[English Translation]

CLEARING REGULATIONSTOKYO FINANCIAL EXCHANGE INC.

(This is an English translation of the Clearing Regulations, the original of which 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 orwithout courts of law in regard to the meaning of the words, provisions and stipulations ofthese Clearing 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.)

Clearing Regulations

Table of Contents
Page
CHAPTER I. GENERAL PROVISIONS ................................................................................. 1
Article 1. Purpose 1
Article 2. Underlying Contracts ...................................................................................... 1
Article 2-2. Exemption from Application concerning FX Daily Futures Contract,
Equity Index Daily Futures Contract and FX Clearing Futures Contract
Obligation Assumption Business ................................................................... 1
CHAPTER II. QUALIFICATION FOR CLEARING MEMBERS ...................................... 2
Section 1. General Provisions ........................................................................................... 2
Article 3. Clearing Members ........................................................................................... 2
Section 2. Acquisition of Clearing Membership ............................................................... 4
Article 4. Application for Clearing Membership and Admission thereto .................. 4
Article 5. Qualification Criteria for Clearing Membership ......................................... 5
Article 6. Time and Date of Acquisition of Clearing Membership .......................... 32
Article 7. Treatment of Unsettled Contract where Non-Clearing Member isadmitted to Clearing Membership ............................................................... 33
Section 3. Clearing Member’s Duties ........................................................................... 33
Article 8. Delivery of Written Oath .............................................................................. 33
Article 9. Clearing Member Representative ................................................................ 33
Article 9-2. Contact Office ................................................................................................ 34
Article 10. Limitation on Liabilities for Financial Instruments Obligation
Assumption Business .................................................................................... 34
Article 10-2. Limitation on Liabilities for Damages Arising from Use of Market
Facilities .......................................................................................................... 34
Article 10-3. Development of Risk Management System ............................................ 35
Section 4. Deregistration of Clearing Membership ........................................................ 35
Article 11. Application for Deregistration of Clearing Membership ......................... 35
Article 12. Market Derivatives Contracts involving Deregistering Clearing Member........................................................................................................... 36
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Article 13. Market Derivatives Contracts in cases of Merger or Consolidation ofClearing Membership Deregistration Applicant ........................................ 37
Article 13-2. Approval of Deregistration ........................................................................ 37
Article 13-2-2.
Approval of Deregistration of Interest Rate Futures Clearing
Membership .................................................................................................... 38
Article 13-3. Approval of Deregistration of FX Clearing Futures Clearing
Membership .................................................................................................... 39
Article 14. Public Notice and Notification of Deregistration of Clearing Membership........................................................................................................... 40

Article 14-2. Fulfillment of Obligations by Deregistering Clearing Member ............ 41
Article 14-2-2.
Name Transfer of Clearing Membership ..................................... 41
Article 14-2-3.
Clearing Membership Deregistration Fee ................................... 42
Article 14-2-4.
Application of these Clearing Regulations for Deregistering
Clearing Member ........................................................................................... 42
Section 4-2.
Investigation, etc. of Clearing Member .................................................. 42
Article 14-3. Notifiable Matters ....................................................................................... 43
Article 14-4. Reportable Matters ...................................................................................... 43
Article 14-5. Financial Reports......................................................................................... 48
Article 14-6. Investigation against Clearing Members .................................................. 49
Article 14-7. Exception regarding Notifications, etc. .................................................... 50
Section 5. Disciplinary or Regulatory Measures on Clearing Members ......................... 50
Sub-section 1. Disciplinary or Regulatory Measures ..................................................... 50
Article 14-8. Clearing Member Acting in Concert with or having Controlling
Relationship with its Director or Officer or other Person ........................ 50
Article 15 (Deleted) ......................................................................................................... 51
Article 15-2. Disciplinary Measures on Clearing Members ......................................... 51
Article 15-2-2.
Regulatory Measures for Inappropriate Controlling
Relationship, etc. of Clearing Member ....................................................... 56
Article 15-2-3.
Regulatory Measures for Defects in Risk Management System ..
........................................................................................................... 56

Article 15-3. Regulatory Measures on Insolvent or Potentially Insolvent Clearing
Member ........................................................................................................... 57
Article 15-3-2.
Regulatory Measures on Clearing Member who holds Excessive
Unsettled Contracts ....................................................................................... 59
Article 15-3-3.
Regulatory Measures on Clearing Member where the Status ofClearing Regulations
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Deposit of Security is Deemed Inappropriate ............................................ 60
Article 15-4. Lifting of Suspension from Assumption of Obligations Arising fromMarket Derivatives Transactions, etc. or other Regulatory Measures .... 60
Article 15-5. Objection, etc. .............................................................................................. 61
Article 15-6. Disciplinary Measures on Clearing Member under Statutory Sanctions .
........................................................................................................... 61

Article 15-7. Breach of Just and Equitable Principle of Trade ..................................... 62
Article 15-8. Recommendation to Clearing Members ................................................... 62
Sub-section 2. Effect of Disciplinary or Regulatory Measures ...................................... 63
Article 15-9. Market Derivatives Contracts for Suspended or Restricted Clearing
Member ........................................................................................................... 63
Article 15-9-2.
Unsettled FX Daily Futures Contracts of FX Market Maker onwhom Regulatory Measures Such as Suspension from Assumption of
Obligations are Taken.................................................................................... 64
Article 15-9-3.
Unsettled Equity Index Daily Futures Contracts of Equity
Market Maker on whom Regulatory Measures Such as Suspension from
Assumption of Obligations are Taken ......................................................... 66
Article 15-10.
Market Derivatives Contracts for Non-Clearing Member’s
Account in Relation to Suspended or Restricted Designated Clearing
Member ........................................................................................................... 68
Article 15-10-2.
Unsettled FX Clearing Futures Contracts of FX Clearing
Futures Clearing Member on which Regulatory Measures Such as
Suspension from Assumption of Obligations are Taken........................... 70
Article 15-10-3.
Early Termination ........................................................................... 72
Article 15-11.
Notification and Announcement of Disciplinary Measures, etc. ..
........................................................................................................... 73

CHAPTER III. SECURITIES, ETC. CLEARING-BROKERING CONTRACTS .......... 74
Article 15-12.
Underlying Contracts of Securities, etc. Clearing-Brokering
Contracts ......................................................................................................... 74
Article 16. Clearing Agreement ....................................................................................... 74
Article 17. Separate Accounting for Clearing by Designated Clearing Member...... 76
Article 18. Market Derivatives Contracts in case of Change in Designated Clearing
Member ........................................................................................................... 77
Article 19. Application for Approval of Termination of Clearing Agreement .......... 77
Article 20. Market Derivatives Contracts for Non-Clearing Member’s Account upon
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Termination of Clearing Agreement ............................................................ 77
CHAPTER IV. ASSUMPTION OF OBLIGATIONS ........................................................... 78
Section 1. Clearing of Market Derivatives Contracts ..................................................... 78
Article 21. Clearing of Market Derivatives Contracts .................................................. 79
Article 22. Exchange’s Assumption of Obligations arising from Market Derivatives
Contract ........................................................................................................... 79
Section 2. Clearing of L-T Link Positions ...................................................................... 80
Article 23. Clearing of L-T Link Positions .................................................................... 80
Article 24. Assumption of Obligations arising from L-T Link Positions between
Exchange and Clearing Member ................................................................. 81
Section 3. Clearing of Market Derivatives Contracts and L-T Link Positions for
Give-up........................................................................................................... 81
Article 24-2. Clearing of Market Derivatives Contracts and L-T Link Positions for
Give-up ........................................................................................................... 82
Article 25. Discharge and Creation of Market Derivatives Contract, Discharge of
Exchange’s and Executing Member’s Rights and Obligations, andAcquisition and Assumption of Rights and Obligations by Exchange andCarrying Member, in Relation to Give-up.................................................. 82
Article 26. Discharge and Creation of Option Contracts and Discharge and Arising,
etc. of Contractual Positions by Exchange, Executing Member andCarrying Member in Relation to Give-up .................................................. 83
CHAPTER V.

DUTY TO PERFORM OBLIGATIONS ARISING FROM MARKETDERIVATIVES CONTRACTS ................................................................................................... 84
Article 27. Liability of Exchange .................................................................................... 84
Article 28. Exchange’s Liability for Link ...................................................................... 84
Article 29. Treatment of Market Derivatives Contracts, etc. created as a Result of
Give-up ........................................................................................................... 84
CHAPTER VI. EXCHANGE MARGIN AND UNSETTLED MARKET DERIVATIVESCONTRACTS, ETC...................................................................................................................... 85
Article 30. Exchange Margin and Unsettled Market Derivatives Contracts, etc. ..... 85
CHAPTER VII. CLEARING DEPOSIT ................................................................................. 85
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Article 31. Delivery of Clearing Deposit ....................................................................... 86
Article 32. Amount of Clearing Deposit payable upon Admission to Clearing
Membership .................................................................................................... 87
Article 33. Change of Amount of Clearing Deposit ..................................................... 87
Article 34. (Deleted) ......................................................................................................... 88
Article 35. Replenishment of Clearing Deposits ........................................................... 88
Article 36. Refund of Clearing Deposits ........................................................................ 88
Article 37. Refund of Clearing Deposits upon Deregistration of Clearing
Membership .................................................................................................... 88
Article 38. Succession to Clearing Deposits upon Merger or Consolidation ............ 89
Article 39. Management and Investment of Clearing Deposits .................................. 89
CHAPTER VIII.
COMPENSATION FOR LOSSES FROM ASSUMPTION OF
OBLIGATIONS ............................................................................................................................. 90
Article 40. Compensation for Losses from Default of Interest Rate Futures Clearing
Member ........................................................................................................... 90
Article 40-2. Compensation for Losses from Default of Daily Futures Clearing
Member ........................................................................................................... 94
Article 40-3. Cooling Off Period for Interest Rate Futures .......................................... 96
Article 40-4. Special Provisions for Clearing Deposits during Cooling Off Period forInterest Rate Futures ...................................................................................... 97
Article 40-5. Special Purpose Cash Collateral for Interest Rate Futures .................... 98
Article 40-6. Deposit of Special Purpose Cash Collateral for Interest Rate Futures . 99
Article 40-7. Appropriation of Special Purpose Cash Collateral for Fulfillment of
Obligations Relating to Additional Clearing Contribution for Interest
Rate Futures .................................................................................................... 99
Article 41. Compensation for Other Losses from Assumption of Obligations ....... 100
CHAPTER VIII-II.
COMPENSATION FOR LOSSES FROM ASSUMPTION OF
OBLIGATIONS IN FX CLEARING FUTURES CONTRACTS ........................................ 101
Section 1. Establishment of Cooling Off Period ........................................................... 101
Article 41-2. Cooling Off Period .................................................................................... 101
Section 2. Compensation for Losses from Default of FX Clearing Futures Clearing
Member ........................................................................................................ 102
Article 41-3. Compensation for Losses by Deposit of Defaulting Clearing Member ...
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......................................................................................................... 102

Article 41-4. Compensation for Losses by Default Compensation Reserve ............ 103
Article 41-5. Compensation for Losses by Clearing Deposits of Other Clearing
Members ....................................................................................................... 103
Article 41-6. Special Provisions for Clearing Deposits during Cooling Off Period 104
Article 41-7. Compensation for Losses by First Additional Clearing Contribution for
FX Clearing Futures of Other Clearing Members ................................... 105
Article 41-8. Compensation for Losses by Second Additional Clearing Contribution
for FX Clearing Futures of Other Clearing Members as Payees of Cash
Settlement Variation .................................................................................... 106
Section 3. Special Collateral during Cooling Off Period .............................................. 107
Article 41-9. Special Purpose Cash Collateral ............................................................. 107
Article 41-10.
Deposit of Special Purpose Cash Collateral.............................. 107
Article 41-11.
Appropriation of Special Purpose Cash Collateral for
Fulfillment of Obligations Relating to Additional Clearing Contribution .
......................................................................................................... 108

CHAPTER IX. OFFSETTING TRANSACTIONS ............................................................. 108
Article 42. Offsetting Transactions ............................................................................... 108
Article 43. Offsetting Transaction by Non-Clearing Member ................................... 109
Article 44. Particulars for Offsetting Transactions ..................................................... 110
CHAPTER X. MARK-TO-MARKET .................................................................................. 110
Article 45. Daily Settlement Price ................................................................................ 111
Article 46. Adjustment based on Difference between Contract Price or Acceptance
Figure and Daily Settlement Price ............................................................. 111
Article 47. Adjustment based on Difference between Daily Settlement Prices ...... 112
Article 48. Amounts Payable for Mark-to-Market...................................................... 113
Article 49. Total Receivable Amount and Total Payable Amount ............................ 114
Article 50. Detailed Rules for Mark-to-Market ........................................................... 114
CHAPTER XI. FINAL SETTLEMENT ............................................................................... 115
Section 1. General Provisions ....................................................................................... 115
Article 51. Final Settlement ........................................................................................... 115
Article 52. Determination of Final Settlement Figure and Delivery Settlement Price

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115

Article 53. Detailed Rules for Final Settlement .......................................................... 116
Section 2. Three-month Euroyen Futures ..................................................................... 116
Article 54. Application of Provisions for Mark-to-Market ........................................ 116
Article 55. Determination of Final Settlement Figure ................................................ 116
Articles 56 through 68 (Deleted) .................................................................................... 117
Section 3.

Two-year ¥ Swapnote ™ ...................................................................... 117

Article 69. Application of Provisions for Mark-to-Market ........................................ 117
Article 70. Determination of Final Settlement Figure ................................................ 118
Section 4. Five-year ¥ SwapnoteTM............................................................................... 118
Article 71. Application of Provisions for Mark-to-Market ........................................ 119
Article 72. Determination of Final Settlement Figure ................................................ 119
Section 5. Seven-year ¥ Swapnote™ ............................................................................ 120
Article 73. Application of Provisions for Mark-to-Market ........................................ 120
Article 74. Determination of Final Settlement Figure ................................................ 120
Section 6. Ten-year ¥ SwapnoteTM .............................................................................. 121
Article 75. Application of Provisions for Mark-to-Market ........................................ 121
Article 76. Determination of Final Settlement Figure ................................................ 122
Section 7. Three-month TONA futures ......................................................................... 123
Article 76-2. Application of Provisions for Mark-to-Market ..................................... 123
Article 76-3. Determination of Final Settlement Figure ............................................. 123
Section 8. （Deleted） ................................................................................................. 124
Articles 76-4. and 76-5. (Deleted).................................................................................. 124
Section 9. (Deleted)....................................................................................................... 124
Articles 76-6. and 76-7(Deleted) .................................................................................... 124
CHAPTER XII.
SPECIAL PROVISIONS FOR OPTIONS ON THREE-MONTHEUROYEN FUTURES ............................................................................................................... 124
Section 1. Payment of Option Premium........................................................................ 125
Article 77. Payment of Option Premium ...................................................................... 125
Article 78. Amount to be Paid or Received ................................................................. 126

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Article 79. Total Receivable Amount and Total Payable Amount ............................ 126
Article 80. Regulations relating to Payment of Option Premium ............................. 126
Section 2. Offsetting Transactions ................................................................................ 127
Article 81. Offsetting Transactions ............................................................................... 127
Article 82. Offsetting Transactions by Non-Clearing Members ............................... 127
Article 83. Particulars for Offsetting Transactions ..................................................... 128
Section 3. Option Exercise ............................................................................................ 128
Article 84. Option Exercisable Period .......................................................................... 128
Article 85. Notification of Option Exercise ................................................................. 129
Article 86. Automatic Option Exercise ........................................................................ 130
Article 87. Assignment ................................................................................................... 130
Article 88. Decrease in Positions resulting from Option Exercise ........................... 131
Article 89. Three-month Euroyen Futures Contracts resulting from Option Exercise
and Assignment ............................................................................................ 132
Section 4. Daily Settlement Price ................................................................................. 134
Article 90. Determination of Daily Settlement Price.................................................. 134
CHAPTER XIII.
SPECIAL PROVISIONS FOR FX DAILY FUTURES
TRANSACTIONS ....................................................................................................................... 135
Section 1. FX Settlement Price ..................................................................................... 135
Article 90-2. FX Settlement Price .................................................................................. 135
Section 2. Rollover ........................................................................................................ 136
Article 90-3. Rollover ...................................................................................................... 136
Article 90-4. Initial FX Revaluation Profit or Loss ..................................................... 136
Article 90-5. Daily FX Revaluation Profit or Loss ...................................................... 137
Article 90-6. Swap Point ................................................................................................. 137
Section 3.
Settlement of FX Daily Futures Transaction ........................................ 137
Article 90-7. Settlement of FX Daily Futures Transaction ......................................... 138
Article 90-8. FX Variation ............................................................................................... 139
Article 90-9. Methods for Settlement of Positions....................................................... 140
Article 90-9-3.
Filing of Offsetting Notification Concerning FX Daily Futures
Contracts ....................................................................................................... 143
Article 90-10.
Payment and Receipt of Money with respect to FX Daily

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Futures Contracts ......................................................................................... 144
Article 90-11.
Detailed Rules for Financial Instruments Obligation
Assumption Business relating to FX Daily Futures Transactions ......... 145
CHAPTER XIII-II. SPECIAL PROVISIONS FOR EQUITY INDEX DAILY FUTURES
TRANSACTIONS ....................................................................................................................... 145
Section 1.
Equity Index Settlement Price .............................................................. 145
Article 90-12.
Equity Index Settlement Price..................................................... 145
Section 2.
Rollover ................................................................................................ 146
Article 90-13.
Rollover.......................................................................................... 146
Article 90-14.
Initial Equity Index Revaluation Profit or Loss ........................ 147
Article 90-15.
Daily Equity Index Revaluation Profit or Loss ........................ 147
Article 90-16.
Daily Interest Rate Amount ......................................................... 147
Article 90-17.
Dividend Amount.......................................................................... 148
Section 3.

Settlement of Equity Index Daily Futures Transaction ........................ 149

Article 90-18.
Methods for Settlement of Equity Index Daily Futures
Transaction ................................................................................................... 149
Article 90-18-2.
Method of Determination of Reset Price ................................... 150
Article 90-19.
Equity Index Variation ................................................................. 154
Article 90-20.
Methods for Settlement of Positions by Daily Futures Clearing
Member ......................................................................................................... 154
Article 90-21.
Methods for Settlement of Positions by Non-Clearing Member
under Equity Index Daily Futures Contracts ............................................ 156
Article 90-22.
Filing of Offsetting Notification Concerning Equity Index Daily
Futures Contracts ......................................................................................... 158
Article 90-23.
Payment and Receipt of Money with respect to Equity Index
Daily Futures Contracts .............................................................................. 159
Article 90-24.
Detailed Rules for Financial Instruments Obligation
Assumption Business relating to Equity Index Daily Futures
Transactions .................................................................................................. 159
CHAPTER XIII-III.
SPECIAL PROVISIONS FOR FX CLEARING FUTURESCONTRACTS .............................................................................................................................. 159
Article 90-25.
Article 90-26.
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FX Clearing Settlement Price ..................................................... 160
Methods for Settlement of FX Clearing Futures Transaction . 160

Article 90-27.
Rollover.......................................................................................... 161
Article 90-28.
Swap Point ..................................................................................... 162
Article 90-29.
FX Clearing variation ................................................................... 162
Article 90-30.
Methods for Settlement of Positions .......................................... 163
Article 90-31.
Payment and Receipt of Money with respect to FX Daily
Futures Contracts ......................................................................................... 164
Article 90-32.
Detailed Rules for Financial Instruments Obligation
Assumption Business relating to FX Clearing Futures Transactions.... 164
CHAPTER XIII-IV. SPECIAL PROVISIONS FOR THREE-MONTH TONA FUTURESCONTRACTS .............................................................................................................................. 164
Section 1. Payment of Option Premium........................................................................ 164
Article 99-33.
Payment of Option Premium ....................................................... 164
Article 90-34.
Amount to be Paid or Received .................................................. 166
Article 90-35.
Total Receivable Amount and Total Payable Amount ............. 166
Article 90-36.
Regulations relating to Payment of Option Premium .............. 166
Section 2. Offsetting Transactions ................................................................................ 166
Article 90-37.
Offsetting Transactions ................................................................ 166
Article 90-38.
Offsetting Transactions by Non-Clearing Members ................ 167
Article 90-39.
Particulars for Offsetting Transactions ...................................... 168
Section 3. Option Exercise ............................................................................................ 168
Article 90-40.
Option Exercisable Period ........................................................... 168
Article 90-41.
Notification of Option Exercise .................................................. 169
Article 90-42.
Automatic Option Exercise ......................................................... 169
Article 90-43.
Assignment .................................................................................... 170
Article 90-44.
Decrease in Positions resulting from Option Exercise ............ 171
Article 90-45.
Three-month TONA Futures Contracts resulting from Option
Exercise and Assignment ............................................................................ 172
Section 4. Daily Settlement Price ................................................................................. 174
Article 90-46.
Determination of Daily Settlement Price .................................. 174
CHAPTER XIV. POSITION TRANSFER ........................................................................... 175
Article 91. Position Transfer .......................................................................................... 175
Article 92. Position Transfer Fee................................................................................... 176

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Article 93. Effect of Position Transfer .......................................................................... 177
Article 94. Position Transfer Notification .................................................................... 177
Article 95. Exchange’s Approval for Position Transfer ............................................. 178
Article 96. Position Transfer Price ................................................................................ 178
Article 97. Particulars for Position Transfer ................................................................ 179
CHAPTER XV. MISCELLANEOUS PROVISIONS ......................................................... 179
Article 98. Settlement Bank ........................................................................................... 179
Article 99. Postponement of Settlement Date due to System Failure, etc. .............. 179
Article 100. Emergency Measures upon Natural Disaster, etc. ................................ 180
Article 101. (Deleted) ..................................................................................................... 180
Article 102. Standard Time ............................................................................................ 180
Article 103. Change in Settlement Method ................................................................. 181
Article 104. Amount of Clearing Registration Fee, etc. ............................................ 182
Article 105. Limitation on Liabilities for Inoperability of Calculation of Equity
Index ......................................................................................................... 182
Article 106. Liabilities relating to Financial Instruments Obligation Assumption
Business, etc. ................................................................................................ 182
Article 107. Inactive Clearing Member ....................................................................... 183
SUPPLEMENTARY PROVISIONS ......................................................................................... 183

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CHAPTER I.
GENERAL PROVISIONS

Article 1.

Purpose1.1
The purpose of these Clearing Regulations shall be to set forth basic matters withrespect to the methods of operation of financial instruments obligation assumption
business and businesses pertaining thereto operated by the Exchange in accordance with
Article 156-7 of the Financial Instruments and Exchange Act (Act No. 25, 1948;
hereinafter called the “Act”), so as to contribute to fair and appropriate operation of suchbusinesses by the Exchange.

Article 2.

Underlying Contracts

Underlying contracts of financial instruments obligation assumption business
operated by the Exchange shall be those set forth in the following Items:(1)Market derivatives contracts effected on financial instruments markets
provided by the Exchange; and(2)Contracts similar to the market derivatives contracts effected at the
Linked Overseas Exchanges, which are defined in Article 2(3) of theTrading Regulations as the exchanges which are located overseas and atwhich overseas financial instruments markets are provided, based on thesame financial indices as those separately prescribed by the Exchange(hereinafter called the “linked market derivatives contract(s)”).

Article 2-2.

Exemption from Application concerning FX Daily Futures
Contract, Equity Index Daily Futures Contract and FXClearing Futures Contract Obligation Assumption Business
1

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2-2.1 With respect to a market derivatives contract set forth in Article 2(1) above which
is an FX Daily Futures contract, the provisions of Sections 2 and 3 of Chapter IV, Chapters
X through XII, Chapter XIII-II, XIII-Ⅲ, XIII-Ⅳ and other provisions hereof relevant to
L-T Link Positions and the give-up mechanism shall not apply.
2-2.2 With respect to a market derivatives contract set forth in Article 2(1) above
which is an Equity Index Daily Futures contract, the provisions of Sections 2 and 3of Chapter IV, Chapters X through XIII and Chapter XIII-Ⅲ, XIII-Ⅳ and otherprovisions hereof relevant to L-T Link Positions and the give-up mechanism shallnot apply.
2-2.3 With respect to a market derivatives contract set forth in Article 2(1) above which
is an FX Clearing Futures contract, the provisions of Sections 2 and 3 of Chapter IV,
Chapters X through XIII-II and Chapter XIII-Ⅳ, XIV, and other provisions hereof relevant
to L-T Link Positions and the give-up mechanism shall not apply.

CHAPTER II.
QUALIFICATION FOR CLEARING MEMBERS

Section 1.

General Provisions

Article 3.

Clearing Members

3.1
For the purpose hereof, “Clearing Member” shall mean a person qualified for
acting as counterparty in the financial instruments obligation assumption business operated
by the Exchange (hereinafter called the “clearing membership”).
3.2

The clearing membership set forth in Article 3.1 above shall consist of (i)Interest Rate Futures Clearing Membership, (ii) Daily Futures Clearing
2

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Membership and (ⅲ) FX Clearing Futures Clearing Membership, each as specified
below:(1)“Interest Rate Futures Clearing Membership” shall mean themembership which qualifies the holder thereof to act as counterparty inthe financial instruments obligation assumption business operated by the
Exchange in connection with the Interest Rate Futures contracts set forthin Article 2.11 of the Trading Member Regulations and the L-T Link
Positions set forth in Article 2(7) of the Trading Regulations.

(2)“Daily Futures Clearing Membership” shall mean the membership which
qualifies the holder thereof to act as counterparty in the financial
instruments obligation assumption business operated by the Exchange inconnection with the FX Daily Futures contract(s) / transaction(s) or
Equity Index Daily Futures contract(s) / transaction(s) set forth in Article
2.11 of the Trading Member Regulations.

(3)“FX Clearing Futures Clearing Membership” shall mean themembership which qualifies the holder thereof to act as counterparty inthe financial instruments obligation assumption business operated by the
Exchange in connection with the FX Clearing Futures contract(s) /transaction(s) set forth in Article 2.11 of the Trading Member
Regulations.

3.3
For the purpose of these Regulations, a person who has the Interest Rate Futures
Clearing Membership shall be called “Interest Rate Futures Clearing Member”, a person
who has the Daily Futures Clearing Membership shall be called “Daily Futures Clearing
Member”, and a person who has the FX Clearing Futures Clearing Membership shall becalled “FX Clearing Futures Clearing Member”.
3.4
A Clearing Member may not act as counterparty in the financial instruments
obligation assumption business operated by the Exchange in connection with a market
derivatives transaction for which the Clearing Member does not hold the trading
membership; provided, however, an Interest Rate Futures Clearing Member holding
Japanese Yen Interest Rate Trading Membership may act as counterparty in the financial
instruments obligation assumption business operated by the Exchange in connection witha market derivatives transaction concerning Japanese Yen Interest Rate Remote Trading
3

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Membership, and a Daily Futures Clearing Member eligible for Securities, etc. ClearingBrokering Contracts (meaning a “Daily Futures Clearing Member eligible for Securities,
etc. Clearing-Brokering Contracts” as defined in Article 5.6 hereof) which is a registeredfinancial institution may act as counterparty in the financial instruments obligation
assumption business operated by the Exchange in connection with an Equity Index Daily
Futures transaction concerning Equity Index Daily Futures Trading Membership, and a
Daily Futures Clearing Member may act as counterparty in the financial instruments
obligation assumption business operated by the Exchange in connection with an Equity
Index Daily Futures transaction concerning Equity Index Daily Futures Remote Trading
Membership.
3.5
A Trading Member who enters into market derivatives transactions on the
Exchange Market and who does not hold the clearing membership for those transactions
shall be called “Non-Clearing Member”. If a market derivatives contract is an FX
Clearing Futures contract, the FX Clearing Futures Clearing Member shall have an FX
Clearing Futures Clearing Membership.
3.6

A Clearing Member entering into a Clearing Agreement with a specific Non-

Clearing Member and undertaking clearing for market derivatives contracts executed by
the said Non-Clearing Member shall be called “Designated Clearing Member”.

