with bids and offers
for FX Daily Futures contracts based on the market-making method pursuant to Article
20.9 of the FX Special Provisions shall be as follows.
(1)

Matching process of MM bids/offers and non-MM bids/offers
An MM bid or offer or a non-MM bid or offer shall be processed in the
FX/Equity Index Trading and Clearing System in the manner set forth
below. In this case, an MM bid/offer shall be processed within a rangeof the volume of the corresponding non-MM bid/offer and a non-MM
bid/offer shall be processed within a range of the volume of thecorresponding MM bid/offer.
(a)When a non-MM bid is submitted at a price higher than the priceof any of the MM offers then submitted, the non-MM bid shallbe processed as a non-MM bid corresponding to the respective
MM offer so far submitted, subject to the price limit set on the

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non-MM bid.
(b)

When a non-MM offer is submitted at a price lower than theprice of any of the MM bids then submitted, the non-MM offer
shall be processed as a non-MM offer corresponding to therespective MM bid so far submitted, subject to the price limit set
on the non-MM offer.

(c)When an MM bid is submitted at a price higher than the price of
any of the non-MM offers then submitted, the MM bid shall beprocessed as an MM bid corresponding to the respective
non-MM offer so far submitted, subject to the price limit set on
the MM bid.

(d)

When an MM offer is submitted at a price lower than the priceof any of the non-MM bids then submitted, the MM offer shallbe processed as an MM offer corresponding to the respective
non-MM bid so far submitted, subject to the price limit set on
the MM offer.

(2)

IC (Immediate and Cancel) under which a bid or offer becomes null andvoid if the bid or offer is not matched for its entire volume
simultaneously with the submission of the bid or offer, and theunmatched portion of the bid or offer becomes null and void if the bid oroffer is matched in part only simultaneously with the submission of thebid or offer, may be applied to any limit order, except those accepted in apre-open period.

(3)

OCO (One Cancels the Other) under which, if one of the bid or offer
combined with the other bid or offer is matched in part only, the volume
of such other bid or offer is decreased by the volume so matched, may be
applied to each bid or offer in the combination set forth below.
(a)Combination of a limit offer and a trigger market offer in thesame volume(b)
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Combination of a limit bid and a trigger market bid in the same2

volume(4)

Expiration of a bid or offer
A bid or offer inputted into the FX/Equity Index Trading and Clearing
System which remains unmatched shall remain effective throughout the
duration designated as to the bid or offer, with the exceptions provided
for in (a) through (d) below; provided, however, that, when FX Daily
Futures transactions are suspended pursuant to any Item of Article 14 of
the Trading Regulations, the expiry of the bid or offer may be designatedby the Exchange from time to time.
(a)

An MM bid or offer shall become null and void at the close of
the Market Trading Period of the trading day on which it is
inputted into the FX/Equity Index Trading and Clearing System.

(b)

An IC market order and a bid or offer to which IC is applied
shall become null and void immediately, if there is nocorresponding MM bid or offer when the IC market order isinputted into the FX/Equity Index Trading and Clearing System.

(c)

A loss-cut order shall become null and void at the close of theMarket Trading Period of the trading day on which it is inputted
into the FX/Equity Index Trading and Clearing System.

(d)With respect to a bid or offer whose duration includes an
Exchange Holiday as defined in Article 6.1 of the FX Special
Provisions or an ad hoc holiday as defined in Article 6.2 thereof,
the bid or offer shall become null and void at the close of theMarket Trading Period of the trading day immediately preceding
the Exchange Holiday or ad hoc holiday whichever falls firstafter the submission of the bid or offer.

Article 4.

Correction to Contents of Bid or Offer

4.1
Correction to the inputted contents pursuant to Article 23.3 of the FX Special
Provisions shall be made in the following manner.
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(1)

Correction to a bid or offer
The concerned FX Daily Futures Trading Member shall cancel the bid oroffer and then input a correct bid or offer in accordance with Article 20 of
the FX Special Provisions.

(2)

Correction of the volume for a bid or offer(a)Decrease of the volume
The bid or offer shall be cancelled to the extent of the volume of
reduction.

(b)

Increase of the volume
The bid or offer shall be cancelled in its entire volume and thena new bid or offer shall be inputted in a correct volume inaccordance with Article 20 of the FX Special Provisions.

4.2
Notwithstanding the provision of Item (a) of Article 4.1(2) above, if a trigger
order is matched in part, the volume of the unmatched portion of the said trigger ordershall be cancelled entirely and a new trigger order or new multiple trigger orders shall be
inputted in a correct volume in accordance with Article 20 of the FX Special Provisions.

Article 5.

Application for Approval of FX Daily Futures Transaction forError Trade Correction, etc.