Section 2.

Acquisition of Clearing Membership

Article 4.

Application for Clearing Membership and Admission thereto

4.1
A person who wishes to obtain the clearing membership (hereinafter called“clearing membership applicant”) shall file an application for the clearing membershipwith the Exchange in accordance with the requirements prescribed by the Exchange.
4.2
Upon the receipt of an application for the clearing membership referred to in
Article 4.1 above, the Exchange shall examine applicant’s satisfaction of qualification
criteria for the clearing membership set forth in Article 5 hereof, as well as other matterswhich the Exchange deems necessary to examine with respect to such applicant in view ofoperation of the financial instruments obligation assumption business, and if the Exchange
4Clearing Regulationsdetermines that the applicant is qualified for the clearing membership, it shall admit thesaid applicant to the clearing membership.
4.3
Notwithstanding the provision of Article 4.1 hereof, a clearing membership
applicant which is a Bridge Financial Institution, etc. (meaning the Bridge Financial
Institution, etc. defined in Article 126-34, Paragraph 3, Item 5 of the Deposit Insurance
Act (Act No. 34 of 1971); this interpretation shall equally apply hereinafter) may file anapplication for clearing membership with the Exchange in accordance with therequirements prescribed by the Exchange. In such case, the Exchange may admit the said
clearing membership applicant to the clearing membership.
4.4
When a clearing membership applicant is admitted to the clearing membership by
the Exchange pursuant to the provisions of Article 4.2 above, the clearing membership
applicant shall pay the clearing registration fee, deposit a clearing deposit with the
Exchange and take other procedures for the acquisition of the clearing membershipseparately prescribed by the Exchange.
4.5

When a clearing membership applicant is admitted to the clearing membership by

the Exchange pursuant to the provisions of Article 4.3 above, the clearing membership
applicant shall deposit a clearing deposit with the Exchange and take other procedures forthe acquisition of the clearing membership separately prescribed by the Exchange.
4.6
If a clearing membership applicant fails to take the procedures set forth in Article
4.4 or 4.5 above by the designated deadline, such applicant shall be deemed to havewithdrawn its application for the clearing membership.

Article 5.

Qualification Criteria for Clearing Membership

5.1
Qualifications for Interest Rate Futures Clearing Membership shall be classified
into those to be satisfied by a Clearing Member who is an Interest Rate Futures Clearing
Member eligible for Securities, etc. Clearing-Brokering Contract in accordance with
Chapter III below (hereinafter called “Interest Rate Futures Clearing Member eligible for
Securities, etc. Clearing-Brokering Contracts”) and those to be satisfied by a Clearing
Member who is an Interest Rate Futures Clearing Member not eligible therefor (hereinafter
called “Interest Rate Futures Clearing Member ineligible for Securities, etc. ClearingBrokering Contracts” in this Article 5.1).

An Interest Rate Futures Clearing Member
5

Clearing Regulations

eligible for Securities, etc. Clearing-Brokering Contracts shall satisfy any one of thequalifications as Interest Rate Futures Clearing Member specified in Article 5.2 or 5.3
below, and an Interest Rate Futures Clearing Member ineligible for Securities, etc.
Clearing-Brokering Contracts shall satisfy any one of the qualifications as Interest Rate
Futures Clearing Member specified in Article 5.4 or 5.5 below.
5.2

All of the following criteria shall be satisfied:(1)

Geographic basis: having its office or branch within Japan to conduct
market derivative transactions at the Exchange Market.

(2)

Trading membership: expecting to obtain or already possessing at leastone (1) type of trading membership for Interest Rate Futurestransactions.

(3)

Personnel:(a)being a financial instruments firm (meaning the “financial
instruments firm” defined in Article 2, Paragraph 9 of the Act,
which interpretation shall equally apply hereinafter) which is a
corporation, the registered type of business of which is thesecond financial instruments business (provided, however, if itenters into a market derivative transaction based on a
Customer’s order, the second financial instruments business andsecurities, etc. management business), or being a registeredfinancial institution (meaning the “registered financial
institution” defined in Article 2, Paragraph 11 of the Act, whichinterpretation shall equally apply hereinafter); and

(b)

(4)

having the knowledge and capability enough to performbusinesses as an Interest Rate Futures Clearing Member in lightof its personnel, and having sufficient social credit.

Financial resources:(a)having at least three hundred million Japanese Yen(¥300,000,000) of paid-in capital;
6

Clearing Regulations

(b)having at least twenty billion Japanese Yen (¥20,000,000,000)
of net assets;(c)in the case of a financial instruments firm, maintaining theCapital-to-Risk Ratio defined in Article 46-6.1 of the Act at notless than two hundred percent (200%) (provided that, in the caseof a financial instruments firm whose registered business type
is not the first financial instruments business, maintaining theratio determined by applying mutatis mutandis Article 46-6.1 of
the Act, and the same shall apply in Article 5.3(4)(c), 5.4(4)(c),5.5(4)(c), 5.7(4)(c), 5.8(4)(c), 5.9(4)(c) and 5.10(4)(c));(d)

expecting stable profitability as Clearing Member;(e)in the case of a special financial instruments firm, (meaning
only a special financial instruments firm (tokubetsu kinyu’ushouhin torihiki gyousha) set forth in Article 57-2.2 of the Act;
which files the notification under Article 57-5.2 of the Act; thesame shall apply hereinafter), maintaining the Consolidated
Capital-to-Risk Ratio calculated by the method set forth in
Article 2 of the Financial Services Agency Notification No. 128
of 2010 (hereinafter called the “Consolidated Capital-to-Risk
Ratio on Downstream Consolidation”) being not less than two
hundred percent (200%);(f)

in the case of a designated special financial instruments firm(meaning a designated special financial instruments firm
(taishou tokubetsu kinyu’u shouhin torihiki gyousha) set forthin Article 57-12.3 of the Act; the same shall apply hereinafter),in relation to the Consolidated Capital-to-Risk Ratio set forth in
Article 2 of the Financial Services Agency Notification No. 130
of 2010 (hereinafter called the “Consolidated Capital-to-Risk
Ratio on Uniform International Standards”), “Consolidated
Common Equity Tier 1 Capital Ratio” set forth in the same
Article 2(1) (hereinafter called the “Consolidated Common
Equity Tier 1 Capital Ratio”) being not less than four point five
7

Clearing Regulations

percent (4.5%) and “Consolidated Tier 1 Capital Ratio” set forthin the Article 2(2) thereof (hereinafter called the “Consolidated
Tier 1 Capital Ratio”) being not less than six percent (6%) andthe consolidated total Capital-to-Risk Ratio set forth in the
Article 2(3) thereof (hereinafter called the “Total Consolidated
Capital-to-Risk Ratio”) being not less than eight percent (8%),
or the Consolidated Capital-to-Risk Ratio calculated by themethod set forth in Article 4 thereof (hereinafter called the“Consolidated Capital-to-Risk Ratio on Sample Downstream
Consolidation”) being not less than two hundred percent(200%);(g)in the case of a registered financial institution subject toUniform International Standards (meaning a registered financial
institution set forth in Article 1(10)-2 of the Financial Services
Agency Notification No.19 of 2006; the same shall apply
hereinafter), “Consolidated Common Equity Tier1 Capital
Ratio” set forth in the same Article 2(1) being not less than four
point five percent (4.5%) and “Consolidated Tier1 Capital
Ratio” set forth in Article 2(2) thereof being not less than six
percent (6%) and “Consolidated Total Capital Ratio” set forthin Article 2(3) thereof being not less than eight percent (8%), or“Non-consolidated Common Equity Tier1 Capital Ratio” set
forth in Article 14(1) thereof being not less than four point five
percent (4.5%) and “Non-consolidated Tier1 Capital Ratio” set
forth in Article 14(2) being not less than six percent (6%) and“Non-consolidated Total Capital Ratio” set forth in Article 14(3)thereof being not less than eight percent (8%);(h)

in the case of a financial institution subject to Japanese Standard(meaning a financial institution subject to Japanese Standard set
forth in Article 1(10)-3 of the Financial Services Agency
Notification No.19 of 2006; the same shall apply hereinafter),“Consolidated Capital Adequacy Ratio” set forth in the same
Article 25 being not less than four percent (4%), or “Nonconsolidated Capital Adequacy Ratio” set forth in Article 37
thereof being not less than four percent (4%);
8Clearing Regulations

(i)in the case of The Norinchukin Bank, “Consolidated Common
Capital Contribution Tier1 Ratio” set forth in Article 2(1) of the
Financial Services Agency and Ministry of Agriculture,
Forestry and Fisheries Notification No.4 of 2006 being not lessthan four point five percent (4.5%) and “Consolidated Tier1
Capital Ratio” set forth in Article 2(2) thereof being not lessthan six percent (6%) and “Consolidated Total Capital Ratio”
set forth in Article 2(3) thereof being not less than eight percent(8%), or “Non-consolidated Common Capital Contribution
Tier1 Ratio” set forth in Article 14(1) thereof being not less thanfour point five percent (4.5%) and “Non-consolidated Tier1
Capital Ratio” set forth in Article 14(2) being not less than six
percent (6%) and “Non-consolidated Total Capital Ratio” set
forth in Article 14(3) thereof being not less than eight percent
(8%);

(j)

in the case of Shinkin Central Bank (meaning a shinkin bankfederation subject to Uniform International Standards set forthin Article 1(9)-3 of the Financial Services Agency Notification
No.19 of 2006; the same shall apply hereinafter), “Consolidated
Common Capital Contribution Tier1 Ratio” set forth in Article
19(1) of the Financial Services Agency Notification No.21 of2006 being not less than four point five percent (4.5%) and“Consolidated Tier1 Capital Ratio” set forth in Article 19(2)thereof being not less than six percent (6%) and “Consolidated
Total Capital Ratio” set forth in Article 19(3) thereof being notless than eight percent (8%), or “Non-consolidated Common
Capital Contribution Tier1 Ratio” set forth in Article 31(1)thereof being not less than four point five percent (4.5%) and“Non-consolidated Tier1 Capital Ratio” set forth in Article
31(2) being not less than six percent (6%) and “Nonconsolidated Total Capital Ratio” set forth in Article 31(3)thereof being not less than eight percent (8%);(k)

in the case of a shinkin bank subject to Japanese Standard(meaning a shinkin bank subject to Japanese Standard set forth
9

Clearing Regulations

in Article 1 (9)-2 of the Financial Services Agency Notification
No.21 of 2006; the same shall apply hereinafter), “Consolidated
Capital Adequacy Ratio” set forth in the same Article 2 being
not less than four percent (4%), or “Non-consolidated Capital
Adequacy Ratio” set forth in Article 11 thereof being not lessthan four percent (4%);(l)

in the case of The Shoko Chukin Bank, Ltd. “Consolidated
Common Equity Tier1 Capital Ratio” set forth in Article 2(1) of
the Financial Services Agency and Ministry of Finance andMinistry of Economy, Trade and Industry Notification No.2 of2008 being not less than four point five percent (4.5%) and“Consolidated Tier1 Capital Ratio” set forth in Article 2(2)thereof being not less than six percent (6%) and “Consolidated
Total Capital Ratio” set forth in Article 2(3) thereof being notless than eight percent (8%), or “Non-consolidated Common
Equity Tier1 Capital Ratio” set forth in Article 14(1) thereof
being not less than four point five percent (4.5%) and “Nonconsolidated Tier1 Capital Ratio” set forth in Article 14(2) being
not less than six percent (6%) and “Non-consolidated Total
Capital Ratio” set forth in Article 14(3) thereof being not lessthan eight percent (8%); and

(m)

5.3

In the case of a foreign bank (meaning a foreign bank set forthin Article 10.2(8) of the Banking Act (Act No.59, 1981); thesame shall apply hereinafter), the requirements equivalent tothose set forth in Article 5.2(4)(g).

All of the following criteria shall be satisfied:(1)

Geographic basis: having its office or branch within Japan to conduct
market derivative transactions at the Exchange Market.

(2)

Trading membership: expecting to obtain or already possessing at leastone (1) type of trading membership for Interest Rate Futurestransactions.
10

Clearing Regulations

(3)

(4)

Personnel:(a)being a financial instruments firm which is a corporation andthe registered type of business of which is the second financial
instruments business (provided, however, if it enters into amarket derivative transaction based on a Customer’s order, thesecond financial instruments business and securities, etc.
management business), or being a registered financial
institution; and(b)having the knowledge and capability enough to performbusinesses as an Interest Rate Futures Clearing Member in lightof its personnel, and having sufficient social credit.

Financial resources:(a)having at least three hundred million Japanese Yen(¥300,000,000) of paid-in capital;(b)having at least one billion Japanese Yen (¥1,000,000,000) but
less than twenty billion Japanese Yen (¥20,000,000,000) of net
assets;(c)in the case of a financial instruments firm which is acooperation, maintaining the Capital-to-Risk Ratio defined in
Article 46-6.1 of the Act at not less than two hundred percent(200%);(d)expecting stable profitability as Clearing Member;(e)in the case of a special financial instruments firm, theConsolidated Capital-to-Risk Ratio on Downstream
Consolidation being not less than two hundred percent (200%);(f)

in the case of a designated special financial instruments firm, in
relation to the Consolidated Capital-to-Risk Ratio on Uniform
International Standards, the Consolidated Common Equity Tier
11

Clearing Regulations

1 Capital Ratio being not less than four point five percent (4.5%)
and the Consolidated Tier 1 Capital Ratio being not less than six
percent (6%) and the Total Consolidated Capital-to-Risk Ratio
being not less than eight percent (8%), or the Consolidated
Capital-to-Risk Ratio on Sample Downstream Consolidation
being not less than two hundred percent (200%);(g)in the case of a registered financial institution subject toUniform International Standards, the requirements areequivalent to those set forth in Article 5.2(4)(g);(h)

in the case of a financial institution subject to JapaneseStandard, the requirements are equivalent to those set forth in
Article 5.2(4)(h);(i)

in the case of The Norinchukin Bank, the requirements areequivalent to those set forth in Article 5.2(4)(i);(j)

in the case of Shinkin Central Bank, the requirements areequivalent to those set forth in Article 5.2(4)(j);(k)

in the case of a shinkin bank subject to Japanese Standard, therequirements are equivalent to those set forth in Article
5.2(4)(k);(l)

in the case of The Shoko Chukin Bank, Ltd., the requirements
are equivalent to those set forth in Article 5.2(4)(l);(m)

in the case of a foreign bank, the requirements are equivalent tothose set forth in Article 5.2(4)(m); and(n)obtaining or having obtained guarantee for the obligations
arising from Interest Rate Futures contracts executed in thename of the Interest Rate Futures Clearing Member for the
benefit of the Exchange through the submission of a document
concerning the guarantee in the form and substance approvedby the Exchange to the Exchange by a corporation or other legal
12

Clearing Regulations

entity which has the majority of the voting rights of allshareholders of the clearing membership applicant (hereinafter
called a “parent company”), which satisfies the requirements set
forth in (a), (c) and (e) or (f) above of this Article 5.3(4) and
expects stable profitability with at least twenty billion JapaneseYen (¥20,000,000,000) of net assets.
5.4

All of the following criteria shall be satisfied:(1)

Geographic basis: having its office or branch within Japan to conduct
market derivative transactions at the Exchange Market.

(2)

Trading membership: expecting to obtain or already possessing at leastone (1) type of trading membership for Interest Rate Futurestransactions.

(3)

Personnel:(a)being a financial instruments firm which is a corporation andthe registered type of business of which is the second financial
instruments business (provided, however, if it enters into amarket derivative transaction based on a Customer’s order, thesecond financial instruments business and securities, etc.
management business), or being a registered financial
institution;(b)having the knowledge and capability enough to performbusinesses as an Interest Rate Futures Clearing Member in lightof its personnel, and having sufficient social credit;(4)

Financial resources:(a)having at least three hundred million Japanese Yen(¥300,000,000) of paid-in capital;(b)having at least two billion Japanese Yen (¥2,000,000,000) of net
assets (or when the Exchange otherwise determines that the13

Clearing Regulations

Clearing Member in substance satisfies this qualification as a
special case);(c)in the case of a financial instruments firm which is acooperation, maintaining the Capital-to-Risk Ratio defined in
Article 46-6, Paragraph (1) of the Act at not less than two
hundred percent (200%);(d)

expecting stable profitability as Clearing Member;(e)in the case of a special financial instruments firm, theConsolidated Capital-to-Risk Ratio on Downstream
Consolidation being not less than two hundred percent (200%);(f)

in the case of a designated special financial instruments firm, in
relation to the Consolidated Capital-to-Risk Ratio on Uniform
International Standards, the Consolidated Common Equity
Tier1
Capital Ratio being not less than four point five percent (4.5%)
and the Consolidated Tier 1 Capital Ratio being not less than six
percent (6%) and the Total Consolidated Capital-to-Risk Ratio
being not less than eight percent (8%), or the Consolidated
Capital-to-Risk Ratio on Sample Downstream Consolidation
being not less than two hundred percent (200%);(g)in the case of a registered financial institution subject toUniform International Standards, the requirements areequivalent to those set forth in Article 5.2(4)(g);(h)

in the case of a financial institution subject to JapaneseStandard, the requirements are equivalent to those set forth in
Article 5.2(4)(h);(i)

in the case of The Norinchukin Bank, the requirements areequivalent to those set forth in Article 5.2(4)(i);(j)

Shinkin Central Bank, the requirements are equivalent to those
14

Clearing Regulations

set forth in Article 5.2(4)(j);

5.5

(k)

in the case of a shinkin bank subject to Japanese Standard, therequirements are equivalent to those set forth in Article
5.2(4)(k);(l)

in the case of The Shoko Chukin Bank, Ltd., the requirements
are equivalent to those set forth in Article 5.2(4)(l); and(m)in the case of a foreign bank, the requirements are equivalent tothose set forth in Article 5.2(4)(m);All of the following criteria shall be satisfied:(1)

Geographic basis: having its office or branch within Japan to conduct
market derivative transactions at the Exchange Market.

(2)

Trading membership: expecting to obtain or already possessing at leastone (1) type of trading membership for Interest Rate Futurestransactions.

(3)

Personnel:(a)being a financial instruments firm which is a corporation andthe registered type of business of which is the second financial
instruments business (provided, however, if it enters into amarket derivative transaction based on a Customer’s order, thesecond financial instruments business and securities, etc.
management business), or being a registered financial
institution;

(b)

(4)

having the knowledge and capability enough to performbusinesses as an Interest Rate Futures Clearing Member in lightof its personnel, and having sufficient social credit;

Financial resources:
15

Clearing Regulations

(a)having at least three hundred million Japanese Yen(¥300,000,000) of paid-in capital;(b)having at least one billion Japanese Yen (¥1,000,000,000) but
less than two billion Japanese Yen (¥2,000,000,000) of net
assets;(c)in the case of a financial instruments firm which is acooperation, maintaining the Capital-to-Risk Ratio defined in
Article 46-6, Paragraph (1) of the Act at not less than two
hundred percent (200%);(d)

expecting stable profitability as Clearing Member;(e)in the case of a special financial instruments firm, theConsolidated Capital-to-Risk Ratio on Downstream
Consolidation being not less than two hundred percent (200%);(f)

in the case of a designated special financial instruments firm, in
relation to the Consolidated Capital-to-Risk Ratio on Uniform
International Standards, the Consolidated Common Equity
Tier1 Capital Ratio being not less than four point five percent(4.5%) and the Consolidated Tier 1 Capital Ratio being not lessthan six percent (6%) and the Total Consolidated Capital-toRisk Ratio being not less than eight percent (8%), or theConsolidated Capital-to-Risk Ratio on Sample Downstream
Consolidation being not less than two hundred percent (200%);(g)in the case of a registered financial institution subject toUniform International Standards, the requirements areequivalent to those set forth in Article 5.2(4)(g);(h)

in the case of a financial institution subject to JapaneseStandard, the requirements are equivalent to those set forth in
Article 5.2(4)(h);(i)

in the case of The Norinchukin Bank, the requirements are
16

Clearing Regulations

equivalent to those set forth in Article 5.2(4)(i);(j)

in case of Shinkin Central Bank, the requirements are equivalent
to those set forth in Article 5.2(4)(j);(k)

in the case of a shinkin bank subject to Japanese Standard, therequirements are equivalent to those set forth in Article
5.2(4)(k);(l)

in the case of The Shoko Chukin Bank, Ltd., the requirements
are equivalent to those set forth in Article 5.2(4)(l);(m)

the case of a foreign bank, the requirements are equivalent tothose set forth in Article 5.2(4)(m); and(n)obtaining or having obtained guarantee for the obligations
arising from Interest Rate Futures contracts executed in thename of the Interest Rate Futures Clearing Member for the
benefit of the Exchange through the submission of a document
concerning the guarantee in the form and substance approvedby the Exchange to the Exchange by a parent company, which
satisfies the requirements set forth in (a), (c) and (e) or (f) aboveof this Article 5.5(4) and expects stable profitability with at least
twenty billion Japanese Yen (¥20,000,000,000) of net assets.

5.6
Qualifications for Daily Futures Clearing Membership shall be classified into
those to be satisfied by a Clearing Member who is a Daily Futures Clearing Member
eligible for Securities, etc. Clearing-Brokering Contract in accordance with Chapter III
below (hereinafter called “Daily Futures Clearing Member eligible for Securities, etc.
Clearing-Brokering Contracts”) and those to be satisfied by a Clearing Member who is a
Daily Futures Clearing Member not eligible therefor (hereinafter called “Daily Futures
Clearing Member ineligible for Securities, etc. Clearing-Brokering Contracts”). A Daily
Futures Clearing Member eligible for Securities, etc. Clearing-Brokering Contracts shallsatisfy any one of the qualifications as Daily Futures Clearing Member specified in Article
5.7 or 5.8 below, and a Daily Futures Clearing Member ineligible for Securities, etc.
Clearing-Brokering Contracts shall satisfy any one of the qualifications as Daily Futures
Clearing Member specified in Article 5.9 or 5.10 below.
17

Clearing Regulations

5.7

All of the following criteria shall be satisfied:(1)

Geographic basis: having its office or branch within Japan to conduct
clearing operation for market derivative transactions at the Exchange
Market.

(2)

Trading membership: obtaining a trading membership in connection withthe market derivatives transactions for which it conducts clearing
operation (i.e., FX Daily Futures Trading Membership or Equity Index
Daily Futures Trading Membership), provided that obtaining Equity
Index Daily Futures Trading Membership is not required for a registeredfinancial institution conducting clearing operation for Equity Index
Daily Futures transactions.

(3)

Personnel:(a)in the case of a person who conducts clearing operation for FX
Daily Futures transactions, being a financial instruments firm
which is a corporation and the registered type of business ofwhich is the second financial instruments business (or thesecond financial instruments business as well as the securities,
etc. management business if it conducts market derivatives
transactions based on Customer’s order,), or a registeredfinancial institution;(b)in the case of a person who conducts clearing operation for
Equity Index Daily Futures transactions, being a financial
instruments firm which is a corporation and the registered typeof business of which is the first financial instruments businessor a registered financial institution; and

(c)

(4)

having the knowledge and capability enough to performbusinesses as a Daily Futures Clearing Member in light of its
personnel, and having sufficient social credit.

Financial resources:
18

Clearing Regulations

(a)having at least three hundred million Japanese Yen(¥300,000,000) of paid-in capital;(b)having at least twenty billion Japanese Yen (¥20,000,000,000)
of net assets;(c)in the case of a financial instruments firm which is a
corporation, maintaining the Capital-to-Risk Ratio defined in
Article 46-6.1 of the Act at not less than two hundred percent(200%);(d)expecting stable profitability as Clearing Member;(e)in the case of a special financial instruments firm, theConsolidated Capital-to-Risk Ratio being not less than two
hundred percent (200%); and(f)in the case of a designated special financial instruments firm, in
relation to the Consolidated Capital-to-Risk Ratio on Uniform
International Standards, the Consolidated Common Equity Tier
1 Capital Ratio being not less than four point five percent (4.5%)
and the Consolidated Tier 1 Capital Ratio being not less than six
percent (6%) and the Total Consolidated Capital-to-Risk Ratio
being not less than eight percent (8%), or the Consolidated
Capital-to-Risk Ratio on Sample Downstream Consolidation
being not less than two hundred percent (200%).

(g)in the case of a registered financial institution subject toUniform International Standards, the requirements areequivalent to those set forth in Article 5.2(4)(g);(h)

in the case of a financial institution subject to JapaneseStandard, the requirements are equivalent to those set forth in
Article 5.2(4)(h);(i)

in the case of The Norinchukin Bank, the requirements are
19

Clearing Regulations

equivalent to those set forth in Article 5.2(4)(i);

5.8

(j)

in the case of Shinkin Central Bank, the requirements areequivalent to those set forth in Article 5.2(4)(j);(k)

in the case of a shinkin bank subject to Japanese Standard, therequirements are equivalent to those set forth in Article
5.2(4)(k);(l)

in the case of The Shoko Chukin Bank, Ltd., the requirements
are equivalent to those set forth in Article 5.2(4)(l);(m)

in the case of a foreign bank, the requirements are equivalent tothose set forth in Article 5.2(4)(m).

All of the following criteria shall be satisfied:(1)

having its office or branch within Japan to conduct clearing operation formarket derivative transactions at the Exchange Market(2)

Trading membership: obtaining a trading membership in connection withthe market derivatives transactions for which it conducts clearing
operation (FX Daily Futures Trading Membership or Equity Index Daily
Futures Trading Membership), except a registered financial institution
who conducts clearing operation for Equity Index Daily Futurestransactions in connection with obtaining an Equity Index Daily Futures
Trading Membership.

(3)

Personnel:(a)in the case of a person who conducts clearing operation for FX
Daily Futures transactions, being a financial instruments firm
which is a corporation and the registered type of business ofwhich is the second financial instruments business (or thesecond financial instruments business as well as the securities,
etc. management business, if it conducts market derivatives
transactions based on Customer’s order), or a registered
20

Clearing Regulations

financial institution;(b)in the case of a person who conducts clearing operation for
Equity Index Daily Futures transactions, being a financial
instruments firm which is a corporation and the registered typeof business of which is the first financial instruments businessor a registered financial institution; and(c)having the knowledge and capability enough to performbusinesses as a Daily Futures Clearing Member in light of its
personnel, and having sufficient social credit.

(4)

Financial resources:(a)having at least three hundred million Japanese Yen(¥300,000,000) of paid-in capital;(b)having at least one billion Japanese Yen (¥1,000,000,000) but
less than twenty billion Japanese Yen (¥20,000,000,000) of net
assets;(c)in the case of a financial instruments firm which is acooperation, maintaining the Capital-to-Risk Ratio defined in
Article 46-6, Paragraph (1) of the Act at not less than two
hundred percent (200%);(d)

expecting stable profitability as Clearing Member;(e)in the case of a special financial instruments firm, theConsolidated Capital-to-Risk Ratio on Downstream
Consolidation being not less than two hundred percent (200%);(f)

in the case of a designated special financial instruments firm, in
relation to the Consolidated Capital-to-Risk Ratio on Uniform
International Standards, the Consolidated Common Equity Tier
1 Capital Ratio being not less than four point five percent (4.5%)
and the Consolidated Tier 1 Capital Ratio being not less than six
21

Clearing Regulations

percent (6%) and the Total Consolidated Capital-to-Risk Ratio
being not less than eight percent (8%), or the Consolidated
Capital-to-Risk Ratio on Sample Downstream Consolidation
being not less than two hundred percent (200%); and(g)in the case of a registered financial institution subject toUniform International Standards, the requirements areequivalent to those set forth in Article 5.2(4)(g);(h)

in the case of a financial institution subject to JapaneseStandard, the requirements are equivalent to those set forth in
Article 5.2(4)(h);(i)

in the case of The Norinchukin Bank, the requirements areequivalent to those set forth in Article 5.2(4)(i);(j)

in the case of Shinkin Central Bank, the requirements areequivalent to those set forth in Article 5.2(4)(j);(k)

in the case of a shinkin bank subject to Japanese Standard, therequirements are equivalent to those set forth in Article
5.2(4)(k);(l)

in the case of The Shoko Chukin Bank, Ltd., the requirements
are equivalent to those set forth in Article 5.2(4)(l);(m)

in the case of a foreign bank, the requirements are equivalent to those
set forth in Article 5.2(4)(m).

(n)

5.9

obtaining or having obtained guarantee by its parent company
which satisfies the requirements set forth in (a), (c) and (e) or(f) above of this Article 5.11(4) and has at least twenty billion
Japanese Yen (¥20,000,000,000) of net assets, and of whichstable profitability is expected.

All of the following criteria shall be satisfied:
22

Clearing Regulations

(1)having its office or branch within Japan to conduct clearing operation formarket derivative transactions at the Exchange Market.

(2)

Trading membership: obtaining a trading membership in connection withthe market derivatives transactions for which it conducts clearing
operation (FX Daily Futures Trading Membership or Equity Index Daily
Futures Trading Membership).

(3)

Personnel:

(4)

(a)

in the case of a person who conducts clearing operation for FX
Daily Futures transactions, being a corporation and theregistered type of business of which is the second financial
instruments business (or the second financial instruments
business as well as the securities, etc. management business, if
it conducts market derivatives transactions based on Customer’sorder), or a registered financial institution;(b)in the case of a person who conducts clearing operation for
Equity Index Daily Futures transactions, being a financial
instruments firm which is a corporation and the registered typeof business of which is the first financial instruments business;
and

(c)

having the knowledge and capability enough to performbusinesses as a Daily Futures Clearing Member in light of its
personnel, and having sufficient social credit.

Financial resources:(a)having at least three hundred million Japanese Yen(¥300,000,000) of paid-in capital;(b)having at least two billion Japanese Yen (¥2,000,000,000) of net
assets (or when the Exchange determines that the Clearing
Member substantially satisfies this qualification as a specialcase);
23

Clearing Regulations

(c)in the case of a financial instruments firm which is acooperation, maintaining the Capital-to-Risk Ratio defined in
Article 46-6, Paragraph (1) of the Act at not less than two
hundred percent (200%);(d)

expecting stable profitability as Clearing Member; and(e)in the case of a special financial instruments firm, theConsolidated Capital-to-Risk Ratio on Downstream
Consolidation being not less than two hundred percent (200%);
and

(f)

in the case of a designated special financial instruments firm, in
relation to the Consolidated Capital-to-Risk Ratio on Uniform
International Standards, the Consolidated Common Equity Tier
1 Capital Ratio being not less than four point five percent (4.5%)
and the Consolidated Tier 1 Capital Ratio being not less than six
percent (6%) and the Total Consolidated Capital-to-Risk Ratio
being not less than eight percent (8%), or the Consolidated
Capital-to-Risk Ratio on Sample Downstream Consolidation
being not less than two hundred percent (200%).

(g)in the case of a registered financial institution subject toUniform International Standards, the requirements areequivalent to those set forth in Article 5.2(4)(g);(h)

in the case of a financial institution subject to JapaneseStandard, the requirements are equivalent to those set forth in
Article 5.2(4)(h);(i)

in the case of The Norinchukin Bank, the requirements areequivalent to those set forth in Article 5.2(4)(i);(j)

in the case of Shinkin Central Bank, the requirements areequivalent to those set forth in Article 5.2(4)(j);24

Clearing Regulations

(k)in the case of a shinkin bank subject to Japanese Standard, therequirements are equivalent to those set forth in Article
5.2(4)(k);(l)

in the case of The Shoko Chukin Bank, Ltd., the requirements
are equivalent to those set forth in Article 5.2(4)(l);(m)

in the case of a foreign bank, the requirements are equivalent tothose set forth in Article 5.2(4)(m).

5.10
Having less than two billion Japanese Yen (¥2,000,000,000) of net assets, and allof the following criteria shall be satisfied:(1)

having its office or branch within Japan to conduct clearing operation formarket derivative transactions at the Exchange Market.

(2)

Trading membership: obtaining a trading membership in connection withthe market derivatives transactions for which it conducts clearing
operation (FX Daily Futures Trading Membership or Equity Index Daily
Futures Trading Membership).

(3)

Personnel:(a)in the case of a person who conducts clearing operation for FX
Daily Futures transactions, being a financial instruments firm
which is a corporation and the registered type of business ofwhich is the second financial instruments business (or thesecond financial instruments business as well as the securities,
etc. management business, if it conducts market derivatives
transactions based on Customer’s order), or a registeredfinancial institution;(b)in the case of a person who conducts clearing operation for
Equity Index Daily Futures transactions, being a financial
instruments firm which is a corporation and the registered typeof business of which is the first financial instruments business;and25

Clearing Regulations

(c)

(4)

having the knowledge and capability enough to performbusinesses as a Daily Futures Clearing Member in light of its
personnel, and having sufficient social credit.

Financial resources:(a)having at least three hundred million Japanese Yen(¥300,000,000) of paid-in capital;(b)(Deleted);(c)in the case of a financial instruments firm which is acooperation, maintaining the Capital-to-Risk Ratio defined in
Article 46-6, Paragraph (1) of the Act at not less than two
hundred percent (200%);(d)

expecting stable profitability as Clearing Member;(e)in the case of a special financial instruments firm, theConsolidated Capital-to-Risk Ratio on Downstream
Consolidation being not less than two hundred percent (200%);
and

(f)

in the case of a designated special financial instruments firm, in
relation to the Consolidated Capital-to-Risk Ratio on Uniform
International Standards, the Consolidated Common Equity Tier
1 Capital Ratio being not less than four point five percent (4.5%)
and the Consolidated Tier 1 Capital Ratio being not less than six
percent (6%) and the Total Consolidated Capital-to-Risk Ratio
being not less than eight percent (8%), or the Consolidated
Capital-to-Risk Ratio on Sample Downstream Consolidation
being not less than two hundred percent (200%); and(g)in the case of a registered financial institution subject toUniform International Standards, the requirements areequivalent to those set forth in Article 5.2(4)(g);26

Clearing Regulations

(h)in the case of a financial institution subject to JapaneseStandard, the requirements are equivalent to those set forth in
Article 5.2(4)(h);(i)

in the case of the Norinchukin Bank, the requirements areequivalent to those set forth in Article 5.2(4)(i);(j)

in the case of Shinkin Central Bank, the requirements areequivalent to those set forth in Article 5.2(4)(j);(k)

in the case of a shinkin bank subject to Japanese Standard, therequirements are equivalent to those set forth in Article
5.2(4)(k);(l)

in the case of the Shoko Chukin Bank, Ltd., the requirements
are equivalent to those set forth in Article 5.2(4)(l);(m)

in the case of a foreign bank, the requirements are equivalent tothose set forth in Article 5.2(4)(m).

(n)

obtaining or having obtained guarantee by its parent company
which satisfies the requirements set forth in (a), (c) and (e) or(f) above of this Article 5.13(4) and has at least three billion
Japanese Yen (¥3,000,000,000) of net assets, and of whichstable profitability is expected.

5.11
An FX Clearing Futures Clearing Member shall satisfy any one of thequalifications as FX Clearing Futures Clearing Member specified in Article 5.12 or 5.13
below.
5.12

All of the following criteria shall be satisfied:(1)

Geographic basis: having its office or branch within Japan to conduct
clearing operation for market derivative transactions at the Exchange
Market.
27

Clearing Regulations

(2)Trading membership: obtaining FX Broker Trading Membership or LP Trading
Membership.

(3)

Personnel:(a)being a financial instruments firm which is a corporation andthe registered type of business of which is the first financial
instruments business and the second financial instruments
business (provided, however, with respect to a financial
instrument firm having LP Trading Membership, the registeredtype of business of which is if it enters into a market derivativetransaction based on a Customer’s order, the second financial
instruments business and securities, etc. management business),or being a registered financial institution;

(b)

(4)

having the knowledge and capability enough to performbusinesses as an FX Clearing Futures Clearing Member in lightof its personnel, and having sufficient social credit;

Financial resources(a)having at least three hundred million Japanese Yen(¥300,000,000) of paid-in capital;(b)having at least two billion Japanese Yen (¥2,000,000,000) of net
assets (or when the Exchange determines that the Clearing
Member substantially satisfies this qualification as a specialcase);(c)in the case of a financial instruments firm which is acooperation, maintaining the Capital-to-Risk Ratio defined in
Article 46-6, Paragraph (1) of the Act at not less than two
hundred percent (200%);(d)

expecting stable profitability as Clearing Member;(e)in the case of a special financial instruments firm, the28

Clearing Regulations

Consolidated Capital-to-Risk Ratio on Downstream
Consolidation being not less than two hundred percent (200%);(f)

in the case of a designated special financial instruments firm, in
relation to the Consolidated Capital-to-Risk Ratio on Uniform
International Standards, the Consolidated Common Equity Tier
1 Capital Ratio being not less than four point five percent (4.5%)
and the Consolidated Tier 1 Capital Ratio being not less than six
percent (6%) and the Total Consolidated Capital-to-Risk Ratio
being not less than eight percent (8%), or the Consolidated
Capital-to-Risk Ratio on Sample Downstream Consolidation
being not less than two hundred percent (200%);(g)in the case of a registered financial institution subject toUniform International Standards, the requirements areequivalent to those set forth in Article 5.2(4)(g);(h)

in the case of a financial institution subject to JapaneseStandard, the requirements are equivalent to those set forth in
Article 5.2(4)(h);(i)

in the case of The Norinchukin Bank, the requirements areequivalent to those set forth in Article 5.2(4)(i);(j)

in the case of Shinkin Central Bank, the requirements are equivalent
to those set forth in Article 5.2(4)(j);(k)

in the case of a shinkin bank subject to Japanese Standard, therequirements are equivalent to those set forth in Article
5.2(4)(k);(l)

in the case of The Shoko Chukin Bank, Ltd., the requirements
are equivalent to those set forth in Article 5.2(4)(l);(m)

in the case of a foreign bank, the requirements are equivalent tothose set forth in Article 5.2(4)(m).
29

Clearing Regulations

15.13 The applicant having net assets of less than 2 billion yen shall satisfy all of thefollowing criteria:(1)

Geographic basis: having its office or branch within Japan to conduct
clearing operation for market derivative transactions at the Exchange
Market.

(2)

Trading membership: obtaining FX Broker Trading Membership or LP
Trading Membership(3)

Personnel:(a)being a financial instruments firm which is a corporation andthe registered type of business of which is the first financial
instruments business and the second financial instruments
business (provided, however, with respect to a financial
instrument firm having LP Trading Membership, the registeredtype of business of which is the second financial instruments
business), or being a registered financial institution;

(b)

(4)

having the knowledge and capability enough to performbusinesses as an FX Clearing Futures Clearing Member in lightof its personnel, and having sufficient social credit;

Financial resources(a)having at least three hundred million Japanese Yen(¥300,000,000) of paid-in capital;(b)in the case of a financial instruments firm which is acooperation, maintaining the Capital-to-Risk Ratio defined in
Article 46-6, Paragraph (1) of the Act at not less than two
hundred percent (200%);(c)

expecting stable profitability as Clearing Member;(d)in the case of a special financial instruments firm, the30

Clearing Regulations

Consolidated Capital-to-Risk Ratio on Downstream
Consolidation being not less than two hundred percent (200%);(e)in the case of a designated special financial instruments firm, in
relation to the Consolidated Capital-to-Risk Ratio on Uniform
International Standards, the Consolidated Common Equity Tier
1 Capital Ratio being not less than four point five percent (4.5%)
and the Consolidated Tier 1 Capital Ratio being not less than six
percent (6%) and the Total Consolidated Capital-to-Risk Ratio
being not less than eight percent (8%), or the Consolidated
Capital-to-Risk Ratio on Sample Downstream Consolidation
being not less than two hundred percent (200%);(f)

in the case of a registered financial institution subject toUniform International Standards, the requirements areequivalent to those set forth in Article 5.2(4)(g);(g)

in the case of a financial institution subject to JapaneseStandard, the requirements are equivalent to those set forth in
Article 5.2(4)(h);(h)

in the case of The Norinchukin Bank, the requirements areequivalent to those set forth in Article 5.2(4) (i);(i)

in the case of Shinkin Central Bank, the requirements areequivalent to those set forth in Article 5.2(4)(j);(j)

in the case of a shinkin bank subject to Japanese Standard, therequirements are equivalent to those set forth in Article
5.2(4)(k);(k)

in the case of The Shoko Chukin Bank, Ltd., the requirements
are equivalent to those set forth in Article 5.2(4)(l);(l)

in the case of a foreign bank, the requirements are equivalent tothose set forth in Article 5.2(4)(m).
31

Clearing Regulations

(m)Article 6.

The applicant obtains or has obtained a guarantee, for the
benefit of and in favor of the Exchange, from its parent company
which satisfies the criteria (a) and (b), and (d) or (e) above andis likely to maintain stable profitability with the net assets of 3
billion yen or more, guaranteeing the obligations arising fromFX Clearing Futures contracts executed in the name of such FX
Clearing Futures Clearing Member by the written guarantee
submitted by such parent company to the Exchange in the formand substance approved by the Exchange.

Time and Date of Acquisition of Clearing Membership6.1
A clearing membership applicant who has completed the procedures set forth in
Article 4.4 hereof by the designated deadline shall acquire the clearing membership asfrom the time and date designated by the Exchange.
6.2

A clearing membership applicant which is a Bridge Financial Institution, etc. andwhich has completed the procedures set forth in Article 4.5 hereof that have been
designated by the Exchange by the designated deadline shall acquire the clearing
membership as from the time and date designated by the Exchange.
6.3
If a clearing membership applicant becomes a Clearing Member in accordancewith Article 6.1 or 6.2 above, the Exchange shall notify such effect to the persons set forth
below:(1)

Where the applicant becomes an Interest Rate Futures Clearing Member:
All Interest Rate Futures Clearing Members and the Non-Clearing
Members in terms of Interest Rate Futures contracts(2)

Where the applicant becomes a Daily Futures Clearing Member:
All Daily Futures Clearing Members and Non-Clearing Members inconnection with FX Daily Futures transactions and Equity Index Daily
Futures transactions
32

Clearing Regulations

(3)Where the applicant becomes an FX Clearing Futures Clearing Member:
All FX Clearing Futures Clearing Members

Article 7.
Treatment of Unsettled Contract where Non-Clearing Member
is admitted to Clearing MembershipIf a Non-Clearing Member is admitted to the clearing membership and becomesa Clearing Member in accordance with Article 6.1 above, the Exchange shall cause all theunsettled market derivatives contracts executed on the Exchange Market at the bid or offer
submitted by the Non-Clearing Member to pass from its Designated Clearing Member, as
such term is defined in Article 25.1 of the Trading Member Regulations, to the NonClearing Member, with effect as of the time and date designated by the Exchange.

Section 3. Clearing Member’s Duties

Article 8.

Delivery of Written Oath

A Clearing Member shall deliver a written oath to the Exchange in the form
designated by the Exchange.

Article 9.

Clearing Member Representative

9.1
A Clearing Member shall designate one (1) appropriate person as its
representative (Seisan Sankasya Daihyosya) (hereinafter called the “Clearing Member
Representative”) from among its representative directors or, in the case of a Clearing
Member who is a corporation or other legal entity established under laws other thanJapanese laws, from among those who have the authority to represent the foreign legal
entity as representative in Japan referred to in Article 817, Paragraph 1 of the Companies
Act (Act No. 86 of 2005), and hold a position of director or officer or a higher position,and shall notify the Exchange of such Clearing Member Representative.
33

Clearing Regulations

9.2
A Clearing Member shall be represented only by its Clearing Member
Representative as between the Clearing Member and the Exchange.

Article 9-2.

Contact Office9-2.1 A Clearing Member shall, from among its principal and other offices and branches
in Japan, designate one (1) contact office to receive notices from the Exchange and notify
the Exchange thereof in accordance with the requirements prescribed by the Exchange.
9-2.2 In case of any change as to a Clearing Member’s contact office, the Clearing
Member shall notify the Exchange thereof in accordance with the requirements prescribedby the Exchange.
9-2.3 If a Clearing Member having trading membership has notified of its contact officein the capacity of Trading Member pursuant to Article 10 of the Trading Member
Regulations, it shall designate such office as the contact office referred to in Article 9-2.1
hereof.

Article 10.
Limitation on Liabilities for Financial Instruments Obligation
Assumption Business
The Exchange shall not be liable for any damages that may be incurred by a
Clearing Member in the course of its operation of business in connection with the financial
instruments obligation assumption business operated by the Exchange, unless suchdamages were suffered due to willful misconduct or gross negligence on the side of the
Exchange.

Article 10-2. Limitation on Liabilities for Damages Arising from Use ofMarket Facilities
10-2.1 Notwithstanding the provisions of Article 10 above, the Exchange shall not beliable for any damages that may be incurred by a Clearing Member due to its use of the
Exchange System prescribed in Article 15.1 of the Trading Member Regulations.
34

Clearing Regulations

10-2.2 The Exchange shall not be liable for any damages that may be incurred by a
Clearing Member due to its use of the Member’s System prescribed in Article 15.2 of theTrading Member Regulations.
10-2.3 Each Clearing Member shall be liable for any damages that may be incurred by
the Exchange due to the Clearing Member’s use of the Market Facilities prescribed in
Article 15.3 of the Trading Member Regulations.

Article 10-3.

Development of Risk Management System

A Clearing Member shall develop the risk management system for unsettled
market derivatives transactions on the Exchange’s Market (meaning the system to manage
the risk which may arise due to fluctuation in the prices of the unsettled transactions heldby it, default of contract by its counterparty or other reason, which interpretation shallequally apply in Article 15-2-3 below).

Section 4.

Deregistration of Clearing Membership

Article 11.

Application for Deregistration of Clearing Membership

11.1
A Clearing Member who desires to deregister the clearing membership shall apply
for deregistration of the clearing membership in accordance with the requirements
prescribed by the Exchange; provided, however, that a Clearing Member may not apply
for the deregistration unless:(1)

It intends to deregister the clearing membership in order to deregister all
the trading memberships for market derivatives transactions, etc.
covered by the deregistered clearing membership; or(2)

If it does not fall under the event set forth in Article 11.1(1) above, it has
executed a Clearing Agreement under the deregistered clearing
membership with another Clearing Member who has the same type ofclearing membership as such deregistered clearing membership, and who
35

Clearing Regulations

holds the same trading membership or memberships as those held by the
deregistering Clearing Member for the market derivatives transactions,etc. covered by the deregistered clearing membership. (provided that,
where the Clearing Member applying for deregistration of Daily Futures
Clearing Membership appoints as another Clearing Member a registeredfinancial institution who conducts clearing operation for Equity Index
Daily Futures transactions, it shall be those having executed a Clearing
Agreement in connection with the deregistered Daily Future Clearing
Membership with another Clearing Member having the same Clearing
Membership).
11.2
A Clearing Member, if it acts as Designated Clearing Member with respect to theclearing membership which it intends to deregister, may not apply for the deregistration
set forth in Article 11.1 above, unless it has terminated all its Clearing Agreements related
to such deregistered clearing membership and obtained the Exchange’s approval for suchtermination.

Article 12.
MemberMarket Derivatives Contracts involving Deregistering Clearing

12.1
With respect to a Clearing Member who has applied for deregistration of aclearing membership (hereinafter called a “clearing membership deregistration
applicant”), the Exchange shall suspend assumption of obligations arising from market
derivatives transactions on the Exchange Market at the bid or offer submitted by theclearing membership deregistration applicant under the deregistered clearing membership,
as from the time designated by the Exchange of the business day immediately following
the day on which the Exchange receives such clearing membership deregistration
applicant’s application for deregistration.
12.2
If the Exchange suspends assumption of obligations arising from market
derivatives transactions with respect to a clearing membership deregistration applicant inaccordance with Article 12.1 above, the Exchange may cause the clearing membership
deregistration applicant to transfer to any other Clearing Member or otherwise liquidate in
the manner that the Exchange deems necessary, any of the unsettled market derivatives
contracts executed by the clearing membership deregistration applicant under the
deregistered clearing membership on the Exchange Market at the bid or offer submitted
36

Clearing Regulations

by the clearing membership deregistration applicant, within the period prescribed by the
Exchange.
12.3
Notwithstanding the provisions of Article 12.1 above, the Exchange may assume
obligations arising from market derivatives transactions executed by the clearing
membership deregistration applicant under the deregistered clearing membership on the
Exchange Market at the bid or offer submitted by the clearing membership deregistration
applicant, to the extent necessary for the clearing membership deregistration applicant toproceed with the transfer or liquidation set forth in Article 12.2 above.

Article 13.

Market Derivatives Contracts in cases of Merger orConsolidation of Clearing Membership Deregistration Applicant

Notwithstanding the provisions of Article 12.1 hereof, the Exchange shall not be
required to suspend assumption of obligations arising from market derivatives transactions
executed by the clearing membership deregistration applicant under the deregisteredclearing membership on the Exchange Market effected at the bid or offer submitted by theclearing membership deregistration applicant, if the clearing membership deregistration
applicant is, upon its deregistration, going to be merged into or amalgamate with or totransfer its business to or otherwise transact with, a party who will be admitted to theclearing membership, or another Clearing Member holding the same clearing membershipas that the clearing membership deregistration applicant intends to deregister, and thus the
Exchange deems it unnecessary to cause the clearing membership deregistration applicant
to transfer or liquidate the unsettled market derivatives contracts executed by the clearing
membership deregistration applicant under the deregistered clearing membership on the
Exchange Market at the bid or offer submitted by the clearing membership deregistration
applicant.

Article 13-2.

Approval of Deregistration

Deregistration of the clearing membership shall be approved by designating a
specific future date and time on which the deregistration takes effect, except deregistrationof the Interest Rate Futures Clearing Membership which is subject to the provisions of theimmediately following Article, and deregistration of the FX Clearing Futures Clearing
Membership which is subject to the provisions of Article 13-3.
37

Clearing Regulations

Article 13-2-2. Approval of Deregistration of Interest Rate Futures Clearing
Membership
13-2-2.1 If a Clearing Member applies for deregistration of the Interest Rate Futures
Clearing Membership pursuant to Article 11.1 hereof, the Clearing Member shall bederegistered at the time designated by the Exchange on the day agreed between the
Exchange and the Clearing Member or, even without such agreement, at the latest time
among those set forth in each Item below:
(1)

(2)

at the time designated by the Exchange on the twelfth (12th) bankbusiness day (meaning a bank business day in Japan; the sameinterpretation shall equally apply hereinafter in this Article) from the day
immediately following the day on which the Exchange accepts suchapplication; orat the time designated by the Exchange on the eighth (8th) bank business
day from the day immediately following the day on which the unsettled

Interest Rate Futures contracts or the L-T Link Positions of such Clearing
Member are liquidated and the obligations owed to the Exchange aresettled.
13-2-2.2
Notwithstanding the provisions of Article 13-2-2.1 above, if theapplication was made during the Cooling Off Period for Interest Rate Futures
provided in Article 40-3 hereof or the Cooling Off Period for Interest Rate Futures
starts after the day on which such application was made but before thederegistration of the Interest Rate Futures Clearing Membership takes effect, theClearing Member shall be deregistered at the time designated by the Exchange on
the day agreed between the Exchange and the Clearing Member or, even without
such agreement, at the latest time among those set forth in each Item below:(1)

at the time designated by the Exchange on the twelfth (12th) bankbusiness day from the day immediately following the day on which the
Exchange accepts such application;(2)

at the time designated by the Exchange on the eighth (8th) bank business
day from the day immediately following the day on which unsettled
Interest Rate Futures contracts or L-T Link Positions of such Clearing
38

Clearing Regulations

Member are liquidated and the obligations owed to the Exchange aresettled;(3)

at the time designated by the Exchange on the day on which such Cooling
Off Period for Interest Rate Futures ends; or(4)

If an obligation to deposit Special Purpose Cash Collateral for Interest
Rate Futures defined in Article 40-5 hereof arises during the Cooling Off
Period for Interest Rate Futures, at the time designated by the Exchangeon the day on which the Special Purpose Cash Collateral for Interest Rate
Futures to be deposited which is calculated for the day on which such
Cooling Off Period for Interest Rate Futures ends (hereinafter referred toas the “Special Purpose Cash Collateral Final Requirement Amount forInterest Rate Futures”) is deposited with the Exchange (provided,
however, if the Special Purpose Cash Collateral for Interest Rate Futures
has been deposited with the Exchange in the amount exceeding theSpecial Purpose Cash Collateral Final Requirement Amount, the day on
which such Cooling Off Period for Interest Rate Futures ends).

Article 13-3.

Approval of Deregistration of FX Clearing Futures Clearing
Membership

13-3.1 If a Clearing Member applies for deregistration of the FX Clearing Futures
Clearing Membership pursuant to Article 11.1 hereof, the Clearing Member shall bederegistered at the time designated by the Exchange on the twenty-second (22nd) Japanesebanking day (meaning a bank business day in Japan; the same interpretation shall equally
apply hereinafter in this Article) from the day immediately following the day on which the
Exchange accepts such application or the time when unsettled FX Clearing Futurescontracts of such Clearing Member are liquidated and all FX Clearing cash settlements arecompleted, whichever is later.
13-3.2 Notwithstanding the provisions of Article 13-3.1 above, if the application
was made during the Cooling Off Period provided in Article 41-2 hereof or the
Cooling Off Period starts after the day on which such application was made but
before the deregistration of the FX Clearing Futures Clearing Membership takes
effect, the Clearing Member shall be deregistered at the latest time among those set
39

Clearing Regulations

forth in each Item below:(1)

at the time designated by the Exchange on the twelfth (12th) bankbusiness day from the day immediately following the day on which the
Exchange accepts such application;(2)

at the time when unsettled FX Clearing Futures contracts of such
Clearing Member are liquidated and all FX Clearing cash settlements arecompleted;(3)

at the time designated by the Exchange on the day on which such Cooling
Off Period ends; or(4)

If an obligation to deposit Special Purpose Cash Collateral defined in
Article 41-9 hereof arises during the Cooling Off Period, at the time
designated by the Exchange on the day on which the Special Purpose
Cash Collateral to be deposited which is calculated for the day on whichsuch Cooling Off Period ends (hereinafter referred to as the “Special
Purpose Cash Collateral Final Requirement Amount”) is deposited with
the Exchange (provided, however, if the Special Purpose Cash Collateral
has been deposited with the Exchange in the amount exceeding theSpecial Purpose Cash Collateral Final Requirement Amount, the day on
which such Colling Off Period ends).