If an FX Daily Futures Trading Member intends to obtain the Exchange’s
approval for Error Trade Correction pursuant to Article 19 of the Trading Regulations, the
FX Daily Futures Trading Member shall submit a specified form of application to the
Exchange not later than the close of the Market Trading Period of the trading day on which
the Error Trade or other event in question has occurred.

Article 6.

Contract Prices, etc. under the Position Adjustment Program

6.1
The contract price of an FX Daily Futures contract on a specific trading day under
the position adjustment program set forth in Article 26.1 of the FX Special Provisions shall
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be equal to the relevant FX settlement price as set forth in Article 90-2.1 of the Clearing
Regulations on the same trading day.
6.2
With respect to FX Daily Futures contracts to be executed under the position
adjustment program, their volume to be prescribed by the Exchange for each FX Market
Maker pursuant to Article 26.2 of the FX Special Provisions shall be as follows.
(1)

When the total volume of all the FX Market Makers’ MM short positions(meaning the “MM short position” defined in Article 26.1 of the FX
Special Provisions; the same interpretation shall apply hereinbelow)
exceeds the total volume of all the FX Market Makers’ MM longpositions (meaning the “MM long position” defined in Article 26.1 of the
FX Special Provisions; the same interpretation shall apply hereinbelow)
at the close of the Market Trading Period of a specific trading day(a)

For an FX Market Maker holding an MM short position
The volume calculated by allocating the total volume of all the
FX Market Makers’ MM long positions to the respective FX
Market Maker in proportion to the volume of its MM shortposition(s)

(b)

(2)

For an FX Market Maker holding an MM long position
The volume of MM long position(s) held by the respective FX
Market Maker

When the total volume of all the FX Market Makers’ MM short positions
falls below the total volume of all the FX Market Makers’ MM longpositions at the close of the Market Trading Period of a specific tradingday(a)

For an FX Market Maker holding an MM short position
The volume of MM short position(s) held by the respective FX
Market Maker(b)

For an FX Market Maker holding an MM long position
The volume calculated by allocating the total volume of all the
FX Market Makers’ MM short positions to the respective FX

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5Market Maker in proportion to the volume of its MM longposition(s)6.3
Matters that the Exchange considers necessary to stipulate in connection with thecalculation of the proportionately allocated volumes under Article 6.2(1)(a) or 6.2(2)(b)above shall be prescribed by the Exchange from time to time.

Article 6-2.

Particulars for Application for Block Trade

The matters to be prescribed by the Exchange in connection with block tradepursuant to Article 26-3.2 of the Trading Regulations for FX Daily Futures Transactions
shall be as follows.
(1)

Method of application
An FX Daily Futures Trading Member shall apply for a block trade by
inputting the following information into the FX/Equity Index Trading andClearing System through the Member’s terminal device.
(a)Name of the applicant FX Daily Futures Trading Member(b)Type of FX Daily Futures Transactions

(c)

Price

(d)

Volume designated for the relevant bid or offer(e)Whether for a customer account or for a house account for thesale contract or purchase contract(f)

The counterparty FX Daily Futures Trading Member (if theapplicant FX Daily Futures Trading Member intends to executethe block trade with another FX Daily Futures Trading Member)(g)

The account number of FX Daily Futures Trading Member forthe sale contract or purchase contract

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(2)

Restriction on pricing
The price listed in (c) of Item (1) above shall be in a fair and reasonableamount to be determined based on the trading situation at the Exchange at
the time of the block trade application.

(3)

Minimum volume
The volume of FX Daily Futures contract which shall be executed at a
block trade shall be those set forth in the following table:
Type of
FX Daily Futures Transactions

VolumeU.S. Dollar-Japanese Yen FX Daily not less than five hundred (500)
Futures contracts
times the trading unit
Euro – Japanese Yen FX Daily not less than five hundred (500)
Futures contracts

times the trading unit

British Pound – Japanese Yen FX not less than five hundred (500)
Daily Futures contracts
times the trading unit
Australian Dollar – Japanese Yen FX not less than five hundred (500)
Daily Futures contracts
times the trading unit
Swiss Franc – Japanese Yen FX not less than five hundred (500)
Daily Futures contracts
times the trading unit
Canadian Dollar – Japanese Yen FX not less than five hundred (500)
Daily Futures contracts

times the trading unit

New Zealand Dollar – Japanese Yen not less than five hundred (500)FX Daily Futures contracts
times the trading unit
South African Rand – Japanese Yen not less than three hundred (300)
FX Daily Futures contracts
times the trading unit
Turkey Lira – Japanese Yen FX not less than three hundred (300)
Daily Futures contracts
times the trading unit
Norwegian Krone – Japanese Yen not less than three hundred (300)
FX Daily Futures contracts
times the trading unit
Hong Kong Dollar – Japanese Yen not less than three hundred (300)
FX Daily Futures contracts
times the trading unit

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Swedish Krona – Japanese Yen FX not less than three hundred (300)
Daily Futures contracts
times the trading unit
Mexican Peso – Japanese Yen FX not less than three hundred (300)
Daily Futures contracts
times the trading unit
Polish Zloty – Japanese Yen FX not less than three hundred (300)
Daily Futures contracts
times the trading unit
Chinese Yuan–Japanese Yen FX not less than three hundred (300)
Daily Futures contracts
times the trading unit
Korean Won–Japanese Yen FX Daily not less than three hundred (300)
Futures contracts
times the trading unit
Indian Rupee–Japanese
Daily Futures contracts

Yen

FX not less than three hundred (300)times the trading unit

Euro – U.S. Dollar FX Daily Futures not less than five hundred (500)contracts
times the trading unit
British Pound – U.S. Dollar FX not less than three hundred (300)
Daily Futures contracts
times the trading unit
British Pound – Swiss Franc FX not less than three hundred (300)
Daily Futures contracts

times the trading unit

U.S. Dollar – Swiss Franc FX Daily not less than three hundred (300)
Futures contracts
times the trading unit
U.S. Dollar – Canadian Dollar FX not less than three hundred (300)
Daily Futures contracts
times the trading unit
Australian Dollar – U.S. Dollar FX not less than three hundred (300)
Daily Futures contracts
times the trading unit
Euro – Swiss Franc FX Daily Future not less than three hundred (300)contracts

times the trading unit

Euro – British Pound FX Daily not less than three hundred (300)
Futures contracts
times the trading unit
New Zealand Dollar – U.S. Dollar not less than three hundred (300)
FX Daily Futures contracts
times the trading unit
Euro – Australian Dollar FX Daily not less than three hundred (300)
Futures contracts
times the trading unit
British Pound – Australian Dollar FX not less than three hundred (300)
Daily Futures contracts
times the trading unit
U.S. Dollar －Japanese Yen FX
Daily Futures contracts (Large)

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not less than three fifty (50) times the
trading unit(4)Euro – Japanese Yen FX Daily
Futures contracts (Large)

not less than three fifty (50) times the
trading unit

British Pound – Japanese Yen FX
Daily Futures contracts (Large)

not less than three fifty (50) times the
trading unit

Australian Dollar – Japanese Yen FX
Daily Futures contracts (Large)

not less than three fifty (50) times the
trading unit

Euro – U.S. Dollar FX Daily Futurescontracts (Large)

not less than three fifty (50) times the
trading unit

Conditions for approval
If the Exchange confirms that the application submitted by an FX
Daily Futures Trading Member satisfies all of the following conditions, theExchange shall approve execution of the FX Daily Futures contract basedon the contents of such application.
(a)All of the information set forth in Item (1) above are clearlyspecified in the application.

(5)

(b)

The price set forth in (c) of Item (1) above is the price set forthin Item (2) above.

(c)

The minimum volume requirement set forth in Item (3) above
shall be satisfied.

(d)

It is not obviously inappropriate in any other respects to allow
execution of the FX Daily Futures contract based on theapplication.

Notice of approval or disapproval
If the Exchange approves execution of the FX Daily Futures contract
pursuant to Item (4) above, the Exchange shall communicate its approval ordisapproval to the applicant FX Daily Futures Trading Member. If the
Exchange fails to give a notice of either approval or disapproval by theclose of the evening session of the business day on which the application is
submitted to the Exchange, the Exchange shall be deemed to have

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disapproved the application.

Article 6-3.

The Period for Notice of approval or disapproval for Block
Trade

The period to be prescribed by the Exchange pursuant to Article 26 -5.4 of
the Trading Regulations for FX Daily Futures Transactions shall be within ten (10)minutes from the execution of such contract in principle.

Article 6-4.

Period for Suspension of Block Trade

A block trade shall be suspended in the case listed in any Item of Article 26 -7of the Trading Regulations for FX Daily Futures Transactions for a period deemednecessary by the Exchange from time to time.

Article 7.

Method Utilizing Information and Telecommunication
Technology for Notice to Customers

7.1
The method separately prescribed by the Exchange referred to in Article 30 of the
FX Special Provisions shall be any one of the methods set forth in Item (1) or (2) below.
(1)

An electronic data processing and network organization as set forth in
Item (a) or (b) below shall be utilized.
(a)Transmission will be made via telecommunication lines
connecting computers used by an FX Daily Futures Trading
Member and those used by an FX Daily Futures Customer andthe contents so transmitted will be recorded into files stored in
the computers used by a recipient.