Article 14. Public Notice and Notification of Deregistration of Clearing
Membership
Upon a Clearing Member’s deregistration of the clearing membership (including
deregistration due to disqualification from the clearing membership, which interpretation
shall equally apply hereinafter), the Exchange shall immediately make a public notice forsuch deregistration and shall notify such effect to the persons set forth below:(1)

Where the Clearing Member deregisters an Interest Rate Futures
Clearing Membership:
All Interest Rate Futures Clearing Members and the Non-Clearing
40

Clearing Regulations

Members in terms of Interest Rate Futures contracts(2)

Where the Clearing Member deregisters a Daily Futures Clearing
Membership:
All Daily Futures Clearing Members and Non-Clearing Members inconnection with FX Daily Futures transactions and Equity Index Daily
Futures transactions(3)

Where the Clearing Member deregisters an FX Clearing Futures
Clearing Membership:
All FX Clearing Futures Clearing Members

Article 14-2.

Fulfillment of Obligations by Deregistering Clearing Member

14-2.1 A Clearing Member who has deregistered the clearing membership shallappropriate money, securities or other equivalents to be returned to it by the Exchange forpayment of any and all of its outstanding obligations owed as a Clearing Member to other
Clearing Members, Non-Clearing Members or the Exchange.
14-2.2 If the money or securities specified in Article 14-2.1 above is not sufficient for
payment of the obligations owed to the Exchange among the outstanding obligations
specified in Article 14-2.1, the Clearing Member who has deregistered the clearing
membership as specified in Article 14-2.1 shall pay all of its outstanding obligations
corresponding to such deficiency by the day designated by the Exchange from time totime.

Article 14-2-2. Name Transfer of Clearing Membership
14-2-2.1
Name transfer of clearing membership shall be permitted only for a
person who obtains the clearing membership simultaneously with deregistration of aclearing membership deregistration applicant of the same type of clearing membership tobe obtained by such person, subject to the deregistration of the clearing membership
deregistration applicant, upon obtaining approval from the Exchange.
41

Clearing Regulations

14-2-2.2
A person who desires to obtain the clearing membership by name transfer
shall follow the procedures for acquisition of clearing membership specified in Section 2
above.
14-2-2.3
Notwithstanding Article 4.3 above, a person who obtains the clearing
membership by name transfer shall pay the name transfer charge in lieu of the clearing
registration fee for the clearing membership.
14-2-2.4
Notwithstanding the provision of Article 14-2-2.1 hereof, a clearing
membership deregistration applicant which is a Bridge Financial Institution, etc. shall not
be qualified for name transfer of clearing membership in principle.

Article 14-2-3. Clearing Membership Deregistration Fee
14-2-3.1
A Clearing Member who deregisters its clearing membership shall pay
the clearing deregistration fee by the date and time designated by the Exchange, regardlessof whether it deregisters upon filing of application for the deregistration under Article 11
hereof or due to any other reason.
14-2-3.2
If the Exchange determines that there is a special reason for which theClearing Member has to deregister, the Exchange may exempt the Clearing Member fromthe clearing deregistration fee in whole or in part.

Article 14-2-4. Application of these Clearing Regulations for Deregistering
Clearing Member
Where a Clearing Member deregisters the clearing membership, if there are any
rights and obligations arising from causes that existed before the deregistration, theprovisions of these Clearing Regulations and other rules and regulations of the Exchange
shall apply to such rights and obligations.

Section 4-2.

Investigation, etc. of Clearing Member
42

Clearing Regulations

Article 14-3.

Notifiable Matters

Before taking any of the following actions, a Clearing Member shall notify the
Exchange of the details thereof in accordance with the requirements prescribed by the
Exchange:(1)

Amendment to its articles of incorporation (other than those referred toin Article 14-3 (4) below or Article 14-4.1(6) or 14-4.1(9) hereof);(2)Merger or consolidation;(3)

Causing of succession of the whole or part of its business to anothercompany or succession of the whole or part of business from anothercompany due to corporate separation or spin-off (bunkatsu);(4)

Transfer of the whole or a material part of its business;(5)

Reduction of the Total Capital; or(6)

Close of financial instruments business or business conducted in thecapacity of a registered financial institution (hereinafter called the“Financial Instruments Business, etc.”).

Article 14-4.

Reportable Matters14-4.1 If any of the following events occurs to a Clearing Member, the Clearing Member
shall immediately report the details thereof to the Exchange in accordance with therequirements separately prescribed by the Exchange, unless the Exchange determines thatsuch reporting is not necessary:(1)

The Clearing Member has ceased to satisfy any of the qualification
criteria for clearing membership set forth in Article 5 hereof (excluding
the qualification criteria set forth in Article 5.9(4) (b), (c), (e) and (f),Article 5.10(4) (c), (e) and (f), Article 5.12(4) (b), (c), (e) and (f) and43

Clearing Regulations

Article 5.13(4) (b), (d) and (e));(1)-2With respect to the Daily Futures Clearing Member ineligible for
Securities, etc. Clearing-Brokering Contracts not guaranteed by its
parent company or the FX Clearing Futures Clearing Member when it
acquired the clearing membership, its net asset value falls below threehundred million Japanese Yen (¥300,000,000);(1)-3The Daily Futures Clearing Member ineligible for Securities, etc.
Clearing-Brokering Contracts or the FX Clearing Futures Clearing
Member falls under any of the following cases;(a)With respect to a financial instruments firm, its Capital-to-Risk
Ratio as defined in Paragraph 1 of Article 46-6 of the Act falls
below one hundred and forty percent (140%);(b)With respect to a special financial instruments firm, its
Consolidated Capital-to-Risk Ratio on Downstream
Consolidation falls below one hundred and forty percent(140%);(c)

With respect to a designated special financial instruments firm,in relation to its Consolidated Capital-to-Risk Ratio on the
Uniform International Standard, the Consolidated Common
Equity Tier 1 Ratio falls below two point two five percent(2.25%), the Consolidated Tier 1 Ratio falls below three percent(3%) or the Total Consolidated Capital-to-Risk Ratio falls
below four percent (4%) or the Consolidated Capital-to-Risk
Ratio on Sample Downstream Consolidation falls below one
hundred and forty percent (140%);(2)

The Clearing Member falls under any of the events mentioned in each
Item of Article 29-4, Paragraph 1 or each Item of Article 33-8, Paragraph
1 of the Act;

(3)

The Clearing Member has become or is likely to become insolvent;44

Clearing Regulations

(4)The Clearing Member's net asset value has decreased by twenty percent(20%) or more, compared with the net asset value as of the Clearing
Member's latest fiscal year end or the latest net asset value reported to
the Exchange in accordance with this Item (4);(5)

An order of attachment (other than those referred to in Item (10) below
of this Article 14-4.1) has been imposed upon the Clearing Member bycoercive collection of tax delinquency or by other reason;(6)

The Clearing Member’s Total Capital has increased, or the aggregate
number of shares authorized to be issued by the Clearing Member or its
equivalent has been changed;(7)

There has been a change in the shareholders or investors who make acontribution in an amount of ten percent (10%) or more of the Clearing
Member’s Total Capital under its own name or another person's name;(8)

The Clearing Member has taken over the whole or a substantial part ofbusiness;(9)

There has been a change in a Clearing Member's principal office or its
office or branch through which the Clearing Member acts as counterparty
to the Exchange operating financial instruments obligation assumption
business;(10)

The Clearing Member has been subject to an inquiry, inspection,
detention, visitation, investigation, attachment, hearing, disciplinary
measure or punishment pursuant to the applicable provisions of the Act
or the laws and regulations relevant thereto or of any equivalent foreignlaws or regulations; provided, however, that the foregoing shall notinclude the events referred to in Item (2) above of this Article 14-4.1 only
if such events are related to market derivatives transactions, etc.,(meaning market derivative transactions and overseas market derivativetransactions, which interpretation shall equally apply hereinafter) ortransactions on commodity markets;(11)

The Clearing Member has been imposed disciplinary measures by any
45

Clearing Regulations

other financial instruments exchange or commodity exchange, any
financial instruments firms association or commodity futuresassociation, or any other equivalent exchange or organization in foreigncountries; provided, however, that the foregoing shall be limited to thedisciplinary measures relating to market derivatives transactions, etc. ortransactions on commodity markets;(12)

A director or officer of the Clearing Member has been fined or subject tothe heavier punishment in accordance with the provisions of the Act andthe laws and regulations thereunder, the Foreign Exchange and Foreign
Trade Act (Act no. 228 of 1949, hereinafter called the “Foreign ExchangeAct”) and any regulations thereunder (hereinafter called the “Foreign
Exchange Acts”), the Commodity Derivatives Act (Act No. 239 of 1950,
hereinafter called the “Commodity Derivatives Act”) and any regulations
thereunder (hereinafter called the “Commodity Derivatives Acts”) , orany similar laws or regulations in foreign countries; provided, however,that the foregoing shall be limited to those relating to market derivatives
transactions, etc. or transactions on commodity markets;(13)

The Clearing Member has been revoked the registration of financial
instruments firm or registered financial institution;(14)

The Clearing Member has changed any type or method of operations of
its Financial Instruments Business, etc. relating to market derivatives
transactions on the Exchange Market;(15)

The Clearing Member has become a party to a litigation relating tomarket derivatives transactions on the Exchange Market or brokerage
service therefor, or such litigation has come to a conclusion; or(16)There has occurred any other event for which the Exchange deems it
necessary to have a report submitted by the Clearing Member.

14-4.2 If a corporation which has a Clearing Member as its subsidiary or a corporation
designated by the Exchange as substantially controlling a Clearing Member (hereinafter
called a “Parent Company”) falls under any of the events set forth in Article 14-3(5) above
or Article 14-4.1(3), 14-4.1(4) or 14-4.1(5) above, the Clearing Member shall immediately
46

Clearing Regulations

report the details thereof to the Exchange in accordance with the requirements prescribedby the Exchange. In this case, “the net asset value as of the Clearing Member's latest
fiscal year end or the latest net asset value reported to the Exchange in accordance withthis Item (4)” referred to in Article 14-4.1(4) above shall be replaced with “the Parent
Company’s net asset value as of its latest fiscal year end.”
14-4.3 If a Clearing Member has become a party to a litigation in connection with linked
market derivatives transactions, as such term is defined in Article 2(6) of the Trading
Regulations or ordering thereof, Acceptance of Brokering Linked Market Derivatives
Transactions, Acceptance of Linked Clearing or the arising of an L-T Link Position as suchterm is defined in Article 2(7) of the Trading Regulations, or if such litigation has come toa conclusion, the Clearing Member shall immediately report the details thereof to the
Exchange in accordance with the requirements prescribed by the Exchange.
14-4.4 If any of the events set forth below occurs, a Designated Clearing Member shallforthwith notify the Exchange of the contents thereof:(1)

When the Non-Clearing Member who executed the Clearing Agreementwith the Designated Clearing Member fails to perform its obligation
against the Designated Clearing Member;(2)

When the Designated Clearing Member comes to know that the NonClearing Member who executed the Clearing Agreement with the
Designated Clearing Member has suspended payment, or a petition forcommencement of bankruptcy proceedings, commencement of civil
rehabilitation proceedings, commencement of corporate reorganization
proceedings or commencement of special liquidation has been filed or
the equivalent or similar proceedings have been petitioned under theforeign laws and regulations with respect to such Non-Clearing Member;(3)

when there arises a reasonable cause which necessitates the preservationof the claims against the Non-Clearing Member who executed theClearing Agreement with the Designated Clearing Member; or(4)

Other than the events set forth in the preceding Items, when it comes toknow that there arises a situation which impairs the credit of the NonClearing Member who executed the Clearing Agreement with the47

Clearing Regulations

Designated Clearing Member.
14-4.5 If and when any of the events separately prescribed by the Exchange occurs to a
Clearing Member which is a special financial instruments firm or a designated special
financial instruments firm, such Clearing Member shall report on the details of such eventto the Exchange without delay unless the Exchange determines such report not necessary.

Article 14-5.

Financial Reports

14-5.1 A Clearing Member shall periodically report its financial condition to the
Exchange in accordance with the requirements prescribed by the Exchange.
14-5.2 A Clearing Member controlled by its Parent Company shall periodically provide
the Exchange with the financial statements of the Parent Company in accordance with therequirements prescribed by the Exchange.
14-5.3 If and when a Daily Futures Clearing Member or an FX Clearing Futures Clearing
Member prepares the monitoring survey under Article 56-2 of the Act, it shall report on
the details of the monitoring survey to the Exchange in the manners prescribed by the
Exchange.
14-5.4 If and when a Daily Futures Clearing Member or an FX Clearing Futures Clearing
Member prepares the document under the Acts or files the notification with theCommissioner of the Financial Services Agency with respect to its Capital-to-Risk Ratio
and the Exchange deems it necessary, it shall report on its Capital-to-Risk Ratio to the
Exchange in the manners prescribed by the Exchange.
14-5.5 If and when a Daily Futures Clearing Member or an FX Clearing Futures Clearing
Member who is a special financial instruments firm prepares the document under the Acts
or files the notification with the Commissioner of the Financial Services Agency withrespect to its Consolidated Capital-to-Risk Ratio on Downstream Consolidation and the
Exchange deems it necessary, it shall report on such consolidated capital-to-risk ratio tothe Exchange in the manners prescribed by the Exchange.
14-5.6 If and when a Daily Futures Clearing Member or an FX Clearing Futures Clearing
Member who is a designated special financial instruments firm prepares the document
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Clearing Regulations

under the Acts or files the notification with the Commissioner of the Financial Services
Agency with respect to its Consolidated Common Equity Tier 1 Ratio with respect toConsolidated Capital-to-Risk Ratio on the Uniform International Standard, Consolidated
Tier 1 Ratio and Total Consolidated Capital-to-Risk Ratio or Consolidated Capital-to-Risk
Ratio on Sample Downstream Consolidation, and the Exchange deems it necessary, it shallreport on each such ratio to the Exchange in the manners prescribed by the Exchange.

Article 14-6.

Investigation against Clearing Members

14-6.1 In any one of the cases set forth in each Item below or if the Exchange otherwise
determines it necessary in light of operation of Exchange Market, the Exchange may
require a Clearing Member to submit a report or documents relevant to its business orassets or may cause the Exchange’s staff to inspect the actual state of the Clearing
Member’s business or assets, or its books and records, or other properties.
(1)

When the Exchange investigates the Clearing Member’s compliancewith any of the Act and any regulations thereunder (hereinafter called the“Acts”), the Foreign Exchange Acts, Commodity Derivatives Acts, or
any similar laws or regulations in foreign countries (together with theActs, hereinafter called “Acts, etc.”), or any orders or disciplinary
measures enforced by the competent administrative authorities under theActs, etc. (but limited to the orders or disciplinary measures relating tomarket derivatives transactions, etc. or transactions on commodity
markets), the Articles of Incorporation, Trading Regulations, Brokering
Terms, Clearing Agreement, these Regulations and other various rules
and regulations of the Exchange or orders or disciplinary measures
enforced thereunder, the Member Link Agreements or the just andequitable principle of trade;(2)

When the Exchange investigates the Clearing Member’s financial
condition;(3)

When the Exchange conducts an investigation to secure fairness ofmarket derivatives transactions on the Exchange Market; or(4)When any other financial instruments exchange or the financial
49

Clearing Regulations

instruments firms association (including any similar foreign entity) has
requested the Exchange to provide information in relation to an
investigation conducted by it to secure fairness of market derivatives
transactions, etc., and the Exchange determines it appropriate toaccommodate such request.
14-6.2 The Exchange may require a Clearing Member who is controlled by its Parent
Company to provide the Exchange with a report or documents relevant to the Parent
Company’s business or assets, when the Exchange deems it necessary in order to makeinvestigations of such Clearing Member in accordance with Articles 14-6.1 and 14-6.2
above, or in any other circumstances where the Exchange deems it necessary in light ofoperation of the Exchange Market.

Article 14-7.

Exception regarding Notifications, etc.

Provisions of Articles 14-3 through 14-6 above shall not be applied to a Clearing
Member if the Clearing Member has made notification or report to the Exchange inaccordance with Articles 55 through 58 of the Trading Member Regulations with respect
to the matters required to notify or report pursuant to Articles 14-3 through 14-6 above.

Section 5.

Disciplinary or Regulatory Measures on Clearing Members

Sub-section 1.

Disciplinary or Regulatory Measures

Article 14-8.

Clearing Member Acting in Concert with or having
Controlling Relationship with its Director or Officer or other
Person14-8.1 If the Exchange determines that the manner in which any Clearing Member isacting in concert with, holds control over, or is controlled by, any of its directors or officers
50

Clearing Regulations

or other person, is inadequate in light of operation of the Exchange Market, the Exchange
may conduct hearings against the Clearing Member and then, require the Clearing Member
to change, alter or amend such relationship. Provided, however, if such Clearing Member
submits a written statement, the submission thereof may substitute for the hearings.
14-8.2 If the Clearing Member does not agree to the hearings under Article 14-8.1 above
without due cause, the Exchange may require the change, alteration or amendment set forthin Article 14-8.1 above without the hearings.
14-8.3 If the Clearing Member determines that the requirement for change, alteration oramendment under Article 14-8.1 above is unreasonable, the Clearing Member may object
such requirement in writing by showing the ground of such objection to the Exchange,
within ten (10) business days (meaning the business day defined in Article 6-2 of theTrading Regulations, which interpretation shall equally apply hereinafter) from the day on
which the Clearing Member receives notice of such requirement from the Exchange.
14-8.4 When the Exchange receives the objection referred to in Article 14-8.3 above, it
shall hold a meeting of the board of directors without delay to discuss such objection.
14-8.5 If the meeting of the board of directors held pursuant to Article 14-8.4 above
determines that it be appropriate to modify or withdraw the requirement under Article 148.1 above, the Exchange shall immediately modify or withdraw such requirement.

Article 15(Deleted)

Article 15-2.

Disciplinary Measures on Clearing Members

15-2.1 If the Exchange deems that a Clearing Member falls under any of the events set
forth in the following Items, the Exchange may conduct hearings against the Clearing
Member and then, impose disciplinary measures set forth in the relevant Item on the
Clearing Member by the resolution of the board of directors:(1)

If the Clearing Member has been admitted to the clearing membershipby dishonest means:
51

Clearing Regulations

Disqualification from the clearing membership(2)

If the Clearing Member ceases to satisfy any of the qualification criteria
for clearing membership prescribed in Article 5 (provided, however, withrespect to the criteria of the financial resources for a Daily Futures
Clearing Member or an FX Clearing Futures Clearing Member, if such
Clearing Member ceases to satisfy any of the qualification criteria set
forth in Items (1) through (3) of Article 15-3.2):
Disqualification from the clearing membership(3)

If the Clearing Member becomes insolvent and is not likely to recover
therefrom with ease:
Disqualification from the clearing membership(4)

If the Clearing Member fails to perform its duties under any contract with
the Exchange or any other Clearing Member or any Non-Clearing
Member regarding market derivatives transactions on the Exchange
Market:Suspension from or restriction on assumption of obligations arising frommarket derivatives transactions on the Exchange Market effected in thename of the Clearing Member for six (6) months or less, suspension fromor restriction on assumption of obligations arising from L-T Link
Positions which are held in the name of the Clearing Member, or
disqualification from the clearing membership(5)

If the Clearing Member fails to pay or deposit any money, securities orother equivalents to the Exchange that the Clearing Member is required
to do so in the capacity of Clearing Member in accordance with therequirements prescribed by the Exchange:
Suspension from or restriction on assumption of obligations arising frommarket derivatives transactions on the Exchange Market effected in thename of the Clearing Member for six (6) months or less, suspension fromor restriction on assumption of obligations arising from L-T Link
52

Clearing Regulations

Positions which are held in the name of the Clearing Member, or
disqualification from the clearing membership(6)

If the Clearing Member is imposed disciplinary measures (limited only
to those relating to the market derivatives transactions, etc. or thetransactions on commodity markets) by any other financial instruments
exchange or commodity exchange, any financial instruments firms
association or commodity futures association or any other equivalentexchange or organization in foreign countries:
Suspension from or restriction on assumption of obligations arising frommarket derivatives transactions on the Exchange Market effected in thename of the Clearing Member for six (6) months or less, suspension fromor restriction on assumption of obligations arising from L-T Link
Positions which are held in the name of the Clearing Member, or
disqualification from the clearing membership(7)

If the Clearing Member fails to submit a notification in accordance with
Article 14-3 hereof or a report in accordance with Article 14-4 or 14-5
hereof or has submitted a false notification or report:
A fine of one hundred million Japanese Yen (¥100,000,000) or less,admonition, suspension from or restriction on assumption of obligations
arising from market derivatives transactions on the Exchange Market
effected in the name of the Clearing Member for six (6) months or less,or disqualification from the clearing membership(8)

If the Clearing Member refuses, hinders or evades any inspection under
Article 14-6 hereof, or fails to submit a report or document in accordancewith the said Article 14-6 or has submitted a false report or document, or
refuses, hinders or evades any investigation under Article 45 of theTrading Member Regulations:
A fine of one hundred million Japanese Yen (¥100,000,000) or less,admonition, suspension from or restriction on assumption of obligations
arising from market derivatives transactions on the Exchange Market
effected in the name of the Clearing Member for six (6) months or less,
53

Clearing Regulations

or disqualification from the clearing membership(9)

If the Clearing Member has acted, other than set forth in each of Items(1) through (8) above, in violation of any of the Acts, etc. or has become
subject to or has committed an act in violation of any disciplinary
measures imposed by the competent administrative authorities pursuant
thereto (but limited to the orders or disciplinary measures in connection
with market derivatives transactions, etc. or transactions on commodity
markets) or has committed an act in violation of the Articles ofIncorporation, the Trading Member Regulations, the Trading
Regulations, the Brokering Terms, any Clearing Agreement, theseClearing Regulations or other regulations or rules of the Exchange or any
disciplinary measures imposed by the Exchange pursuant thereto, or if
the Clearing Member has acted contrary to the just and equitableprinciple of trade:
A fine of one hundred million Japanese Yen (¥100,000,000) or less,admonition, suspension from or restriction on assumption of obligations
arising from market derivatives transactions on the Exchange Market
effected at the bid or offer submitted by the Clearing Member,suspension from or restriction on assumption of obligations arising frommarket derivatives transactions on the Exchange Market effected in thename of the Clearing Member for six (6) months or less, suspension fromor restriction on assumption of obligations arising from L-T Link
Positions which are held in the name of the Clearing Member, or
disqualification from the clearing membership(10)

If the Clearing Member has acted in violation of any Member Link
Agreement or contrary to the just and equitable principle of trade:
Admonition, suspension from or restriction on assumption of obligations
arising from L-T Link Positions which are held in the name of the
Clearing Member, suspension from or restriction on assumption of
obligations arising from market derivatives transactions on the Exchange
Market effected in the name of the Clearing Member, suspension fromor restriction on assumption of obligations arising from market
derivatives transactions on the Exchange Market for six (6) months or
54

Clearing Regulations

less, or disqualification from the clearing membership
15-2.2 If the Clearing Member has acted in violation of the Acts, etc. or any orders or
disciplinary measures imposed by the competent administrative authorities set forth in
Article 15-2.1(9) above and thereby been deemed to significantly deteriorate a reputationof the Exchange, the Clearing Member shall be subject to a hearing and be charged a fine
up to five hundred million yen (¥500,000,000) by the resolution of the board of directors.
15-2.3 Notwithstanding the provisions of each Item of Article 15-2.1 above, in the caseof any of the following items, the Exchange may conduct hearings against the relevant
Clearing Member and then, by the resolution of the board of directors, may impose on it
an admonition, suspension from or restriction on assumption of obligations arising frommarket derivatives transactions on the Exchange Market effected at the bid or offer
submitted by the Clearing Member, suspension from or restriction on assumption of
obligations arising from market derivatives transactions on the Exchange Market effectedin the name of the Clearing Member for six (6) months or less, or disqualify its relevant
clearing membership:(1)

In respect of a Daily Futures Clearing Member, if a corporation acting as
its guarantor and holding a majority of the voting rights of allshareholders of such Clearing Member fails to comply with theprovisions in Article 5.8(4)(g) or Article 5.10(4)(g) hereof for threeconsecutive periods in the financial reports set forth in Article 14-5.2
hereof (hereinafter called the “Financial Report” in this Article 15-2.3)
or it becomes insolvent and is unlikely to recover within the immediately
following business year.

(2)

In respect of an FX Clearing Futures Clearing Member, if a corporation
acting as its guarantor and holding a majority of the voting rights of allshareholders of such Clearing Member fails to comply with theprovisions in Article 5.13(4)(m) hereof for three consecutive periods inthe Financial Report or it becomes insolvent and is unlikely to recover
within the immediately following business year.

15-2.4 A disciplinary measure taken pursuant to Articles 15-2.1 and 15-2.2 above otherthan (i) a fine of over one hundred million yen (¥100,000,000) or (ii) disqualification fromthe clearing membership may be taken without the resolution of the board of directors.
55

Clearing Regulations

15-2.5 With respect to any of the disciplinary measures set forth in Articles 15-2.1 and
15-2.2 above, the Exchange may impose a fine together with suspension from or restriction
on assumption of obligations arising from market derivatives transactions on the Exchange
Market at the bid or offer submitted by the Clearing Member or admonition.

Article 15-2-2. Regulatory Measures for Inappropriate Controlling
Relationship, etc. of Clearing Member
If a Clearing Member falls under any of the events set forth in the following Items,
the Exchange may conduct hearings against the Clearing Member and then, suspend
assumption of obligations arising from market derivatives transactions, etc. or take othermeasures that may be deemed necessary and appropriate by the Exchange; in which case,if the measure taken is suspension of assumption of obligations arising from market
derivatives transactions, etc., the measure shall be taken by the resolution of the board of
directors:(1)

If the Clearing Member does not comply with the Exchange’s
requirement under Article 14-8 hereof to change, alter or amend themanner in which such Clearing Member is acting in concert with or holds
control over or is controlled by any of its directors or officers or any third
party;(2)

If one half (1/2) or more of the Clearing Member’s Total Capital is to beinvested or contributed by a party that the Exchange deems inappropriate
in light of operation of the Exchange Market; or(3)

If a counselor, advisor or person of any other title whatsoever, who has acontrolling power over the Clearing Member which is similar or superior
to that held by a director or officer of the Clearing Member, is deemed
inappropriate by the Exchange in light of operation of the Exchange
Market.

Article 15-2-3. Regulatory Measures for Defects in Risk Management System
56

Clearing Regulations

If the risk management system of a Clearing Member set forth in Article 10-3 isdetermined by the Exchange as being extremely inappropriate in light of the operation of
the Exchange Market, the Exchange may conduct hearings against the Clearing Member
and then, impose any regulatory measure deemed necessary and appropriate by the
Exchange for the improvement of the system.

Article 15-3.