(b)

The matters recorded into files stored in the computers used by
an FX Daily Futures Trading Member that would otherwise be
described in the notice referred to in Article 30 of the FX Special
Provisions will be made available for access by an FX Daily

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Futures Customer via telecommunication lines and those matterswill be downloaded into files stored in the computers used by
the FX Daily Futures Customer.
(2)

The matters that would otherwise be described in the notice referred to in
Article 30 of the FX Special Provisions shall be recorded into such files
that will be controlled by magnetic disc, CD-ROM or any otherequivalent media capable of reliably recording some contents, and therecording media containing such files shall be dispatched.

7.2
Each of the methods set forth in Article 7.1 above shall be the one enabling an FX
Daily Futures Customer to output the contents recorded into the files in paper form.
7.3
An “electronic data processing and network organization” referred to in Article
7.1(1) above means an electronic data processing and network organization connecting
computers used by an FX Daily Futures Trading Member and those used by its FX Daily
Futures Customer by means of telecommunication lines.

Article 8.

Recordkeeping for Market Derivatives Transactions based on
Customer’s Order

8.1
The records to be prescribed by the Exchange pursuant to Article 31 of theTrading Regulations for FX Daily Futures Transactions shall be the Record of bids andoffers and trading results acquired from the Member’s terminal device.
8.2
The records set forth in Article 8.1 above shall record the matters set forth inAppendix “Contents of Record for bids and offers and trading results” attached hereto.
8.3
An FX Daily Futures Trading Member may keep the records set forth in Article
8.1 above in the form of output or onto a microfilm, floppy disk or any other electronic
media.
8.4

The records set forth in Article 8.1 above shall be kept for five (5) years.

Article 8-2.

System of Preventing Possible Conflict of Interest Transactions

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The system which an FX Daily Futures Trading Member who acts as FX Market
Maker and who also undertakes brokerage service as Non-FX Market Maker is required toestablish and maintain for the purpose of preventing possible conflict of interest
transactions and other unfair transactions under Article 12-2 of the FX Special Provisions
shall be as follows.
(1)

A system which separates its business section in charge of FX
market-making from that in charge of the brokerage service undertaken
by it

(2)

A system which separates its officer and other persons in charge of FX
market-making from those in charge of the brokerage service undertaken
by it

(3)

A system which physically and systematically separates management ofcustomer information related to FX Daily Futures contracts between its
business section in charge of FX market-making and that in charge of thebrokerage service undertaken by it(4)

Article 9.

Other system which the Exchange determines necessary to establish andmaintain

Method Utilizing Information and Telecommunication
Technology for Notice to FX Daily Futures Trading Members

9.1
The method separately prescribed by the Exchange referred to in Article 32 of the
FX Special Provisions shall be any one of the methods set forth in Item (1) or (2) below.
(1)

An electronic data processing and network organization as set forth in
Item (a) or (b) below shall be utilized.
(a)Transmission will be made via telecommunication lines
connecting computers used by the Exchange and those used by
an FX Daily Futures Trading Member and the contents sotransmitted will be recorded into files stored in the computers

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used by a recipient.
(b)

(2)

The matters recorded into files stored in the computers used by
the Exchange that are set forth in the Appendix attached to the
FX Special Provisions will be made available for access by an
FX Daily Futures Trading Member via telecommunication lines
and those matters will be downloaded into files stored in thecomputers used by the FX Daily Futures Trading Member.

The matters that would otherwise be described in the notice referred to in
the Appendix attached to the FX Special Provisions shall be recorded intosuch files that will be controlled by magnetic disc, CD-ROM or any otherequivalent media capable of reliably recording some contents, and therecording media containing such files shall be dispatched.

9.2
An “electronic data processing and network organization” referred to in Article
9.1(1) above means an electronic data processing and network organization connecting
computers used by the Exchange and those used by an FX Daily Futures Trading Member
by means of telecommunication lines.

SUPPLEMENTARY PROVISIONS
The amended regulations shall take effect as from August 1, 2011.

SUPPLEMENTARY PROVISIONS
The amended regulations shall take effect as from November 18, 2019.

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Appendix

Contents of Record for Bids and Offers and Trading Results
Matters to be recorded (Article 8)

1.
2.
3.
4.

Types of FX Daily Futures contracts
Distinction of sale/purchase contract
Price (and the fact that it is based on an IC market order, trigger market order orloss-cut order, if applicable)
Trigger price, if applicable

5.
6.
7.
8.
9.
10.

Volume of a bid or offer
Date and time of acceptance of an order
Order code number
Fact that it is based on an FX Daily Futures Customer’s order
Fact that it is a block trade, if applicable
Type(s) of modifier(s), if any

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