Regulatory Measures on Insolvent or Potentially Insolvent
Clearing Member

15-3.1 If a Clearing Member has become insolvent or is deemed by the Exchange to be
likely to become insolvent, the Exchange may conduct hearings against the Clearing
Member and then, suspend assumption of obligations arising from market derivatives
transactions on the Exchange Market in whole or in part with respect to such Clearing
Member or take other measures deemed necessary and appropriate by the Exchange, until
the cause of such situation is removed.
15-3.2 If a Clearing Member falls under any of the cases set forth in the respective Items
below, the Exchange may conduct hearings against the Clearing Member and then,suspend assumption of obligations arising from market derivatives transactions on the
Exchange Market in whole or in part with respect to such Clearing Member or take othermeasures deemed necessary and appropriate by the Exchange, until the cause of suchsituation is removed:(1)

The amount of the paid-in capital of a Daily Futures Clearing Member
or an FX Clearing Futures Clearing Member falls below three hundred
million Japanese Yen (¥300,000,000) and it is unlikely to be recovered
promptly;(2)

With respect to the Daily Futures Clearing Member ineligible for
Securities, etc. Clearing-Brokering Contracts or an FX Clearing Futures
Clearing Member, neither of which has been guaranteed by its parent
company at its acquisition of the clearing membership, its net asset value
falls below three hundred million Japanese Yen (¥300,000,000) and it isunlikely to be recovered promptly;(3)

The Daily Futures Clearing Member ineligible for Securities, etc.
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Clearing Regulations

Clearing-Brokering Contracts or the FX Clearing Futures Clearing
Member falls under any of the following cases;(a)With respect to a financial instruments firm, its Capital-to-Risk
Ratio as defined in Paragraph 1 of Article 46-6 of the Act falls
below one hundred and twenty percent (120%) and it is unlikely
to be recovered promptly;(b)With respect to a special financial instruments firm, its
Consolidated Capital-to-Risk Ratio on Downstream
Consolidation falls below one hundred and twenty percent(120%) and it is unlikely to be recovered promptly; or(c)With respect to a designated special financial instruments firm,in relation to its Consolidated Capital-to-Risk Ratio on the
Uniform International Standard, the Consolidated Common
Equity Tier 1 Ratio falls below two point two five percent(2.25%), the Consolidated Tier 1 Ratio falls below three percent(3%) or the Total Consolidated Capital-to-Risk Ratio falls
below four percent (4%) or the Consolidated Capital-to-Risk
Ratio on Sample Downstream Consolidation falls below one
hundred and twenty percent (120%) and it is unlikely to be
recovered promptly;(4)

With respect to the Daily Futures Clearing Member or the FX Clearing
Futures Clearing Member, either of which has been guaranteed by its
parent company at its acquisition of the clearing membership, the parent
company of the Clearing Member ceased to satisfy the criteria of thefinancial resources set forth in Article 5.8 (4) (n) or Article 5.10 (4) (n),or Article 5.13 (4) (m) hereof and it is unlikely to be recovered promptly(excluding in the case of (5) below) with respect to the Daily Futures
Clearing Member; or(5)With respect to the Daily Futures Clearing Member eligible for
Securities, etc. Clearing-Brokering Contract, it ceased to satisfy thecriteria of the financial resources set forth in Article 5.7 (4) or Article 5.8(4) hereof and it is unlikely to be recovered promptly
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Clearing Regulations

Article 15-3-2. Regulatory Measures on Clearing Member who holds Excessive
Unsettled Contracts
15-3-2.1
If a Clearing Member is deemed by the Exchange to be holding excessive
unsettled market derivatives contracts (meaning the case where the risk equivalent amount(meaning the amount equivalent to the risk of loss which may occur due to fluctuation ofa price of the market derivatives contract) assumed to be incurred by the unsettled contracts
held by such Clearing Member is deemed excessive compared with its net asset value andother financial conditions and such risk equivalent amount arises from the contracts forthe account of the Clearing Member itself or the contracts based on the order of a small
number of Customers (including the contracts based on the order of Non-Clearing Member
for Securities, etc. Clearing-Brokering Contracts)), or if the Exchange deems it necessary
to mitigate the risk equivalent amount of such Clearing Member for other causes, theExchange may take any of the measures set forth in each item below or other measuresdeemed necessary by the Exchange:

15-3-2.2(1)

To increase the amount of clearing deposits to be deposited (meaning theamount of the Interest Rate Futures Clearing Deposit to be deposited set
forth in Article 31.2, the amount of the Daily Futures Clearing Deposit
to be deposited set forth in Article 31.3 or the amount of FX Clearing
Futures Clearing Deposit to be deposited set forth in Article 31.4; whichinterpretation shall equally apply in Article 15-3-3 below) or the
Exchange Margin, the FX Exchange Margin or the Equity Index
Exchange Margin (together with the clearing deposits, collectively
referred to as the “Exchange Margin, etc.” in this Article);(2)

To restrict the types of securities designated by the Exchange in the caseof appropriation of securities for the Exchange Margin, etc.; and(3)

To reduce the rate to be multiplied to the market price in the calculationof an appropriable amount in the case of appropriation of securities for
the Exchange Margin, etc.
If any of the measures set forth in Article 15-3-2.1 above is taken on the

Exchange Margin, etc. with respect to the market derivative contracts based on the order
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Clearing Regulations

of Customer or based on the order of Non-Clearing Member for Securities, etc. ClearingBrokering Contracts, the Clearing Member subject to such measures shall take the samemeasures on such Customer or such Non-Clearing Member.

Article 15-3-3. Regulatory Measures on Clearing Member where the Status of
Deposit of Security is Deemed Inappropriate
15-3-3.1

If a Clearing Member deposits the clearing deposit, the Exchange

Margin, the FX Exchange Margin, the Equity Index Exchange Margin, the FX Clearing
Exchange Margin and the market entry deposit (collectively referred to as the “Clearing
Deposit, etc.” in this Article) by share certificates and the number of such share certificatesfor each stock name exceeds the number of shares equivalent to five percent (5%) of thenumber of listed shares of such stock name, the Exchange may take any of the measures
set forth in each item below on such Clearing Member:(1)

To restrict stock names of securities designated by the Exchange in thecase of deposit of securities for the Clearing Deposit, etc.; and(2)

To reduce the rate to be multiplied to the market price in the calculationof an appropriable amount in the case of deposit of securities for the
Clearing Deposit, etc.

15-3-3.2
In addition to Article 15-3-3.1, when the Exchange deemed it necessary
in terms of securing the performance of obligations by a Clearing Member against the
Exchange, the Exchange may take any of the measures set forth in each item of Article 153-3.1 on such Clearing Member.

Article 15-4.

Lifting of Suspension from Assumption of Obligations Arisingfrom Market Derivatives Transactions, etc. or other
Regulatory Measures

15-4.1 If a Clearing Member is ordered suspension from assumption of obligations
arising from market derivatives transactions on the Exchange Market effected with respect
to such Clearing Member for an indefinite period in accordance with Article 15-2-2 or 153 hereof, after it removes the cause for such suspension, it may apply for lifting of such
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Clearing Regulations

suspension in writing accompanied by an explanatory statement of such removal.
15-4.2 If the Exchange deems appropriate to lift the suspension based on the application
set forth in Article 15-4.1 above, the Exchange shall approve such application.
15-4.3 If a Clearing Member who was ordered suspension from assumption of
obligations arising from market derivatives transactions on the Exchange Market effectedwith respect to it for an indefinite period in accordance with Article 15-2-2 or 15-3 hereof
fails to obtain approval referred to in Article 15-4.2 above within one (1) year from thedate of suspension, the Exchange may disqualify such Member from the clearing
membership by the resolution of the board of directors.

Article 15-5.

Objection, etc.

The provisions of the proviso to Article 14-8.1 and Article 14-8.2 shall apply
mutatis mutandis to the hearings set forth in Articles 15-2 through 15-3 hereof and theprovisions of Articles 14-8.3 through 14-8.5 hereof shall apply mutatis mutandis to thedisciplinary or regulatory measures set forth in Articles 15-2 through 15-3 hereof anddisqualification from the clearing membership set forth in Article 15-4.3 hereof.

Article 15-6.

Disciplinary Measures on Clearing Member under Statutory
Sanctions15-6.1 If a Clearing Member is sanctioned suspension from the whole or a part ofFinancial Instruments Business, etc. by virtue of the Acts, etc., the Exchange shall suspend
or impose restrictions on, as the case may be, assumption of obligations arising frommarket derivatives transactions on the Exchange Market effected at the bid or offer
submitted by the Clearing Member, in accordance with the scope of the suspension.
15-6.2 If a Clearing Member is sanctioned suspension from the whole or a part ofFinancial Instruments Business, etc. by virtue of the Acts, etc., the Exchange may suspend
or impose restrictions on, as the case may be, assumption of obligations arising from L-T
Link Positions which are held in the name of the Clearing Member in accordance with thecontents of the sanction.
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Article 15-7.

Breach of Just and Equitable Principle of Trade

A breach of the just and equitable principle of trade set forth in this Section 5means any action that may deteriorate a reputation of the Exchange or any Clearing
Member or Non-Clearing Member or violate a good faith principle toward the Exchangeor any Clearing Member or Non-Clearing Member or any Linked Overseas Exchange, etc.
or members thereof, in light of operation of the Exchange Market, including, but notlimited to, the following actions:(1)Interference with or disturbance of the business of the Exchange or any
other Clearing Member or Non-Clearing Member;(2)

Any fraudulent action, dishonest or improper conduct, or extremely
careless or negligent business operation in connection with market
derivatives transactions, etc. or brokerage service therefor, etc.; or(3)

Any fraudulent action, dishonest or improper conduct, or extremely
careless or negligent business operation in connection with linked market
derivatives transactions or placement of orders therefor or Acceptance ofBrokering Linked Market Derivatives Transactions or Acceptance ofLinked Clearing, or causing of L-T Link Positions to arise.

Article 15-8.

Recommendation to Clearing Members

15-8.1 If the Exchange deems a Clearing Member’s business or asset inappropriate inlight of operation of the Exchange Market, the Exchange may recommend the Clearing
Member to take appropriate measures.
15-8.2 When the Exchange deems it necessary with respect to its recommendation under
Article 15-11.1 above, the Exchange may require the concerned Clearing Member to report
the actions taken.

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Sub-section 2.

Effect of Disciplinary or Regulatory Measures

Article 15-9.

Market Derivatives Contracts for Suspended or Restricted
Clearing Member

15-9.1 If a Clearing Member is imposed by the Exchange as a Disciplinary Measure, etc.
(meaning the disciplinary or regulatory measures set forth in Articles 15-2 through 15-3
hereof, disqualification from the clearing membership set forth in Article 15-4.3 hereof
and the actions set forth in Article 15-6 hereof, which interpretation shall equally apply
hereinafter) suspension from or restriction on assumption of obligations arising frommarket derivatives transactions on the Exchange Market effected at the bid or offer
submitted by itself, the Exchange may, during the period of such suspension or restriction,
cause to be transferred to any other Clearing Member or otherwise liquidated in the mannerthat the Exchange deems necessary, any of the unsettled market derivatives contracts
executed on the Exchange Market at the bid or offer submitted by such suspended or
restricted Clearing Members.
15-9.2 The Exchange may assume obligations arising from market derivatives
transactions executed on the Exchange Market at the bid or offer submitted by the Clearing
Member who has been imposed the Disciplinary Measures, etc. pursuant to Article 15-7.1
above, to the extent necessary for such Clearing Member to proceed with the transfer or
liquidation set forth in Article 15-7.1 above.
15-9.3 If a Clearing Member is imposed by the Exchange as a Disciplinary Measure, etc.
suspension from or restriction on assumption of obligations arising from market
derivatives transactions on the Exchange Market, the Exchange may, during the period ofsuch suspension or restriction, cause to be transferred to any other Clearing Member orotherwise liquidated in the manner that the Exchange deems necessary, any of the unsettled
L-T Link Positions which have arisen in the name of such Clearing Member.
15-9.4 The provisions of Article 15-9.2 above shall apply mutatis mutandis to the transfer
or liquidation set forth in Article 15-9.3 above.
15-9.5 If the Exchange deems it necessary in the liquidation pursuant to Article 15-9.1
or Article 15-9.3 (limited to the liquidation of the unsettled Interest Rate Futures contracts
executed on the Exchange Market at the bid or offer submitted by, or the unsettled L-T
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Clearing Regulations

Link Positions which have arisen in the name of, the Clearing Member subjected to theDisciplinary Measure, etc. set forth in Article 15-9.1 (hereinafter called “Unsettled
contracts for Interest Rate Futures transactions, etc.” in this Article 15-9)), the Exchange
may take procedures for an auction for the purpose of liquidation of the Unsettled contracts
for Interest Rate Futures transactions, etc. of such Clearing Member (hereinafter called a“Position Liquidation Auction”).
15-9.6 The Exchange may discuss how to deal with the Position Liquidation Auction of
the Unsettled contracts for Interest Rate Futures transactions, etc. specified in Article 159.5 with Interest Rate Futures Clearing Members other than the relevant Interest Rate
Futures Clearing Member. When the Exchange holds such discussion, the Interest Rate
Futures Clearing Members other than the relevant Interest Rate Futures Clearing Member
shall make efforts to agree to hold such discussion.
Article 15-9-2. Unsettled FX Daily Futures Contracts of FX Market Maker onwhom Regulatory Measures Such as Suspension from
Assumption of Obligations are Taken
15-9-2.1

If the Exchange imposes the regulatory measures set forth in Article 15-

3.1 or the disciplinary measures set forth in Article 15-6.1 on the Daily Futures Clearing
Member designated as an FX Market Maker (meaning the “FX Market Maker” as definedin Article 2 (4) of the Special Provisions for Trading Regulations for FX Daily Futures
Transactions (hereinafter referred to as the “FX Special Provisions”); which interpretation
shall equally apply in this Article) in connection with FX Daily Futures transactions and,pursuant to Article 15-9.1, the Exchange causes to be transferred to any other Daily Futures
Clearing Member designated as an FX Market Maker (hereinafter referred to as the “FX
Market Maker Clearing Member Not Subject to Measures” in this Article) or a Daily
Futures Clearing Member (hereinafter referred to as the “Designated Daily Futures
Clearing Member” in this Article) who has entered into a Clearing Agreement with a NonClearing Member designated as an FX Market Maker in connection with FX Daily
Futures transactions (hereinafter referred to as the “Non-Clearing Member FX Market
Maker” in this Article) any of the unsettled FX Daily Futures contracts executed by thebusiness conducted by such Daily Futures Clearing Member (hereinafter referred to as the“FX Market Maker Clearing Member Subject to Measures” in this Article) in order toperform its obligations to quote an MM bid or offer, the price for such transfer (hereinafterreferred to as the “MM etc. Position Transfer Price” in this Article), the volume of theunsettled FX Daily Futures contracts to be transferred to an FX Market Maker Clearing
Member Not Subject to Measures (hereinafter referred to as the “MM Position Transfer
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Clearing Regulations

Volume” in this Article) and the volume of the unsettled FX Daily Futures contracts to betransferred to a Designated Daily Futures Clearing Member (hereinafter referred to as the“Designated Clearing Member Transfer Volume” in this Article) shall be determined by
the Exchange in the manner set forth below respectively:(1)

MM etc. Position Transfer Price shall be a price deemed appropriate by
the Exchange for each type of FX Daily Futures contracts, taking into
consideration the foreign exchange rates on a trading day whose opening
time of the Market Trading Period of the relevant type of FX Daily
Futures contracts falls on the first business day following the day on
which the regulatory measures set forth in Article 15-3.1 or thedisciplinary measures set forth in Article 15-6.1 was imposed on the FX
Market Maker Clearing Member Subject to Measures; and(2)

MM Position Transfer Volume shall be a volume of the unsettled FX
Daily Futures contracts with respect to each type of FX Daily Futurestransactions divided by the number of FX Market Maker Clearing
Members Not Subject to Measures and Non-Clearing Member FX
Market Maker who are obliged to quote an MM bid or offer with respect
to such FX Daily Futures transactions.

(3)

Designated Clearing Member Transfer Volume shall be, for each type of
FX Daily Futures contracts, the volume determined between the
Designated Daily Futures Clearing Members and each Non-Clearing
Member FX Market Maker, up to a ceiling of the number of NonClearing Member FX Market Makers who are obliged to quote an MM
bid or offer with respect to such FX Daily Futures contracts and haveentered into Clearing Agreements with Designated Daily Futures
Clearing Members, multiplied by the volume of the unsettled FX Daily
Futures contracts with respect to such FX Daily Futures contracts,
divided by the number of FX Market Maker Clearing Member Not
Subject to Measures and Non-Clearing Member FX Market Makers for
the FX Daily Futures contracts (and any fraction resulting therefrom shallbe rounded up).

15-9-2.2

Any matters deemed necessary by the Exchange in connection with thecalculation of MM Position Transfer Volume shall be prescribed by the Exchange from65

Clearing Regulations

time to time.
15-9-2.3
If the Exchange judges that it is not appropriate to determine the MM
etc. Position Transfer Price in the manner set forth in Article 15-9-2.1 (1) above, theExchange shall determine the MM etc. Position Transfer Price in the manner deemed
appropriate by the Exchange from time to time.
15-9-2.4
If the Exchange judges that it is not appropriate to determine the MM
Position Transfer Volume in the manner set forth in Article 15-9-2.1 (2) above, theExchange shall determine the MM Position Transfer Volume in the manner deemed
appropriate by the Exchange from time to time.

Article 15-9-3. Unsettled Equity Index Daily Futures Contracts of Equity
Market Maker on whom Regulatory Measures Such as
Suspension from Assumption of Obligations are Taken
15-9-3.1

If the Exchange imposes the regulatory measures set forth in Article 15-

3.1 or the disciplinary measures set forth in Article 15-6.1 on the Daily Futures Clearing
Member designated as an Equity Index Market Maker (meaning the “Equity Index Market
Maker” as defined in Article 2.1 (4) of the Special Provisions for Trading Regulations for
Equity Index Daily Futures Transactions (hereinafter referred to as the “Equity Index
Special Provisions”); which interpretation shall equally apply in this Article) in connection
with Equity Index Daily Futures transactions and, pursuant to Article 15-9.1, the Exchange
causes to be transferred to any other Daily Futures Clearing Member designated as an
Equity Index Market Maker (hereinafter referred to as the “Equity Index Market Maker
Clearing Member Not Subject to Measures” in this Article) or a Daily Futures Clearing
Member (hereinafter referred to as the “Designated Daily Futures Clearing Member” inthis Article) who has entered into a Clearing Agreement with a Non-Clearing Member
designated as an Equity Index Market Maker (hereinafter referred to as the “Non-Clearing
Member Equity Index Market Maker” in this Article), any of the unsettled Equity Index
Daily Futures contracts executed by the business conducted by such Daily Futures
Clearing Member (hereinafter referred to as the “Equity Index Market Maker Clearing
Member Subject to Measures” in this Article) in order to perform its obligations to quotean MM bid or offer, the price for such transfer (hereinafter referred to as the “MM etc.
Position Transfer Price” in this Article), the volume of the unsettled Equity Index Daily
Futures contracts to be transferred to an Equity Index Market Maker Clearing Member Not
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Subject to Measures (hereinafter referred to as the “MM Position Transfer Volume” in this
Article) and the volume of the unsettled Equity Index Daily Futures contracts to betransferred to a Designated Daily Futures Clearing Member (hereinafter referred to as the“Designated Clearing Member Transfer Volume” in this Article) shall be determined by
the Exchange in the manner set forth below respectively:(1)

MM etc. Position Transfer Price shall be a price deemed appropriate by
the Exchange for each issue of Equity Index Daily Futures contracts,
taking into consideration the prices, etc. of the equity index under the
relevant Equity Index Daily Futures contracts on a trading day whose
opening time of the Market Trading Period of the relevant issue of Equity
Index Daily Futures transactions falls on the first business day following
the day on which the regulatory measures set forth in Article 15-3.1 or
the disciplinary measures set forth in Article 15-6.1 was imposed on the
Equity Index Market Maker Clearing Member Subject to Measures;(2)

MM Position Transfer Volume shall be a volume of the unsettled Equity
Index Daily Futures contracts with respect to each issue of Equity Index
Daily Futures transactions divided by the number of Equity Index Market
Maker Clearing Members Not Subject to Measures and Non-Clearing
Member Equity Index Market Maker who are obliged to quote an MM
bid or offer with respect to such Equity Index Daily Futures transactions;
and

(3)

Designated Clearing Member Transfer Volume shall be, for each issues ofEquity Index Daily Futures contracts, the volume determined between the
Designated Daily Futures Clearing Members and each Non-Clearing
Member Equity Index Market Maker, up to a ceiling of the number of
Non-Clearing Member Equity Index Market Makers who are obliged toquote an MM bid or offer with respect to such Equity Index Daily Futurescontracts and have entered into Clearing Agreements with DesignatedDaily Futures Clearing Members, multiplied by the volume of theunsettled Equity Index Daily Futures contracts with respect to such Equity
Index Daily Futures contracts, divided by the number of Equity Index
Market Maker Clearing Member Not Subject to Measures and NonClearing Member Equity Index Market Makers for the Equity Index Daily
Futures contracts (and any fraction resulting therefrom shall be rounded
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up).
15-9-3.2
Any matters deemed necessary by the Exchange in connection with thecalculation of MM Position Transfer Volume shall be prescribed by the Exchange fromtime to time.
15-9-3.3
If the Exchange judges that it is not appropriate to determine the MM
etc. Position Transfer Price in the manner set forth in Article 15-9-3.1 (1) above, theExchange shall determine the MM etc. Position Transfer Price in the manner deemed
appropriate by the Exchange from time to time.
15-9-3.4
If the Exchange judges that it is not appropriate to determine the MM
Position Transfer Volume in the manner set forth in Article 15-9-3.1 (2) above, theExchange shall determine the MM Position Transfer Volume in the manner deemed
appropriate by the Exchange from time to time.

Article 15-10.

Market Derivatives Contracts for Non-Clearing Member’s
Account in Relation to Suspended or Restricted Designated
Clearing Member

15-10.1
If a Designated Clearing Member is imposed suspension fromassumption of obligations arising from market derivatives transactions or otherDisciplinary Measure, etc., the Exchange may cause to be suspended assumption of
obligations arising from market derivatives transactions on the Exchange Market to bemade in the name of such Designated Clearing Member at the bid or offer submitted by a
Non-Clearing Member who has entered into a Clearing Agreement with such Designated
Clearing Member.
15-10.2
If the Exchange has suspended assumption of obligations arising frommarket derivatives transactions in accordance with Article 15-10.1 above, the Exchange
may cause to be transferred to any other Clearing Member or otherwise liquidated in themanner that the Exchange deems necessary, any of the unsettled market derivatives
contracts executed on the Exchange Market at the bid or offer submitted by the NonClearing Member in the name of the Designated Clearing Member to whom the suspension
from assumption of obligations arising from market derivatives transactions has been
imposed.
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15-10.3
Notwithstanding the provisions of Article 15-10.1 above, the Exchange
may assume obligations arising from market derivatives transactions executed on the
Exchange Market at the bid or offer submitted by the Non-Clearing Member in the nameof the Designated Clearing Member to whom the suspension from assumption of
obligations arising from market derivatives transactions has been imposed, to the extent
necessary for such Non-Clearing Member to proceed with the transfer or liquidation set
forth in Article 15-10.2 above.
15-10.4
If a Designated Clearing Member is imposed suspension fromassumption of obligations arising from market derivatives transactions or otherDisciplinary Measure, etc., the Exchange may suspend assumption of obligations arisingfrom L-T Link Positions held in the name of such Designated Clearing Member for theaccount of a Non-Clearing Member who has entered into a Clearing Agreement with such
Designated Clearing Member.
15-10.5
If the Exchange has suspended assumption of obligations arising frommarket derivatives transactions in accordance with Article 15-10.1 above, the Exchange
may cause to be transferred to any other Clearing Member or otherwise liquidated in themanner that the Exchange deems necessary, any of the unsettled L-T Link Positions whichhave arisen in the name of such Designated Clearing Member for the account of such NonClearing Member.
15-10.6
The provisions of Article 15-10.3 above shall apply mutatis mutandis to
the transfer or liquidation set forth in Article 15-10.5 above.
15-10.7

If the Exchange deems it necessary in the liquidation pursuant to Article

15-10.2 or Article 15-10.5 (limited to the liquidation of the unsettled Interest Rate Futurescontracts executed in the name of the Designated Clearing Member having been subjectedto the Disciplinary Measure, etc. set forth in Article 15-10.1 on the Exchange Market atthe bid or offer submitted by the Non-Clearing Member who has entered into the Clearing
Agreement with such Designated Clearing Member or the unsettled L-T Link Positions
which have arisen in the name of such Designated Clearing Member for the account ofsuch Non-Clearing Member (hereinafter called “Unsettled contracts for Interest Rate
Futures transactions, etc. of Non-Clearing Member” in this Article 15-10)), the Exchange
may hold a Position Liquidation Auction for the purpose of liquidation of the Unsettled
contracts for Interest Rate Futures transactions, etc. of Non-Clearing Member (hereinafter69

Clearing Regulations

called a “Position Liquidation Auction for Non-Clearing Member”).
15-10.8
The Exchange may discuss how to deal with the Position Liquidation
Auction for Non-Clearing Member specified in Article 15-10.7 with Interest Rate Futures
Clearing Members other than the relevant Designated Clearing Member. When the
Exchange holds such discussion, the Interest Rate Futures Clearing Members other than
the relevant Designated Clearing Member shall make efforts to agree to hold suchdiscussion.
Article 15-10-2. Unsettled FX Clearing Futures Contracts of FX Clearing
Futures Clearing Member on which Regulatory Measures
Such as Suspension from Assumption of Obligations are Taken
15-10-2.1
If the Exchange imposes the regulatory measures set forth in Article 153.1 or the disciplinary measures set forth in Article 15-6.1 on the FX Clearing Futures
Clearing Member and, pursuant to Article 15-9.1, the Exchange causes such FX Clearing
Futures Clearing Member (hereinafter referred to as the “FX Clearing Futures Clearing
Member Subject to Measures” in this Article) to liquidate the unsettled FX Clearing
Futures contracts executed at the bids or offers submitted by such FX Clearing Futures
Clearing Member Subject to Measures (hereinafter referred to as the “Unsettled FX
Clearing Futures Contracts” in this Article) as deemed necessary by the Exchange, theExchange shall cause the FX Clearing Futures Clearing Member Subject to Measures toresell or repurchase all the Unsettled FX Clearing Futures Contracts (hereinafter referred
to as the “Liquidation Transaction”) for its own account in order to liquidate such Unsettled
FX Clearing Futures Contracts in the manner set forth below:(1)

For each type of Unsettled FX Clearing Futures Contracts, the Exchange
shall designate an FX Clearing Futures Clearing Member as acounterparty of the Liquidation Transaction from among those who have
LP Trading Membership and has filed the notification pursuant to Article
12 of the Special Provisions for Trading Regulations for FX Clearing
Futures Transactions (hereinafter referred to as the “FX Clearing Special
Provisions”) for such type of FX Clearing Futures contracts (suchdesignated FX Clearing Futures Clearing Member shall be hereinafterreferred to as the “Designated FX Clearing Futures Clearing Member”).

(2)

The Exchange shall notify the Designated FX Clearing Futures Clearing
Members of the volume of each type of Unsettled FX Clearing Futures
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Contracts divided by the number of the Designated FX Clearing Futures
Clearing Members (hereinafter referred to as the “Liquidation Volume”).
(3)

Upon receipt of such notice, the Designated FX Clearing Futures
Clearing Member shall promptly quote a price appropriate for the
Liquidation Transaction (hereinafter referred to as the “Liquidation
Price”) to the Exchange in light of the then current foreign exchange
rates. In such case, the Designated FX Clearing Futures Clearing
Member shall submit the materials evidencing the appropriateness of theLiquidation Price to the Exchange in accordance with the Close-out
Amount method specified in 2002 ISDA Master Agreement published byInternational Swaps and Derivatives Association, Inc. (hereinafterreferred to as “ISDA”) in 2002.

(4)

The Exchange shall cause the Liquidation Transaction to be executed in
the relevant Liquidation Volume at the Liquidation Price specified in
Article 15-10-2.1(3) above with respect to the Unsettled FX Clearing
Futures Contracts of the FX Clearing Futures Clearing Member Subject
to Measures with each Designated FX Clearing Futures Clearing
Member as a counterparty.

15-10-2.2
Any matters deemed necessary by the Exchange in connection with thecalculation of Liquidation Volume shall be prescribed by the Exchange from time to time.
15-10-2.3
If the Exchange judges that it is not appropriate to determine theLiquidation Volume in the manner set forth in Article 15-10-2.1 (2) above, the Exchange
may determine the Liquidation Volume in the manner deemed appropriate by the Exchange
from time to time.
15-10-2.4
If the Exchange judges that it is not appropriate to determine theLiquidation Price in the manner set forth in Article 15-10-2.1 (3) above such as in the casewhere the Liquidation Price quoted by the Designated FX Clearing Futures Clearing
Member is judged as being significantly different from the prevailing foreign exchange
rates or the Designated FX Clearing Futures Clearing Member fails to evidence theappropriateness of the Liquidation Price, and so on, the Exchange may determine theLiquidation Price in the manner deemed appropriate by the Exchange from time to time.
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Article 15-10-3.

Early Termination

15-10-3.1
In the event that the Exchange conducts the Position Liquidation Auction(including the “Position Liquidation Auction for Non-Clearing Member” specified in
Article 15-10.7; the same interpretation shall equally apply in this Article), if there remain
the Unsettled contracts for Interest Rate Futures transactions, etc. (including the “Unsettled
contracts for Interest Rate Futures transactions, etc. of Non-Clearing Member” specified
in Article 15-10.7; the same interpretation shall equally apply in this Article) even after the
Position Liquidation Auction has been conducted, or the loss incurred by the Exchange
through the Position Liquidation Auction is not likely to be compensated by the First
Additional Clearing Contribution for Interest Rate Futures specified in Article 40.6, thepositions of the Unsettled contracts for Interest Rate Futures transactions, etc. subject to
the Position Liquidation Auction (hereinafter referred to as the “positions subject to earlytermination” and a Clearing Member holding such positions shall be hereinafter referred
to as the “Clearing Member subject to early termination”) as well as the positions
designated and allocated in the manner separately prescribed by the Exchange among thepositions or the L-T Link Positions for Interest Rate Futures transactions held by the
Clearing Members other than the Clearing Member subject to early termination(hereinafter referred to as the “position to be allocated for early termination” and a
Clearing Member holding such positions shall be hereinafter referred to as the “Clearing
Member whose positions are to be allocated for early termination” shall automaticallyterminate before maturity at the time from time to time designated by the Exchange
without any separate declaration of intent from the Exchange, the Clearing Member
subject to early termination or the Clearing Member whose positions are to be allocatedfor early termination.
15-10-3.2
The early termination referred to in Article 15-10-3.1 shall mean that thepositions subject to early termination or the positions to be allocated for early termination
terminate before the respective last trading days, due to any cause other than offsetting
notification specified in Article 42.
15-10-3.3
In the event of early termination, it shall be deemed that the Clearing
Member subject to early termination or the Clearing Member whose positions are to beallocated for early termination has notified offsetting transactions for the positions subject
to early termination or the positions to be allocated for early termination.
15-10-3.4
In the case of Article 15-10-3.3, the Interest Rate Futures Clearing
Member shall pay to or receive from the Exchange variation at early termination, applying,mutatis mutandis, the provisions on the payment and receipt of monies for mark-to-market
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Clearing Regulationsspecified in Chapter X.
15-10-3.5
The variation at early termination referred to in Article 15-10-3.4 shallmean the amount calculated by the Exchange by deeming that, with respect to the positions
subject to early termination or the positions to be allocated for early termination, reverse
transactions for Unsettled contracts for Interest Rate Futures transactions etc. subject tooffsetting are executed at the daily settlement price (meaning the daily settlement pricespecified in Article 45) or the Daily Settlement Price (meaning the Daily Settlement Pricespecified in Article 90 and Article 90-46) on the trading day of the early termination.
15-10-3.6
In addition to Articles 15-10-3.1 through 15-10-3.5 above, the mattersnecessary for early termination shall be prescribed by the Exchange at any appropriate
time.
Article 15-11. Notification and Announcement of Disciplinary Measures, etc.
15-11.1
When the Exchange has imposed any Disciplinary Measure, etc. on a
Clearing Member set forth in each Item below, the Exchange shall notify such effect to thepersons set forth in such Item and make announcement to that effect:(1)

Interest Rate Futures Clearing Member
All Interest Rate Futures Clearing Members and the Non-Clearing
Members in terms of Interest Rate Futures contracts(2)

Daily Futures Clearing Member
All Daily Futures Clearing Members and all Non- Clearing Members inconnection with FX Daily Futures transactions and Equity Index Daily
Futures transactions(3)

FX Clearing Futures Clearing Member
All FX Clearing Futures Clearing Members

15-11.2
If a Clearing Member is imposed by the Exchange as a Disciplinary
Measure, etc. suspension from or restriction on assumption of obligations arising frommarket derivatives transactions on the Exchange Market at the bid or offer submitted byitself, such Member shall place a notice to that effect at its office and other appropriate
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places in accordance with the requirements prescribed by the Exchange.
15-11.3
If a Clearing Member is imposed by the Exchange as a Disciplinary
Measure, etc. suspension from or restriction on assumption of obligations arising from LT Link Positions, such Member shall place a notice to that effect at its office and otherappropriate places in accordance with the requirements prescribed by the Exchange.

CHAPTER III.
SECURITIES, ETC. CLEARING-BROKERING CONTRACTS

Article 15-12.

Underlying Contracts of Securities, etc. Clearing-Brokering
Contracts

15-12.1
The underlying contracts of Securities, etc. Clearing-Brokering Contract
to be conducted by a Designated Clearing Member shall be those set forth in Article 2
hereof.
15-12.2
The Three-month Euroyen futures executed by the exercise of rights of
the Three-month Euroyen futures option contract or the Three-month TONA futures
executed by the exercise of rights of the Three-month TONA futures option contract shallbe deemed as the transaction executed by Securities, etc. Clearing-Brokering Contracts
and the provisions of these regulations shall be applied thereto.

Article 16.

Clearing Agreement

16.1
Each Non-Clearing Member acting in such capability in an Interest Rate Futurescontract shall enter into a Clearing Agreement in the form designated by the Exchange
setting forth the matters listed below with an Interest Rate Futures Clearing Member
eligible for Securities, etc. Clearing-Brokering Contracts who possesses all trading
memberships of the same types as those the Non-Clearing Member has (excluding the FX
Daily Futures Trading Membership, the Equity Index Daily Futures Trading Membership,74

Clearing Regulations

FX Broker Trading Membership and LP Trading Membership). Provided, however, each
Japanese Yen Interest Rate Remote Trading Member shall enter into a Clearing Agreementwith an Interest Rate Futures Clearing Member eligible for Securities, etc. ClearingBrokering Contracts holding a Japanese Yen Interest Rate Trading Membership.
(1)

In the case where such Non-Clearing Member intends to execute an Interest
Rate Futures transaction on behalf of its Designated Clearing Member, tothe effect that the Non-Clearing Member submitted, and the Designated
Clearing Member accepted, the Securities, etc. Clearing-Brokering
Contract; and(2)

Any other matters prescribed by the Exchange.

16.2
Each Non-Clearing Member acting in such capability in an FX Daily Futurescontract shall enter into a Clearing Agreement in the form designated by the Exchange
setting forth the matters listed below with a Daily Futures Clearing Member.
(1)

In the case where such Non-Clearing Member intends to execute an FX
Daily Futures transaction on behalf of its Designated Clearing Member, tothe effect that the Non-Clearing Member submitted, and the Designated
Clearing Member accepted, the Securities, etc. Clearing-Brokering
Contract; and(2)

Any other matters prescribed by the Exchange.

16.3
Each Non-Clearing Member acting in such capability in an Equity Index Daily
Futures contract shall enter into a Clearing Agreement in the form designated by the
Exchange setting forth the matters listed below with a Daily Futures Clearing Member.
(1)

In the case where such Non-Clearing Member intends to execute an Equity
Index Daily Futures transaction on behalf of its Designated Clearing
Member, to the effect that the Non-Clearing Member submitted, and the
Designated Clearing Member accepted, the Securities, etc. ClearingBrokering Contract; and(2)

Any other matters prescribed by the Exchange.
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16.4
When a bid or offer submitted by a Non-Clearing Member satisfies the conditions
specified in the Trading Regulations, the FX Special Regulations and the Equity Index
Special Provisions, a market derivatives contract shall be deemed to be executed on the
Exchange Market for the said Non-Clearing Member’s account and in the name of the
Designated Clearing Member, in which case the Designated Clearing Member shallacquire and assume the rights and obligations arising from the said market derivatives
contract.
16.5

A Designated Clearing Member shall acquire and assume the rights andobligations arising from a market derivatives contract and an L-T Link Position whichhave been caused to arise by a Non-Clearing Member as a result of give-up, as such termis defined in Article 20-10 of the Trading Regulations, in the name of the Designated
Clearing Member.
16.6
When a Clearing Member enters into a Clearing Agreement, the Clearing Member
shall notify the Exchange to that effect in accordance with the requirements prescribed by
the Exchange.
16.7
Termination of a Clearing Agreement shall not come into effect without the
Exchange’s approval, unless otherwise prescribed by the Exchange.

Article 17.
Member

Separate Accounting for Clearing by Designated Clearing

17.1
A Designated Clearing Member acting in such capability in Interest Rate Futurescontracts shall establish separate accounts for the Interest Rate Futures contracts executedin its own name at the bid or offer submitted by the respective Non-Clearing Members andfor the Interest Rate Futures contracts executed in its own name at the bid or offer
submitted by it.
17.2
A Designated Clearing Member acting in such capability in Interest Rate Futurescontracts shall establish separate accounts for the L-T Link Positions arising for theaccount of the respective Non-Clearing Members and for the L-T Link Positions arising
for the account of the Designated Clearing Member itself with respect to all the L-T Link
Positions that arise in its own name.
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17.3
A Designated Clearing Member acting in such capability in FX Daily Futurescontracts or Equity Index Daily Futures contracts shall establish separate accounts for
those contracts executed in its own name at the bid or offer submitted by the respective
Non-Clearing Members and for those contracts executed in its own name at the bid or offer
submitted by it.

Article 18.
Market Derivatives Contracts in case of Change in Designated
Clearing Member
If a Designated Clearing Member is replaced, the Exchange shall cause thesuccessor Designated Clearing Member to acquire and assume all the rights andobligations held and assumed by the former Designated Clearing Member under all theunsettled market derivatives contracts executed on the Exchange Market at the bid or offer
submitted by the former Designated Clearing Member, with effect as of the time and datedesignated by the Exchange.

Article 19.
Agreement

Application for Approval of Termination of Clearing

19.1
If a Clearing Member terminates a Clearing Agreement, the Clearing Member
shall apply for approval thereof in accordance with the requirements prescribed by the
Exchange.
19.2
If the Exchange receives an application for approval of the termination of aClearing Agreement, the Exchange shall approve such termination only when it deems it
appropriate and necessary in light of operation of the Exchange Market.

Article 20.

Market Derivatives Contracts for Non-Clearing Member’s
Account upon Termination of Clearing Agreement

20.1
Upon the approval of termination of a Clearing Agreement set forth in Article
19.2 above, the Exchange shall suspend assumption of obligations arising from market
derivatives transactions on the Exchange Market executed at the bid or offer submitted bya Non-Clearing Member who is a party to such terminated Clearing Agreement and in the77

Clearing Regulations

name of the Clearing Member who is the other party thereto.
20.2
If the Exchange suspends assumption of obligations arising from market
derivatives transactions in accordance with Article 20.1 above, the Exchange may cause
to be transferred to another Clearing Member or otherwise liquidated in the manner that
the Exchange deems necessary, any of the unsettled market derivatives contracts executedon the Exchange Market at the bid or offer submitted by the Non-Clearing Member in thename of the concerned Clearing Member.
20.3
Notwithstanding the provisions of Article 20.1 above, to the extent necessary for
the Non-Clearing Member to proceed with the transfer or liquidation set forth in Article
20.2 above, the Exchange may assume obligations arising from market derivatives
transactions executed on the Exchange Market at the bid or offer submitted by the NonClearing Member in the name of the Clearing Member.
20.4
If the Exchange suspends assumption of obligations arising from market
derivatives transactions in accordance with Article 20.1 above, the Exchange may cause
to be transferred to another Clearing Member or otherwise liquidated in the manner that
the Exchange deems necessary, any of the unsettled L-T Link Positions that have arisen
for the account of the Non-Clearing Member.
20.5
The provisions of Article 20.3 above shall apply mutatis mutandis to the transfer
or liquidation set forth in Article 20.4 above.

CHAPTER IV.
ASSUMPTION OF OBLIGATIONS

Section 1.

Clearing of Market Derivatives Contracts

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Article 21.

Clearing of Market Derivatives Contracts

When a market derivatives contract is executed on the Exchange Market, theExchange shall, for the purpose of facilitating market derivatives transactions, as a
substitute for the Clearing Member, assume the obligations of a Clearing Member arisingunder the said contract and obtain newly created rights corresponding to the assumed
obligations or shall succeed to the Clearing Member’s contractual position as a grantor ofan option created by the said contract and stand in the place of a holder of a newly created
option corresponding to the aforesaid option, and shall clear such market derivatives
contract with the relevant Clearing Member, in accordance with Article 22, 24, 25 or 26
hereof.

Article 22.

Exchange’s Assumption of Obligations arising from Market
Derivatives Contract

The Exchange shall assume obligations arising from market derivatives contracts
with Clearing Members in accordance with the following provisions:(1)

When a market derivatives contract has been executed in accordance with
the Trading Regulations, FX Special Provisions, the Equity Index Special
Provisions and the FX Clearing Special Provisions, the Exchange shallassume all the obligations that the Clearing Member acting as the seller
would assume vis-à-vis the other Clearing Member acting as the buyer
under such market derivatives contract and release the Clearing Member
acting as the seller from such obligations, whereas the Clearing Member
acting as the seller shall newly assume obligations vis-à-vis the Exchange
under the same terms and conditions as those of the obligations that havebeen assumed by the Exchange; and the Exchange shall assume all theobligations that the Clearing Member acting as the buyer would assumevis-à-vis the Clearing Member acting as the seller under such market
derivatives contract and release the Clearing Member acting as the buyer
from such obligations, whereas the Clearing Member acting as the buyer
shall newly assume obligations vis-à-vis the Exchange under the sameterms and conditions as those of the obligations that have been assumed
by the Exchange; and79

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(2)When a Three-month Euroyen futures option contract or a Three-month
TONA futures option contract has been executed under the Special
Provisions for Trading Regulations and Brokering Terms for Options andthe Brokering Terms (hereinafter called “Special Provisions for
Options”), the Exchange shall be deemed to have succeeded to theposition as the grantor of an option on Three-month Euroyen futures oran option on Three-month TONA futures that the Clearing Member
acting as the seller would assume vis-à-vis the other Clearing Member
acting as the buyer under such Three-month Euroyen futures option
contract or Three-month TONA futures option contract (except for theclaim for the option premium relating thereto), whereas the Clearing
Member acting as the seller shall be deemed to have become the grantorof a newly created option on Three-month Euroyen futures or the grantorof a newly created option on Three-month TONA futures to the
Exchange, under the same terms and conditions as those of the aforesaid
option with respect to which the Exchange has succeeded to the position
as the grantor as aforesaid; and the Exchange shall assume the obligationsof the Clearing Member acting as the buyer to pay the related option
premium that the Clearing Member acting as the buyer would assumevis-à-vis the Clearing Member acting as the seller and release theClearing Member acting as the buyer from such obligations, whereas the
Clearing Member acting as the buyer shall be deemed to have newly
assumed an obligation to the Exchange under the same terms andconditions as those of the aforesaid obligations that has been assumed by
the Exchange.

Section 2.

Clearing of L-T Link Positions

Article 23.

Clearing of L-T Link Positions

The Exchange shall clear L-T Link Positions between itself and the Clearing
Member who has caused them to arise in its own name on the Exchange Market.

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Article 24.

Assumption of Obligations arising from L-T Link Positions
between Exchange and Clearing Member

24.1
When an L-T Link Position arises between the Exchange and a Clearing Member
pursuant to Article 21.2 of the Trading Regulations, the Exchange shall newly acquire andassume vis-à-vis the Clearing Member rights and obligations under the same terms andconditions as those having been held and assumed, with respect to the overseas position
set forth in Article 21.1 of the Trading Regulations, by a Linked Overseas Clearing House
defined in Article 2(4) of the Trading Regulations, vis-à-vis a member (including the head
office or a branch of the Clearing Member located overseas; the same shall apply
hereinbelow in this Article 24.1) of a Linked Overseas Exchange which is a party to theMember Link Agreement specified in Article 2(9)(a) of the Trading Regulations, whereas
the Clearing Member shall acquire and assume vis-à-vis the Exchange rights andobligations under the same terms and conditions as those having been held and assumed
by the said member of the said Linked Overseas Exchange vis-à-vis the said Linked
Overseas Clearing House with respect to the said overseas position, such that the Exchange
shall clear the L-T Link Position between itself and the Clearing Member.
24.2
When an L-T Link Position arises between the Exchange and a Clearing Member
pursuant to Article 21.3 of the Trading Regulations, the Exchange shall newly acquire andassume vis-à-vis such Clearing Member rights and obligations under the same terms andconditions as those having been held and assumed, with respect to the overseas position
set forth in Article 21.1 of the Trading Regulations, by a Linked Overseas Clearing Housevis-à-vis a member (including the head office or a branch of the Clearing Member locatedoverseas; the same shall apply hereinbelow in this Article 24.2) of a Linked Overseas
Exchange which is a party to the Member Link Agreement specified in Article 2(9)(b) of
the Trading Regulations, whereas the Clearing Member shall acquire and assume vis-à-vis
the Exchange rights and obligations under the same terms and conditions as those having
been held and assumed by the said member of the said Linked Overseas Exchange vis-àvis the said Linked Overseas Clearing House with respect to the said overseas position,such that the Exchange shall clear the L-T Link Position between itself and the Clearing
Member.

Section 3.

Clearing of Market Derivatives Contracts and L-T Link Positions for
Give-up81

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Article 24-2.

Clearing of Market Derivatives Contracts and L-T Link
Positions for Give-up

The Exchange shall clear a market derivatives contract or an L-T Link Position
created as a result of give-up with the Clearing Member who has caused such contract orposition to arise in its own name.

Article 25.

Discharge and Creation of Market Derivatives Contract,
Discharge of Exchange’s and Executing Member’s Rights andObligations, and Acquisition and Assumption of Rights andObligations by Exchange and Carrying Member, in Relation toGive-up

When a market derivatives contract or an L-T Link Position is discharged or
created as a result of give-up set forth in Article 20-10 of the Trading Regulations, therights and obligations remaining between the Exchange and the Executing Member as
defined in Article 2(33) of the Trading Regulations (or its Designated Clearing Member, if
the Executing Member is a Non-Clearing Member, and this shall apply to the term
“Executing Member” hereafter in this Article 25) with respect to the discharged market
derivatives contract or L-T Link Position shall be discharged, and the Exchange shall
newly acquire and assume rights and obligations vis-à-vis the Carrying Member as definedin Article 2(34) of the Trading Regulations (or its Designated Clearing Member, if theCarrying Member is a Non-Clearing Member, and this shall apply to the term “Carrying
Member” hereafter in this Article 25, except for reference to “for the account of such
Carrying Member” and equivalent expressions), under the same terms and conditions as
those of the discharged rights and obligations that have been held and assumed by the
Exchange vis-à-vis the Executing Member with respect to the discharged market
derivatives contract or L-T Link Position, whereas the Carrying Member shall newly
acquire and assume rights and obligations vis-à-vis the Exchange under the same terms
and conditions as those having been held and assumed by the Executing Member vis-à-vis
the Exchange with respect to the discharged market derivatives contract or L-T Link
Position, for the account of such Carrying Member, such that the Exchange shall clear themarket derivatives contract or the L-T Link Position between itself and the Clearing
Member.
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Article 26.

Discharge and Creation of Option Contracts and Discharge andArising, etc. of Contractual Positions by Exchange, Executing
Member and Carrying Member in Relation to Give-up

When a market derivatives contract or an L-T Link Position is discharged or
created as a result of give-up set forth in Article 15-2 of the Special Provisions for Options,
the Exchange shall assume the obligation arising from such contract or Position in themanner set forth below:(1)

If a sale contact for Three-month Euroyen futures option contract orThree-month TONA futures option contract is discharged as a result of
give-up, the position as grantor of such option held by the Executing
Member (or its Designated Clearing Member, if the Executing Member
is a Non-Clearing Member, and this interpretation applies to the term
“Executing Member” hereafter in this Article 26) vis-à-vis the Exchangewith respect to the discharged contract shall be discharged, and theCarrying Member (or its Designated Clearing Member, if the Carrying
Member is a Non-Clearing Member, and this interpretation applies to theterm “Carrying Member” hereafter in this Article 26, except for reference
to “for the account of such Carrying Member” and equivalent
expressions) shall newly become the grantor of an option on Three-month
Euroyen futures or an option on Three-month TONA futures under thesame terms and conditions as those of the discharged contract, vis-à-vis
the Exchange for the account of such Carrying Member. In such case,the obligations to pay the option premium that has been held and assumed
by the Exchange to the Executing Member with respect to the discharged
sale contract shall be discharged, and the Exchange shall newly assume
the obligation under the same terms and conditions as those of the said
discharged obligation vis-à-vis the Carrying Member; and(2)

If a purchase contact for Three-month Euroyen futures option contract orThree-month TONA futures option contract is discharged as a result of
give-up, the position as grantor of such option held by the Exchange visà-vis the Executing Member with respect to the discharged contract shallbe discharged, and the Exchange shall newly become the grantor of an
83

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option on Three-month Euroyen futures or an option on Three-month
TONA futures vis-à-vis the Carrying Member, under the same terms andconditions as those of the discharged contract. In such case, theobligation to pay the option premium that has been held and assumed by
the Executing Member to the Exchange with respect to the discharged
purchase contract shall be discharged, and the Carrying Member shall
newly assume the obligation under the same terms and conditions as
those of the said discharged obligation vis-à-vis the Exchange for theaccount of such Carrying Member.

CHAPTER V.
DUTY TO PERFORM OBLIGATIONS ARISING FROM MARKETDERIVATIVES CONTRACTS

Article 27.

Liability of ExchangeWith respect to any market derivatives contract executed on the Exchange Market,
the Exchange shall be liable only to Clearing Members for fulfilling the obligations
thereunder.

Article 28.

Exchange’s Liability for Link

28.1
With respect to any L-T Link Position that has arisen, the Exchange shall be liable
for fulfilling obligations therefor only to the Clearing Members.
28.2
The Exchange shall be liable for fulfilling its obligations for the amount of money
separately prescribed by the Exchange to the Linked Overseas Clearing House.

Article 29.

Treatment of Market Derivatives Contracts, etc. created as a
Result of Give-up
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29.1
A market derivatives contract created as a result of give-up shall be regarded as amarket derivatives contract executed on the Exchange Market.
29.2
An L-T Link Position created as a result of give-up shall be regarded as an L-T
Link Position arising on the Exchange Market.

CHAPTER VI.
EXCHANGE MARGIN AND UNSETTLED MARKET DERIVATIVESCONTRACTS, ETC.

Article 30.

Exchange Margin and Unsettled Market Derivatives Contracts,
etc.

Matters pertaining to the margins, etc. arising under the financial instruments
obligation assumption business operated by the Exchange in relation to Interest Rate
Futures contracts and L-T Link Positions shall be prescribed by the Regulations for Margin
and Unsettled Market Derivatives Contracts (hereinafter called the “Margin Regulations”),
whereas the ones in relation to FX Daily Futures contracts shall be prescribed by theRegulations for Margin and Unsettled Contracts for FX Daily Futures Transactions(hereinafter called the “FX Margin Regulations”), the ones in relation to Equity Index
Daily Futures contracts shall be prescribed by the Regulations for Margin and Unsettled
Contracts for Equity Index Daily Futures Transactions (hereinafter called the “Equity
Index Margin Regulations”), and the ones in relation to FX Clearing Futures contracts
shall be prescribed by the Regulations for Margin and Unsettled Contracts for FX Clearing
Futures Transactions (hereinafter called the “FX Clearing Margin Regulations”),
respectively.

CHAPTER VII.
85

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CLEARING DEPOSIT

Article 31.

Delivery of Clearing Deposit

31.1
A Clearing Member shall deposit a clearing deposit with the Exchange inaccordance with the requirements prescribed by the Exchange. In such case, the Clearing
Member shall deposit the clearing deposit in classification by types of the clearing deposit
classified by type of the clearing membership as specified below:(1)

A clearing deposit to be deposited by an Interest Rate Futures Clearing
Member (hereinafter called “Interest Rate Futures Clearing Deposit”);(2)

A clearing deposit to be deposited by a Daily Futures Clearing Member(hereinafter called “Daily Futures Clearing Deposit”)(3)

A clearing deposit to be deposited by an FX Clearing Member(hereinafter called “FX Clearing Futures Clearing Deposit”)

31.2
The amount of the Interest Rate Futures Clearing Deposit to be deposited andmaintained by an Interest Rate Futures Clearing Member shall be calculated as separately
prescribed by the Exchange; provided, however, if the amount so calculated is below Fifty
Million (50,000,000) yen, the amount of the Interest Rate Futures Clearing Deposit to bedeposited and maintained by an Interest Rate Futures Clearing Member shall be Fifty
Million (50,000,000) yen.
31.3
The amount of the Daily Futures Clearing Deposit to be deposited and maintainedby a Daily Futures Clearing Member shall be the amount calculated in a manner separately
prescribed by the Exchange.
31.4
The amount of the FX Clearing Futures Clearing Deposit to be deposited andmaintained by an FX Clearing Futures Clearing Member shall be calculated as separately
prescribed by the Exchange.
31.5

A Clearing Member may deposit clearing deposits in the form of currency ofJapanese Yen or negotiable securities in accordance with the requirements prescribed by
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the Exchange.
31.6
A Clearing Member may not assign or agree to assign in the future, or provide as
security, the claim for refund of the clearing deposits placed by itself to or in favor of athird party.

Article 32.

Amount of Clearing Deposit payable upon Admission to
Clearing Membership

32.1
The amount of the Interest Rate Futures Clearing Deposit to be deposited by aperson admitted to Interest Rate Futures Clearing Membership pursuant to the provisionof Article 4.4 hereof shall be the amount deemed appropriate by the Exchange based on
Fifty Million Japanese Yen (¥50,000,000) as a benchmark.
32.2
The amount of the Daily Futures Clearing Deposit to be deposited by a person
admitted to Daily Futures Clearing Membership pursuant to the provision of Article 4.4
hereof shall be the amount deemed appropriate by the Exchange based on Five Million
Japanese Yen (¥5,000,000) as a benchmark.
32.3
The amount of the FX Clearing Futures Clearing Deposit to be deposited by aperson admitted to FX Clearing Futures Clearing Membership pursuant to the provisionof Article 4.4 hereof shall be the amount deemed appropriate by the Exchange based on
Fifty Million Japanese Yen (¥5,000,000) as a benchmark.

Article 33.

Change of Amount of Clearing Deposit

33.1
In order to secure appropriate risk management at the Exchange Market or asotherwise deemed necessary by the Exchange, the Exchange may change the amount of
the clearing deposit set forth in Articles 31.2 through 31.4 hereof on a provisional basis.
33.2
When two (2) or more Clearing Members merge or consolidate between or among
themselves or it is otherwise deemed necessary by the Exchange, the Exchange may
change the amount of the clearing deposit to be placed and maintained by certain Clearing
Members.
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Article 34.

(Deleted)

Article 35.

Replenishment of Clearing Deposits

If the Exchange has appropriated the clearing deposits for compensation of its
losses in accordance with Articles 40-2 and 41 hereof and the remaining balance of any
type of clearing deposit attributable to a Clearing Member falls below the amount that the
Clearing Member is required to maintain with respect to the corresponding type of clearing
membership, the Clearing Member shall deposit an additional clearing deposit of that typein the amount of such difference by the date that the Exchange will determine by the
resolution of the board of directors.

Article 36.
36.1

Refund of Clearing Deposits

If the amount of any given type of clearing deposit deposited by a Clearing

Member exceeds the requisite amount, the Clearing Member is entitled to request the
Exchange to refund an amount in excess of that type of clearing deposit in accordance withthe requirements prescribed by the Exchange.
36.2
In the event that a refund claim is made for any given type of clearing deposit set
forth in Article 36.1 above, the Exchange may suspend refund of an amount in excess ofthe type of clearing deposit in question, when the Exchange deems it specificallynecessary.

Article 37.

Refund of Clearing Deposits upon Deregistration of Clearing
Membership37.1
In the event that a Clearing Member deregisters any given type of clearing
membership, the Exchange shall refund the clearing deposit deposited by the Clearing
Member for the corresponding type of clearing membership on or after the date on which
the deregistration takes effect.

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37.2
In the case of Article 37.1 above, if there is any obligations owed to the Exchange
relating to the underlying market derivatives transactions of financial instruments
obligation assumption business operated by the Exchange or any other obligations arisingunder the rules set forth by the Exchange including these Regulations, etc., the Exchange
may appropriate the clearing deposit deposited by the Clearing Member to such obligations
and refuse to refund the clearing deposit to the extent necessary.

Article 38.

Succession to Clearing Deposits upon Merger or Consolidation

In the case of a merger or consolidation of a Clearing Member, the surviving
corporation of the merger or the newly incorporated corporation as a result of theconsolidation shall succeed to the rights and obligations arising before such merger orconsolidation with respect to the clearing deposits of the Clearing Member.

Article 39.

Management and Investment of Clearing Deposits

39.1
The Exchange shall manage the clearing deposits separately from the Exchange’s
other assets by, including without limitation, maintaining separate accounts for the former
and the latter, and maintain accounting books in which the accounts are classified by thetype of Clearing Member and the type of the clearing deposit set forth in Article 31.1
hereof.
39.2
Where the Exchange receives the clearing deposits in cash, the Exchange shallinvest them in the following manner:

39.3

(1)

Holding of Japanese Government bonds, municipal bonds, bonds issued
by entities in accordance with special laws, or corporate bonds;(2)

Savings or deposits with financial institutions; or(3)

Money trust with banks engaged in trust business (only the money trustwith principal guarantee is allowed).

If the Exchange gains profits from the investments of the clearing deposits in themanner set forth in Article 39.2 above, the Exchange shall pay the profits, in accordance89

Clearing Regulations

with the conditions prescribed by the Exchange, to the Clearing Members who havedeposited such clearing deposits in cash.

CHAPTER VIII.
COMPENSATION FOR LOSSES FROMASSUMPTION OF OBLIGATIONSArticle 40.

Compensation for Losses from Default of Interest Rate Futures
Clearing Member

40.1
The Exchange may be compensated for losses incurred by it as a result of anInterest Rate Futures Clearing Member’s default in its obligations under its Interest Rate
Futures contracts executed or the L-T Link Positions arising and/or held on the Exchange
Market, from the following deposits which are deposited by the Interest Rate Futures
Clearing Member (hereinafter called “Defaulting Interest Rate Futures Clearing Member”)
in connection with the trading membership relating to the defaulted Interest Rate Futurescontract or the defaulted L-T Link Position or in connection with the clearing membership
relating to such trading membership:(1)

The Exchange Margin deposited with the Exchange by the Defaulting
Interest Rate Futures Clearing Member for the Interest Rate Futurescontracts for its house account;(2)

The market entry deposit deposited with the Exchange by the Defaulting
Interest Rate Futures Clearing Member in accordance with Article 12 of
the Trading Member Regulations (less the amount of the portion thereof
for which its customer has exercised the preferential rights);(3)

The clearing deposit deposited with the Exchange by the Defaulting
Interest Rate Futures Clearing Member in accordance with Article 31.1
hereof;90

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(4)Other deposit deposited with the Exchange by the Defaulting Interest
Rate Futures Clearing Member; and(5)

The Exchange Margin deposited with the Exchange by the Defaulting
Interest Rate Futures Clearing Member with respect to the Interest Rate
Futures contracts for its customers’ accounts or with respect to theInterest Rate Futures contracts for which it has undertaken clearing, but
to the extent that the Defaulting Interest Rate Futures Clearing Member
is entitled to a refund claim for the said Exchange Margin.

40.2
If the losses incurred by the Exchange are not fully covered by the compensationin accordance with Article 40.1 above, the Exchange shall cover the uncompensatedportion of such losses from any of the deposits listed in each Item of Article 40.1 above
which is deposited by the defaulting Interest Rate Futures Clearing Member for any trading
membership other than the trading membership relating to the defaulted Interest Rate
Futures contract or the defaulted L-T Link Position, or for any clearing membership otherthan the clearing membership relating to such trading membership.
40.3
If the losses incurred by the Exchange are not fully covered by the compensationin accordance with Article 40.2 above in a Cooling Off Period for Interest Rate Futures(meaning the Cooling Off Period for Interest Rate Futures specified in Article 40-3.1), theExchange shall cover the uncompensated portion of such losses by appropriating thedefault compensation reserve for Interest Rate Futures.
40.4
If the losses incurred by the Exchange are not fully covered by the compensationsin accordance with Articles 40.1 through 40.3 above in a Cooling Off Period for Interest
Rate Futures, the Exchange shall cover the uncompensated portion of such losses byappropriating the Interest Rate Futures Clearing Deposits deposited with the Exchange by
all the other Interest Rate Futures Clearing Members who hold the clearing membership
relating to the defaulted Interest Rate Futures contract or the defaulted L-T Link Position
under such membership (hereinafter called the “Other Interest Rate Futures Clearing
Members” in this Chapter).
40.5
In order to compensate for the remaining losses in accordance with Article 40.4
above, the Exchange shall cause the Other Interest Rate Futures Clearing Members to bear
the remaining losses in proportion to the respective amounts of the Interest Rate Futures
Clearing Deposits to be deposited and maintained by the respective Other Interest Rate
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Futures Clearing Members (hereinafter called the “Initial Requirement Amount of Interest
Rate Futures Clearing Deposit”) on the business day immediately preceding the Initial
Loss-incurred Date for Interest Rate Futures (meaning the “Initial Loss-incurred Date forInterest Rate Futures” specified in Article 40-3.1). In such case, the respective amountsof losses that may be borne by the Other Interest Rate Futures Clearing Members shall be
up to the respective Initial Requirement Amount of Interest Rate Futures Clearing Deposit.
40.6
If the losses incurred by the Exchange are not fully compensated even after thecompensation in accordance with Article 40.4 above in a Cooling Off Period for Interest
Rate Futures, the Exchange shall cover the remaining losses by the money contributed by
the Other Interest Rate Futures Clearing Members (hereinafter called the “First Additional
Clearing Contribution for Interest Rate Futures” in Article 40).
40.7
The Exchange may be compensated for losses incurred by it as a result of failure
to receive any money receivable by it from any Linked Overseas Clearing House under
the Link Agreement, from the default compensation reserve for Interest Rate Futures
maintained by the Exchange.
40.8
If the losses incurred by the Exchange under Article 40.7 above are not fully
covered by the compensation in accordance with Article 40.7 above, the Exchange shallcover the uncompensated portion of such losses by appropriating the Interest Rate Futures
Clearing Deposits deposited with the Exchange by the Interest Rate Futures Clearing
Members.
40.9
Whenever the Exchange determines it necessary to do so in order to becompensated for the losses incurred by it under Articles 40.1 to 40.8 hereof, the Exchange
may realize eligible securities for clearing deposit in such manner, at such time, in suchplace, at such price and in such other details as the Exchange determines appropriate, andshall be compensated for the losses with the realization proceeds less the various costs andexpenses incurred for the realization.
40.10 In the case of a Position Liquidation Auction (including the “Position Liquidation
Auction for Non-Clearing Member” specified in Article 15-10.7; the same interpretation
shall equally apply in this Article) conducted by the Exchange, when the Exchange
implements to cover the losses pursuant to Article 40.4, the Exchange shall cover the losses
by appropriating the Interest Rate Futures Clearing Deposits deposited with the Exchangeby the Interest Rate Futures Clearing Members in the order of the Other Interest Rate
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Futures Clearing Members who have not tendered bids, the Other Interest Rate Futures
Clearing Members who have tendered bids but not won the bids and the Other Interest
Rate Futures Clearing Members who have won the bids in accordance with the criteria
separately prescribed by the Exchange.
.
40.11 Where the Exchange determines it difficult to calculate the amount of shortfall in
Article 40.4 for a considerable period of time, the Exchange may make compensation
provided for in Article 40.4 by deeming the estimated amount of shortfall calculated by
the Exchange tentatively as the amount of shortfall. In such case, if the amount ofshortfall in Article 40.4 is determined, the Exchange shall pay to or receive from the Other
Interest Rate Futures Clearing Members the amount equivalent to the difference between
the determined amount of shortfall and the amount tentatively calculated by the Exchange.
40.12 Where the Exchange has collected the unpaid receivables having caused the loss
compensated pursuant to Article 40.4 from the Defaulting Interest Rate Futures Clearing
Member, the Exchange shall refund the amount so collected to the Other Interest Rate
Futures Clearing Members on a prorated basis.
40.13 If the loss is covered by the First Additional Clearing Contribution for Interest
Rate Futures pursuant to Article 40.6, the Exchange shall have the Other Interest Rate
Futures Clearing Members bear the loss in proportion to the respective Initial Requirement
Amounts of Interest Rate Futures Clearing Deposit during the Cooling Off Period forInterest Rate Futures. In this case, the respective amounts of First Additional Clearing
Contribution for Interest Rate Futures to be borne by the Other Interest Rate Futures
Clearing Members shall be up to the respective Initial Requirement Amounts of Interest
Rate Futures Clearing Deposit.
40.14 If the losses incurred by the Exchange are not fully compensated even after thecompensation by the First Additional Clearing Contribution in accordance with Article
40.6 above in a Cooling Off Period for Interest Rate Futures, the Exchange shall cover theremaining losses by the money contributed by the Other Interest Rate Futures Clearing
Members (hereinafter called the “Second Additional Clearing Contribution for Interest
Rate Futures” in Article 40).
40.15 The Second Additional Clearing Contribution for Interest Rate Futures specified
in Article 40.14 shall be payable, in respect of the period from the Initial Loss-incurred
Date for Interest Rate Futures to the trading day on which the liquidation of the unsettled
contracts of the Defaulting Interest Rate Futures Clearing Member is completed(hereinafter called the “liquidation period”), by the Interest Rate Futures Clearing Member
for whom the total sum of the amounts determined by the Exchange for the Other Interest
Rate Futures Clearing Members as the amount equivalent to the cash settlement variation
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for liquidation for the respective trading days during the liquidation period (including theamount equivalent to the cash settlement variation for liquidation arising from the Position
Liquidation Auction and the variation at early termination; hereinafter called the “amountof cash settlement variation equivalent for liquidation”) to be received by such Interest
Rate Futures Clearing Member after deducting the total sum of such amount to be paid bysuch Interest Rate Futures Clearing Member is positive (hereinafter called the “Surviving
Clearing Member(s) making Second Additional Clearing Contribution for Interest Rate
Futures”).
40.16 If the loss is covered by the Second Additional Clearing Contribution for Interest
Rate Futures pursuant to Article 40.15, the Exchange shall have the Surviving Clearing
Members making Second Additional Clearing Contribution for Interest Rate Futures bear
the loss in proportion to the total sum of the respective amounts of cash settlement variationequivalent for liquidation specified in Article 40.15 to be received after deducting the totalsum of the amounts to be paid.
40.17 If any Other Interest Rate Futures Clearing Member fails to pay the variation at
early termination or fails to deposit the Special Purpose Cash Collateral for Interest Rate
Futures specified in Article 40-5.2, such failure shall be deemed as a default of such Other
Interest Rate Futures Clearing Member and the provisions of these Regulations shall apply.
40.18 The provisions of Article 40.11 and Article 40.12 shall apply mutatis mutandis tothe compensation for the losses pursuant to Article 40.6 and Article 40.14. In this case,the phrase “the Exchange may make compensation provided for in Article 40.4” in the first
sentence of Article 40.11 shall be replaced by the phrase “the Exchange may demand thedeposit of Special Purpose Cash Collateral for Interest Rate Futures on the day determinedby the Exchange.”
Article 40-2. Compensation for Losses from Default of Daily Futures Clearing
Member40-2.1 The Exchange may be compensated for losses incurred by it as a result of a Daily
Futures Clearing Member's default in its obligations under its FX Daily Futures contracts
or Equity Index Daily Futures contracts executed on the Exchange Market, from thefollowing deposits which are deposited by the Daily Futures Clearing Member inconnection with the trading membership relating to the defaulted FX Daily Futurescontract or Equity Index Daily Futures contracts or in connection with the clearing
membership relating to such trading membership:(1)

The Exchange Margin deposited with the Exchange by the defaulting
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Daily Futures Clearing Member for the FX Daily Futures contracts orEquity Index Daily Futures contracts for its house account;(2)

The market entry deposit deposited with the Exchange by the defaulting
Daily Futures Clearing Member in accordance with Article 12 of theTrading Member Regulations (less the amount of the portion thereof forwhich its customer has exercised the preferential rights);(3)

The clearing deposit deposited with the Exchange by the defaulting Daily
Futures Clearing Member in accordance with Article 31.1 hereof;(4)

Other deposit deposited with the Exchange by the defaulting Daily
Futures Clearing Member; and(5)

The Exchange Margin deposited with the Exchange by the defaulting
Daily Futures Clearing Member with respect to the FX Daily Futurescontracts or Equity Index Daily Futures contracts for its customers’
accounts, but to the extent that the defaulting Daily Futures Clearing
Member is entitled to a refund claim for the said Exchange Margin.

40-2.2 If the losses incurred by the Exchange are not fully covered by the compensationin accordance with Article 40-2.1 above, the Exchange shall cover the uncompensatedportion of such losses from any of the deposits listed in each Item of Article 40-2.1 above
which is deposited by the defaulting Daily Futures Clearing Member for any trading
membership other than the trading membership relating to the defaulted FX Daily Futurescontract or Equity Index Daily Futures contract, or for any clearing membership other thanthe Daily Futures Clearing Membership.
40-2.3 If the losses incurred by the Exchange are not fully covered by the compensationin accordance with Article 40-2.2 above, the Exchange shall cover the uncompensatedportion of such losses by appropriating the default compensation reserve for Daily Futurescontracts.
40-2.4 If the losses incurred by the Exchange are not fully covered by the compensationsin accordance with Articles 40-2.1 through 40-2.3 above, the Exchange shall cover theuncompensated portion of such losses by appropriating the Daily Futures Clearing
Deposits deposited with the Exchange by all the other Daily Futures Clearing Members
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(hereinafter referred to as “Other Daily Futures Clearing Member(s) in this Article) who
hold the clearing membership relating to the defaulted FX Daily Futures contract or Equity
Index Daily Futures contract under such membership.
40-2.5 In order to compensate for the remaining losses by Daily Futures Clearing
Deposits in accordance with Articles 40-2.4 above, the Exchange shall cause the Other
Daily Futures Clearing Members to bear the remaining losses in proportion to the sharesof the then requisite amounts of the Daily Futures Clearing Deposits to be deposited andmaintained by the said respective Daily Futures Clearing Members.
40-2.6 If the losses incurred by the Exchange are not fully compensated even after thecompensation in accordance with Article 40-2.4 above, the Exchange may cause the Other
Daily Futures Clearing Members to deposit the amount determined by the Exchange by
the resolution of the board of directors as an extraordinary clearing deposit, in addition to
the requisite amount of the clearing deposits to be deposited and maintained in accordancewith Articles 31.3 hereof, and the Exchange may cover the remaining losses by such
extraordinary clearing deposits.
40-2.7 Whenever the Exchange determines it necessary to do so in order to becompensated for the losses incurred by it under Articles 40-2.1 to 40-2.6 hereof, theExchange may realize eligible securities for clearing deposit in such manner, at such time,in such place, at such price and in such other details as the Exchange determines
appropriate, and shall be compensated for the losses with the realization proceeds less thevarious costs and expenses incurred for the realization.

Article 40-3.

Cooling Off Period for Interest Rate Futures

40-3.1 If the Exchange incurs any loss on the Interest Rate Futures contracts at the
Exchange Market due to default by an Interest Rate Futures Clearing Member, theExchange shall notify the Interest Rate Futures Clearing Members of the trading day on
which the obligations relating to such loss arises (hereinafter referred to as the “Initial
Loss-incurred Date for Interest Rate Futures”) and the period during which such loss is tobe disposed of (hereinafter referred to as the “Cooling Off Period for Interest Rate
Futures”).
40-3.2 The Cooling Off Period for Interest Rate Futures specified in Article 40-3.1 above
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shall be the period up to the trading day whose opening time of the day session falls on acalendar day which is the twenty- second (22nd) bank business day (meaning the Japanesebanking day; the same interpretation shall equally apply in this Article) from the Initial
Loss-incurred Date for Interest Rate Futures; provided, however, in the case where the
Exchange incurs any loss due to default by an Interest Rate Futures Clearing Member otherthan the Defaulting Interest Rate Futures Clearing Member, the Cooling Off Period forInterest Rate Futures shall be extended to the period up to the trading day whose opening
time of the day session falls on a calendar day which is the twenty-second (22nd) bankbusiness day from the trading day on which the obligations relating to such loss arises, andthereafter, if the Exchange incurs any loss due to default of any other Interest Rate Futures
Clearing Member during such extended period, the period shall be further extended in thesame manner.

Article 40-4. Special Provisions for Clearing Deposits during Cooling Off
Period for Interest Rate Futures
40-4.1 Notwithstanding the provisions of Article 31.2 hereof, the amount of Interest Rate
Futures Clearing Deposit to be deposited by an Interest Rate Futures Clearing Member
during a certain Cooling Off Period for Interest Rate Futures shall be the Initial
Requirement Amount of Interest Rate Futures Clearing Deposit during the Cooling Off
Period for Interest Rate Futures.
40-4.2 If the Interest Rate Futures Clearing Deposit of any Other Interest Rate Futures
Clearing Member falls short of the Initial Requirement Amount of Interest Rate Futures
Clearing Deposit due to appropriation of the Interest Rate Futures Clearing Deposit of such
Other Interest Rate Futures Clearing Member in whole or in part by the Exchange to becompensated for the losses in accordance with Article 40-4, the Other Interest Rate Futures
Clearing Member shall not be obliged to deposit the amount equivalent to such shortfall
during the Cooling Off Period for Interest Rate Futures.
40-4.3 The amount of Interest Rate Futures Clearing Deposit to be deposited by the Other
Interest Rate Futures Clearing Member (hereinafter referred to as the “Updated
Requirement Amount of Interest Rate Futures Clearing Deposit”) on the trading day
immediately following the last day of the Cooling Off Period for Interest Rate Futures
shall be the amount calculated in the manner separately prescribed by the Exchange, whichshall be applicable by the due date of the Interest Rate Futures Clearing Deposit to be
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deposited as calculated in accordance with Article 31.2 hereof which comes first after such
immediately following trading day (hereinafter referred to as the “Applicable Date for
Updated Requirement Amount of Interest Rate Futures” in this Article).
40-4.4 The Other Interest Rate Futures Clearing Member shall deposit the Interest Rate
Futures Clearing Deposit in the amount not less than the Updated Requirement Amount ofInterest Rate Futures Clearing Deposit with the Exchange by 11:00 a.m. of the Applicable
Date for Updated Requirement Amount of Interest Rate Futures.
40-4.5 If the deposited amount of the Special Purpose Cash Collateral for Interest Rate
Futures (meaning the Special Purpose Cash Collateral defined for Interest Rate Futures in
Article 40-5 hereof) of the Other Interest Rate Futures Clearing Member exceeds theaggregate sum of the First Additional Clearing Contribution for Interest Rate Futures andthe Second Additional Clearing Contribution for Interest Rate Futures to be contributed bysuch Other Interest Rate Futures Clearing Member in accordance with Article 40.6 andArticle 40.14 hereof with respect to the losses incurred by the Exchange during the Cooling
Off Period for Interest Rate Futures on the Applicable Date for Updated Requirement
Amount of Interest Rate Futures, the Exchange shall include the amount of such excess inthe amount of the Interest Rate Futures Clearing Deposit of such Other Interest Rate
Futures Clearing Member.

Article 40-5.

Special Purpose Cash Collateral for Interest Rate Futures

40-5.1 Other Interest Rate Futures Clearing Members shall deposit the Special Purpose
Cash Collateral for Interest Rate Futures defined in Article 40-5.2 with the Exchange
during a certain Cooling Off Period for Interest Rate Futures.
40-5.2 The Special Purpose Cash Collateral for Interest Rate Futures means theaggregate sum of the amount set forth in each Item below:(1)

Amount of Variation Equivalent for Interest Rate Futures which is theamount to be calculated by the Exchange based on the variation ofInterest Rate Futures Clearing Deposit to be deposited as calculated dailyon each trading day during the Cooling Off Period for Interest Rate
Futures; and98

Clearing Regulations

(2)Amount of Additional Contribution Equivalent for Interest Rate Futures
which is the amount equivalent to the First Additional Clearing
Contribution for Interest Rate Futures or the Second Additional Clearing
Contribution for Interest Rate Futures which may be borne by Other
Interest Rate Futures Clearing Members in accordance with Article 40-6
or Article 40-14 hereof.

40-5.3 The Special Purpose Cash Collateral for Interest Rate Futures shall be the clearing
deposit defined in Article 156-11 of the Act.

Article 40-6.

Deposit of Special Purpose Cash Collateral for Interest Rate
Futures40-6.1 The Exchange shall calculate the amount of Special Purpose Cash Collateral forInterest Rate Futures to be deposited by an Other Interest Rate Futures Clearing Member
for each trading day during a Cooling Off Period for Interest Rate Futures in the mannerseparately prescribed by the Exchange and notify the Other Interest Rate Futures Clearing
Member of such amount.
40-6.2 The Other Interest Rate Futures Clearing Member shall deposit, for each suchtrading day, the Special Purpose Cash Collateral for Interest Rate Futures to be deposited,
if any, or, if the amount already deposited with the Exchange as Special Purpose Cash
Collateral for Interest Rate Futures falls short of the amount of the Special Purpose Cash
Collateral for Interest Rate Futures to be deposited, the amount of such shortfall with the
Exchange in the currency of Japanese Yen as Special Purpose Cash Collateral for Interest
Rate Futures by 11:00 a.m. on a calendar day on which the opening time of the day sessionof the second trading day after the trading day on which the such obligation to deposit
arises.

Article 40-7.

Appropriation of Special Purpose Cash Collateral for
Fulfillment of Obligations Relating to Additional Clearing
Contribution for Interest Rate Futures

If the Exchange causes an Other Interest Rate Futures Clearing Member to bear
the First Additional Clearing Contribution for Interest Rate Futures or the Second99

Clearing Regulations

Additional Clearing Contribution for Interest Rate Futures in a certain Cooling Off Period
for Interest Rate Futures in accordance with Article 40.6 or 40.14 hereof, the Exchange
may appropriate the Special Purpose Cash Collateral for Interest Rate Futures depositedby such Other Interest Rate Futures Clearing Member for fulfillment of the obligations
relating to the First Additional Clearing Contribution for Interest Rate Futures or theSecond Additional Clearing Contribution for Interest Rate Futures owed by such Other
Interest Rate Futures Clearing Member to the Exchange.

Article 41.

Compensation for Other Losses from Assumption of
Obligations

41.1
If the Exchange incurs any losses arising in connection with assumption of
obligations in accordance with Article 21 hereof for any reason other than those set forthin Articles 40.1, 40-2.1 or 41-2.1 above, such losses shall be covered by: (i) the default
compensation reserve for Interest Rate Futures, if the losses are incurred in connection
with assumption of obligations related to an Interest Rate Futures contract; (ii) the
default compensation reserve for Daily Futures contracts, if the losses are incurred inconnection with assumption of obligations related to an FX Daily Futures contract or an
Equity Index Daily Futures contract; and (ⅲ) the default compensation reserve for FX
Clearing Futures contract, if the losses are incurred in connection with assumption of
obligations related to an FX Clearing Futures contract.
41.2
If the losses incurred by the Exchange under Article 41.1 above are not fully
covered by the compensation in accordance with Article 41.1 above, the Exchange may
cover the uncompensated portion of such losses by appropriating the clearing deposits
deposited with the Exchange by all the Clearing Members who hold the clearing
membership relating to the market derivatives contracts or L-T Link Positions inconnection with the assumption of obligations which caused the losses.
41.3
The provisions of Articles 40.4 through 40.6 and Articles 40.9 through 40.18,
Articles 40-2.4 through 40-2.7 and Articles 41-7 and 41-8 above shall apply mutatis
mutandis to the cases set forth in Article 41.2 above.
41.4
If the Exchange incurs any losses arising due to or in connection with assumptionof obligations in accordance with Article 24 hereof (except for losses set forth in Article
40.7 above), such losses shall be covered by the Exchange’s default compensation reserve
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for Interest Rate Futures.
41.5
The provisions of Articles 40.4 through 40.6 and Articles 40.8 through 40.18
above shall apply mutatis mutandis to the case where the losses incurred by the Exchange
are not fully compensated after the appropriation in accordance with Article 41.4 above.

CHAPTER VIII-II.
COMPENSATION FOR LOSSES FROM ASSUMPTION OF
OBLIGATIONS IN FX CLEARING FUTURES CONTRACTS

Section 1.

Establishment of Cooling Off Period

Article 41-2.

Cooling Off Period

41-2.1 If the Exchange incurs any loss on the FX Clearing Futures contracts at the
Exchange Market due to default by an FX Clearing Futures Clearing Member, theExchange shall notify the FX Clearing Futures Clearing Members of the trading day on
which the obligations relating to such loss arises (hereinafter referred to as the “Initial
Loss-incurred Date”) and the period during which such loss is to be disposed of(hereinafter referred to as the “Cooling Off Period”).
41-2.2 The Cooling Off Period specified in Article 41-2.1 above shall be the period up
to the trading day whose opening time of the Market Trading Period falls on a calendar
day which is the twenty- second (22nd) bank business day (meaning the Japanese banking
day; the same interpretation shall equally apply in this Article) from the Initial Lossincurred Date; provided, however, in the case where the Exchange incurs any loss due todefault by an FX Clearing Futures Clearing Member other than the FX Clearing Futures
Clearing Member who has defaulted its obligations as specified in Article 41-2.1(hereinafter referred to as the “Defaulting Clearing Member”), the Cooling Off Period shallbe extended to the period up to the trading day whose opening time of the Market Trading
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Clearing Regulations

Period falls on a calendar day which is the twenty-second (22nd) bank business day fromthe trading day on which the obligations relating to such loss arises, and thereafter, if the
Exchange incurs any loss due to default of any other FX Clearing Futures Clearing
Member during such extended period, the period shall be further extended in the samemanner.
41-2.3 In the event where the Exchange incurs a loss due to default by the Defaulting
Clearing Member in a certain Cooling Off Period, the Exchange shall identify the trading
day on which the obligations relating to such loss arises (hereinafter referred to as the“Loss-incurred Date”) and shall aggregate the amount of losses for each Loss-incurred
Date.

Section 2.

Compensation for Losses from Default of FX Clearing Futures
Clearing Member

Article 41-3.

Compensation for Losses by Deposit of Defaulting Clearing
Member41-3.1 If the Exchange incurs any loss on the FX Clearing Futures contracts at the
Exchange Market due to default by an FX Clearing Futures Clearing Member, theExchange shall notify the FX Clearing Futures Clearing Members of the trading day on
which the obligations relating to such loss arises (hereinafter referred to as the “Initial
Loss-incurred Date”) and the period during which such loss is to be disposed of(hereinafter referred to as the “Cooling Off Period”).
(1)

The Exchange Margin deposited with the Exchange by the Defaulting
Clearing Member for the FX Clearing Futures contracts for its houseaccount;(2)

The market entry deposit deposited with the Exchange by the Defaulting
Clearing Member in accordance with Article 12 of the Trading Member
Regulations;(3)

The clearing deposit deposited with the Exchange by the Defaulting
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Clearing Member in accordance with Article 31.1 hereof; and(4)Other deposit deposited with the Exchange by the Defaulting Clearing
Member.

41-3.2 If the losses incurred by the Exchange are not fully covered by the compensationin accordance with Article 41-3.1 above, the Exchange shall cover the uncompensatedportion of such losses from any of the deposits listed in each Item of Article 41-3.1 above
which is deposited by the Defaulting Clearing Member for any trading membership orclearing membership other than those relating to the defaulted FX Clearing Futurescontract.
41-3.3 Whenever the Exchange determines it necessary to do so in order to becompensated for the losses incurred by it under Articles 41-3.1 to 41-3.2 hereof, theExchange may realize eligible securities in such manner, at such time, in such place, atsuch price and in such other details as the Exchange determines appropriate, and shall becompensated for the losses with the realization proceeds less the various costs andexpenses incurred for the realization.

Article 41-4.

Compensation for Losses by Default Compensation Reserve

If the losses incurred by the Exchange in a certain Cooling Off Period are not fully
covered by the compensation in accordance with Article 41-3 above, the Exchange shallcover the uncompensated portion of such losses by appropriating the default compensation
reserve for FX Clearing Futures contracts.

Article 41-5.

Compensation for Losses by Clearing Deposits of Other
Clearing Members

41-5.1 If the losses incurred by the Exchange in a certain Cooling Off Period are not fully
covered by the compensation in accordance with Article 41-3 and Article 41-4 above, theExchange shall cover the uncompensated portion of such losses by appropriating the FX
Clearing Futures Clearing Deposits deposited by the FX Clearing Futures Clearing
Members other than the Defaulting Clearing Member (hereinafter referred to as the “OtherFX Clearing Futures Clearing Member(s)” in this Chapter) with the Exchange under the103

Clearing Regulations

FX Clearing Futures Clearing Membership.
41-5.2 In order to cover the remaining losses by the FX Clearing Futures Clearing
Deposits in accordance with Article 41-5.1 above, the Exchange shall cause the Other FX
Clearing Futures Clearing Members to bear the remaining losses in proportion to the thenrequisite amounts of the FX Clearing Futures Clearing Deposits to be deposited by therespective Other FX Clearing Futures Clearing Members on the business day immediately
preceding the Initial Loss-incurred Date (hereinafter referred to as the “Initial Requirement
Amount of Clearing Deposit”). In such case, the amount of the losses that may be borneby the Other FX Clearing Futures Clearing Members shall not exceed the Initial
Requirement Amount of Clearing Deposit.
41-5.3 Whenever the Exchange determines it necessary to do so in order to becompensated for the losses incurred by it under Articles 41-5.1 above, the Exchange may
realize eligible securities for clearing deposit in such manner, at such time, in such place,at such price and in such other details as the Exchange determines appropriate, and shallbe compensated for the losses with the realization proceeds less the various costs andexpenses incurred for the realization.

Article 41-6.
PeriodSpecial Provisions for Clearing Deposits during Cooling Off

41-6.1 Notwithstanding the provisions of Article 31.4 hereof, the amount of FX Clearing
Futures Clearing Deposit to be deposited by an FX Clearing Futures Clearing Member
during a certain Cooling Off Period shall be the Initial Requirement Amount of Clearing
Deposit during the Cooling Off Period.
41-6.2 If the FX Clearing Futures Clearing Deposit of any Other FX Clearing Futures
Clearing Member falls short of the Initial Requirement Amount of Clearing Deposit due
to appropriation of the FX Clearing Futures Clearing Deposit of such Other FX Clearing
Futures Clearing Member in whole or in part by the Exchange to be compensated for thelosses in accordance with Article 41-5.1, the Other FX Clearing Futures Clearing Member
shall not be obliged to deposit the amount equivalent to such shortfall during the Cooling
Off Period.
41-6.3 The amount of FX Clearing Futures Clearing Deposit to be deposited by the Other
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FX Clearing Futures Clearing Member (hereinafter referred to as the “Updated
Requirement Amount of Clearing Deposit”) on the trading day immediately following thelast day of the Cooling Off Period (if such trading day falls on a bank holiday, the trading
day immediately following such day which is a bank business day) shall be the amountcalculated in the manner separately prescribed by the Exchange, which shall be applicableby the due date of the FX Clearing Futures Clearing Deposit to be deposited as calculated
in accordance with Article 31.4 hereof which comes first after such immediately following
trading day (hereinafter referred to as the “Applicable Date for Updated Requirement
Amount” in this Article).
41-6.4 The Other FX Clearing Futures Clearing Member shall deposit the FX Clearing
Futures Clearing Deposit in the amount not less than the Updated Requirement Amount ofClearing Deposit with the Exchange by 11:00 a.m. of the Applicable Date for Updated
Requirement Amount.
41-6.5 If the deposited amount of the Special Purpose Cash Collateral (meaning theSpecial Purpose Cash Collateral defined in Article 41-9 hereof) of the Other FX Clearing
Futures Clearing Member exceeds the aggregate sum of the First Additional Clearing
Contribution for FX Clearing Futures and the Second Additional Clearing Contribution for
FX Clearing Futures to be contributed by such Other FX Clearing Futures Clearing
Member in accordance with Article 41-7 and Article 41-8 hereof with respect to the losses
incurred by the Exchange during the Cooling Off Period on the Applicable Date for
Updated Requirement Amount, the Exchange shall include the amount of such excess inthe amount of the FX Clearing Futures Clearing Deposit of such Other FX Clearing
Futures Clearing Member.

Article 41-7.

Compensation for Losses by First Additional Clearing
Contribution for FX Clearing Futures of Other Clearing
Members41-7.1 If the losses incurred by the Exchange in a certain Cooling Off Period are not fully
covered by the compensation in accordance with Article 41-5 above, the Exchange shallcover the uncompensated portion of such losses by appropriating the money to becontributed by the Other FX Clearing Futures Clearing Members (hereinafter referred toas the “First Additional Clearing Contribution for FX Clearing Futures”).
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41-7.2 In order to cover the remaining losses by the First Additional Clearing
Contribution for FX Clearing Futures in accordance with Article 41-7.1 above, theExchange shall cause the Other FX Clearing Futures Clearing Members to bear theremaining losses in proportion to the Initial Requirement Amount of Clearing Deposit
during the Cooling Off Period. In such case, the amount of the First Additional Clearing
Contribution for FX Clearing Futures to be borne by the Other FX Clearing Futures
Clearing Members shall not exceed the Initial Requirement Amount of Clearing Deposit.

Article 41-8.

Compensation for Losses by Second Additional Clearing
Contribution for FX Clearing Futures of Other Clearing
Members as Payees of Cash Settlement Variation

41-8.1 If the losses incurred by the Exchange in a certain Cooling Off Period are not fully
covered by the First Additional Clearing Contribution for FX Clearing Futures inaccordance with Article 41-7 above, the Exchange shall cover the uncompensated portionof such losses by appropriating the money to be contributed by the Other FX Clearing
Futures Clearing Members (hereinafter referred to as the “Second Additional Clearing
Contribution for FX Clearing Futures”).
41-8.2 The obligation to pay the Second Additional Clearing Contribution for FX
Clearing Futures defined in Article 41-8.1 above shall be borne by the Other FX Clearing
Futures Clearing Members for which a positive FX Clearing variation (meaning the FX
Clearing variation defined in Article 90-29 hereof) arises on each Loss-incurred Date(hereinafter referred to as the “Relevant Loss-incurred Date”) after the trading day on
which the accumulated amount of the losses to be compensated for under the provisionsof this Chapter exceeds the amount to be appropriated for compensation of the losses inaccordance with Article 41-3, Article 41-4, Article 41-5 and Article 41-7 (hereinafterreferred to as the “Surviving Clearing Members making Second Additional Clearing
Contribution for FX Clearing Futures”).
41-8.3 In order to cover the remaining losses by the Second Additional Clearing
Contribution for FX Clearing Futures in accordance with Article 41-8.1 above, theExchange shall cause the Surviving Clearing Members making Second Additional
Clearing Contribution for FX Clearing Futures to bear the remaining losses in proportion
to the amount of FX Clearing variation of the respective Surviving Clearing Members
making Second Additional Clearing Contribution for FX Clearing Futures (if there are two
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or more Relevant Loss-incurred Dates, the aggregate sum of the FX Clearing variation oneach Relevant Loss-incurred Date).

Section 3.

Special Collateral during Cooling Off Period

Article 41-9.

Special Purpose Cash Collateral

41-9.1 Other FX Clearing Futures Clearing Members shall deposit the Special Purpose
Cash Collateral defined in Article 41-9.2 with the Exchange during a certain Cooling Off
Period.
41-9.2 The Special Purpose Cash Collateral means the aggregate sum of the amount set
forth in each Item below:(1)

Amount of Variation Equivalent which is the amount to be calculated by
the Exchange based on the variation of FX Clearing Futures Clearing
Deposit to be deposited as calculated daily on each trading day during
the Cooling Off Period; and(2)

Amount of Additional Contribution Equivalent which is the amountequivalent to the First Additional Clearing Contribution for FX Clearing
Futures or the Second Additional Clearing Contribution for FX Clearing
Futures which may be borne by Other FX Clearing Futures Clearing
Members in accordance with Article 41-7 or Article 41-8 hereof.

41-9.3 The Special Purpose Cash Collateral shall be the clearing deposit defined in
Article 156-11 of the Act.

Article 41-10. Deposit of Special Purpose Cash Collateral
41-10.1 The Exchange shall calculate the amount of Special Purpose Cash Collateral to
be deposited by an Other FX Clearing Futures Clearing Member for each trading day
during a Cooling Off Period in the manner separately prescribed by the Exchange and107

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notify the Other FX Clearing Futures Clearing Member of such amount.
41-10.2 The Other FX Clearing Futures Clearing Member shall deposit, for each suchtrading day, the Special Purpose Cash Collateral to be deposited, if any, or, if the amountalready deposited with the Exchange as Special Purpose Cash Collateral falls short of theamount of the Special Purpose Cash Collateral to be deposited, the amount of such shortfallwith the Exchange in the currency of Japanese Yen as Special Purpose Cash Collateral by
11:00 a.m. on a calendar day on which the opening time of the Market Trading Period of
the second trading day after the trading day on which the such obligation to deposit arises(if the immediately following trading day or the second trading day after the trading day
on which the such obligation to deposit arises falls on a bank holiday, the trading day
immediately following such day which is a bank business day).

Article 41-11.

Appropriation of Special Purpose Cash Collateral for
Fulfillment of Obligations Relating to Additional Clearing
Contribution

If the Exchange causes an Other FX Clearing Futures Clearing Member to bear
the First Additional Clearing Contribution for FX Clearing Futures or the Second
Additional Clearing Contribution for FX Clearing Futures in a certain Cooling Off Period
in accordance with Article 41-7 or Article 41-8 hereof, the Exchange may appropriate theSpecial Purpose Cash Collateral deposited by such Other FX Clearing Futures Clearing
Member for fulfillment of the obligations relating to the First Additional Clearing
Contribution for FX Clearing Futures or the Second Additional Clearing Contribution for
FX Clearing Futures owed by such Other FX Clearing Futures Clearing Member to the
Exchange.

CHAPTER IX.
OFFSETTING TRANSACTIONSArticle 42.

Offsetting Transactions
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42.1
With respect to a short position or a long position relevant to the market
derivatives contracts executed in its own name at the bids or offers submitted by itself orthe L-T Link Positions (other than Clearing-undertaken Positions defined in Article 21.3of the Trading Regulations) arising in its own name, if a Clearing Member has executed
another purchase contract or caused an L-T Link Long Position to arise in order to closeout the first mentioned short position (except as referred to in Chapter XII and XⅢ-Ⅳ
hereof, such execution or arising being hereinafter called “Repurchase”) or has executed
another sale contract or caused an L-T Link Short Position to arise in order to close out thefirst mentioned long position (except as referred to in Chapter XII and XⅢ-Ⅳ hereof, suchexecution or arising being hereinafter called “Resale”), the Clearing Member shall notify
the Exchange of the classification of Resale or Repurchase and its volume.
42.2
Upon receipt of the notification of Resale or Repurchase set forth in Article 42.1
above, the Exchange shall decrease the concerned Clearing Member’s short position orlong position as settled by the volume of Resale or Repurchase advised in the said
notification.
42.3
Notwithstanding the provisions of Article 42.2 above, the Exchange may at its
discretion adjust the volume advised in the notification of Resale or Repurchase, if the
Exchange deems that the volume so advised may be inappropriate in the light of the criteria
separately prescribed by the Exchange, for example, the criteria whether the advised
volume exceeds the volume traded within the concerned trading day (meaning the trading
day defined in Article 2(24) of the Trading Regulations, which interpretation shall equally
apply hereinafter except otherwise provided).
42.4

Articles 42.1 through 42.3 above shall not apply to FX Daily Futures contracts,

Equity Index Daily Futures contracts and FX Clearing Futures contracts.

Article 43.

Offsetting Transaction by Non-Clearing Member

43.1
If a Non-Clearing Member makes a Repurchase or a Resale in order to close out
its Designated Clearing Member’s short position or long position arising from its
Securities, etc. Clearing-Brokering Contracts or its Clearing-undertaken Positions set forthin Article 17 of the Trading Regulations (except as referred to in Chapters XII, XIII and
XⅢ-Ⅳ hereof, hereinafter called the “Clearing-undertaken Short Position” and the109

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“Clearing-undertaken Long Position” respectively), the Non-Clearing Member on behalfof its Designated Clearing Member shall notify the Exchange of the classification of Resale
or Repurchase and its volume; provided, however, that the foregoing shall not preclude the
Designated Clearing Member from notifying the Exchange by itself.
43.2
Upon receipt of the notification of Resale or Repurchase set forth in Article 43.1
above, the Exchange shall decrease the concerned Designated Clearing Member’s
Clearing-undertaken Short Position or Clearing-undertaken Long Position as settled by thevolume of Repurchase or Resale advised in the said notification.
43.3
Notwithstanding the provisions of Article 43.2 above, the Exchange may at its
discretion adjust the volume advised in the notification of Resale or Repurchase, if the
Exchange deems that the volume so advised may be inappropriate in the light of the criteria
separately prescribed by the Exchange, for example, the criteria whether the advised
volume exceeds the volume traded within the concerned trading day.
43.4
If a Non-Clearing Member has made the notification of Resale or Repurchase set
forth in Article 43.1 hereof, it shall inform its Designated Clearing Member of such
notification without delay.
43.5
Articles 43.1 through 43.4 above shall not apply to FX Daily Futures contracts
and Equity Index Daily Futures contracts.

Article 44.

Particulars for Offsetting Transactions

In addition to the provisions of these Regulations, any matters necessary toprescribe in connection with the manner of filing of offsetting notifications, the period forfiling thereof and the procedures for correction of contents of the notification shall beseparately prescribed by the Exchange.

CHAPTER X.
MARK-TO-MARKET
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Article 45.

Daily Settlement Price

45.1
With respect to Interest Rate Futures contracts and L-T Link Positions, theExchange shall set the daily settlement figure or the daily settlement price (hereinaftercollectively called the “daily settlement price”) for each contract month after the close ofeach trading day’s day session. The daily settlement price so established shall be used as
the indicative figure or price to calculate the Exchange Margin, Non-Clearing Member
Margin and Customer Margin for the trading day, and shall be advised to the Clearing
Members and the Non-Clearing Members.
45.2
The daily settlement price set forth in Article 45.1 above shall be the volumeweighted average of the contract prices and traded volumes (excluding the contract prices
and the trading volumes of the Interest Rate Futures contracts executed by strategy trade,and this exclusion shall similarly apply to the term “contract price” referred to in Article
45.3 below) for the Interest Rate Futures contracts executed by auction method during a
specific time period separately designated by the Exchange (hereinafter called the“Indicative Period”), which period shall be before the close of the concerned trading day’s
day session; provided, however, that if the Exchange judges the daily settlement price so
calculated is inappropriate, the Exchange shall adopt another figure deemed appropriate
as the daily settlement price.
45.3
If there is no contract price during the Indicative Period for any contract month,
the daily settlement price therefor shall be separately determined by the Exchange.
45.4

Notwithstanding the provisions of Articles 45.2 and 45.3 above, with respect toany Interest Rate futures contract on its last trading day the daily settlement price shall be
the final settlement figure calculated in accordance with Articles 55, 70, 72, 74, 76 and 763 hereof.

Article 46.

46.1

Adjustment based on Difference between Contract Price or
Acceptance Figure and Daily Settlement Price

If there is a difference between the contract price of a newly executed Interest

Rate Futures contract and the daily settlement price thereof on the trading day on which
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such contract is executed, or if there is a difference between the Acceptance Figure of a
newly arising L-T Link Position and the daily settlement price thereof on the trading day
on which such L-T Link Position arises, the Clearing Member shall pay to or receive fromthe Exchange the amount calculated based on such difference, by the time separately
designated by the Exchange of the business day (but not a Japanese bank holiday; if suchbusiness day is a Japanese bank holiday, the business day immediately following such day
which is a Japanese banking day; the same business-day convention shall apply
hereinbelow except otherwise prescribed herein) immediately following the business dayon which the aforesaid trading day’s day session falls, through its account established at
one of the financial institutions designated by the Exchange in accordance with Article 98
hereof (hereinafter called the “Settlement Banks”).
46.2
If there is a difference between the contract price of the sale or purchase contract
relevant to a Securities, etc. Clearing-Brokering Contract newly executed for a NonClearing Member’s account and the daily settlement price thereof on the trading day on
which such Securities, etc. Clearing-Brokering Contract is executed, or if there is adifference between the daily settlement price of a Clearing-undertaken Position newly
arising for a Non-Clearing Member’s account and the Acceptance Figure thereof on the
trading day on which such Clearing-undertaken Position arises, the Non-Clearing Member
shall pay to or receive from its relevant Designated Clearing Member the amountcalculated based on such difference, by the time separately designated by the Exchange ofthe business day (or, with respect to a Non-Clearing Member who is also Japanese Yen
Interest Rate Remote Trading Member, the second business day in principle (but in eithercase not a Japanese bank holiday; if such business day is a Japanese bank holiday, thebusiness day immediately following such day which is a Japanese banking day; the samebusiness-day convention shall apply hereinbelow)) immediately following the business
day on which the relevant trading day’s day session falls.

Article 47.

Adjustment based on Difference between Daily Settlement
Prices47.1
With respect to a short position or long position relevant to the Interest Rate
Futures contract or the L-T Link Position executed or arising on or before the previous
trading day of any current trading day, if there is a difference between the current trading
day’s daily settlement price and the immediately preceding trading day’s daily settlement
price, the Clearing Member shall pay to or receive from the Exchange the amount
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calculated based on such difference, through its bank account established at one of theSettlement Banks, by the time separately designated by the Exchange of the business day
immediately following the business day on which the current trading day’s day session
falls.
47.2
With respect to a Clearing-undertaken Short Position or Clearing-undertaken
Long Position relevant to the Securities, etc. Clearing-Brokering Contract or the Clearingundertaken Position executed or arising on or before the previous trading day of any
current trading day, if there is a difference between the current trading day’s daily
settlement price and the immediately preceding trading day’s daily settlement price, a NonClearing Member shall pay to or receive from its relevant Designated Clearing Member
the amount calculated based on such difference, by the time separately designated by the
Exchange of the business day (or, with respect to a Non-Clearing Member who is also
Japanese Yen Interest Rate Remote Trading Member, the second business day in principle)
immediately following the business day on which the current trading day’s day session
falls.

Article 48.

Amounts Payable for Mark-to-Market

If any difference set forth in Article 46 or 47 above (hereinafter called the “markto-market amount”) arises, the amount calculated based on the mark-to-market amount per
trading unit for each financial index, etc. shall be calculated in accordance with thefollowing formulas:(1)

Three-month Euroyen futures:¥100,000,000 x [Absolute value of the mark-to-market amount] x 0.01 x
90/360(2)

Two-year ¥ SwapnoteTM, Five-year ¥ SwapnoteTM, Seven-year¥ SwapnoteTM and Ten-year ¥ SwapnoteTM:¥10,000,000 x [Absolute value of the mark-to-market amount] x 0.01

(3)

Three-month TONA futures
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Article 49.

Total Receivable Amount and Total Payable Amount49.1
If the mark-to-market amount for a sale contract, an L-T Link Short Position or ashort position is less than zero, or if the mark-to-market amount for a purchase contract,an L-T Link Long Position or a long position is greater than zero, the amount calculated
in accordance with Article 48 above shall be counted in the total amount receivable by theconcerned Clearing Member from the Exchange or receivable by the concerned NonClearing Member from its Designated Clearing Member (hereinafter called the “total
receivable amount”).
49.2
If the mark-to-market amount for a sale contract, an L-T Link Short Position or ashort position is greater than zero, or if the mark-to-market amount for a purchase contract,an L-T Link Long Position or a long position is less than zero, the amount calculated inaccordance with Article 48 above shall be counted in the total amount payable by theconcerned Clearing Member to the Exchange or payable by the concerned Non-Clearing
Member to its Designated Clearing Member (hereinafter called the “total payableamount”).
49.3
The amount to be paid or received between the Exchange and a Clearing Member
under Articles 46.1 and 47.1 hereof shall be the difference between the total receivableamount and the total payable amount attributable to such Clearing Member.
49.4
The amount to be paid or received between a Non-Clearing Member and its
relevant Designated Clearing Member under Articles 46.2 and 47.2 hereof shall be thedifference between the total receivable amount and the total payable amount attributableto such Non-Clearing Member.

Article 50.

Detailed Rules for Mark-to-Market

In addition to the provisions of these Regulations, any matters necessary for markto-market shall be prescribed by the Exchange.

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CHAPTER XI.
FINAL SETTLEMENT

Section 1.

General Provisions

Article 51.

Final Settlement

51.1
With respect to Interest Rate Futures contracts and L-T Link Positions, if a
Clearing Member holds a short position or a long position that has not been offset pursuant
to Article 42 hereof on or before its last trading day (hereinafter called the “final shortposition” and the “final long position” respectively), the Clearing Member shall settle thefinal short position or final long position for each financial index, etc. (such settlement
being hereinafter called “final settlement”), by paying or receiving in cash (hereinafter
called the “cash settlement”) the amount of money calculated based on the difference(hereinafter called the “final settlement difference”) between the figure calculated by the
Exchange in the manner set forth in Article 52 below (hereinafter called the “final
settlement figure”) and (i) the contract figure of any Interest Rate Futures contract executedon its last trading day, (ii) the Acceptance Figure of any L-T Link Position arising on its
last trading day, or (iii) the daily settlement figure on the trading day immediately
preceding the last trading day.
51.2
If a Non-Clearing Member holds a Clearing-undertaken Short Position or a
Clearing-undertaken Long Position that has not been offset pursuant to Article 43 hereof
on or before its last trading day (hereinafter called the “final Clearing-undertaken Short
Position” and “final Clearing-undertaken Long Position” respectively), the Non-Clearing
Member shall settle the final Clearing-undertaken Short Position or final Clearingundertaken Long Position by way of cash settlement.

Article 52.

Determination of Final Settlement Figure and Delivery

Settlement Price
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52.1
The Exchange shall determine the final settlement figure based on the prevailingmarket interest rate applicable to the relevant financial index on its last trading day.
52.2
Notwithstanding Article 52.1 above, the Exchange shall determine the final
settlement figure of Three-month TONA futures pursuant to Article 76.3.

Article 53.

Detailed Rules for Final Settlement

In addition to the provisions of these Regulations, any matters necessary toprescribe in connection with final settlement shall be prescribed by the Exchange.

Section 2.

Three-month Euroyen Futures

Article 54.

Application of Provisions for Mark-to-Market

The provisions of Articles 46 through 49 hereof shall apply mutatis mutandis tothe cash settlement of Three-month Euroyen futures. For this purpose, the phrase “thedaily settlement price thereof on the trading day on which such contract is executed”
referred to in Article 46 hereof shall be replaced with “the final settlement figure”, the term
“contract price” referred to in Article 46 hereof shall be replaced with “contract figure”,
the term “current trading day’s daily settlement price” referred to in Article 47 hereof shallbe replaced with “final settlement figure”, the term “the immediately preceding trading
day’s daily settlement price” referred to in Article 47 hereof shall be replaced with “theimmediately preceding trading day’s daily settlement figure”, and the term “mark-tomarket amount” referred to in Articles 48 and 49 hereof shall be replaced with “final
settlement difference”.

Article 55.
55.1

Determination of Final Settlement Figure

The Exchange shall adopt the three-month Euroyen TIBOR (Tokyo Interbank

Offered Rate) announced by General Incorporated Association JBA TIBOR
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Administration (hereinafter called “JBATA”) on the last trading day as the prevailingmarket interest rate at the close of the last trading day’s day session.
55.2
If JBATA corrects the interest rate of the three-month Euroyen TIBOR set forthin Article 55.1 above, the Exchange shall adopt such corrected interest rate as theprevailing market interest rate.
55.3
The Exchange shall determine the final settlement figure of Three-month Euroyen
futures as the figure equal to 100 minus the prevailing market interest rate set forth in
Article 55.1 hereof rounded off to the nearest third decimal point.
55.4
Notwithstanding the provisions of Articles 55.1 through 55.3 above, if JBATA
fails to announce the Euroyen TIBOR referred to in Article 55.1 above, the final settlement
figure for Three-month Euroyen futures shall be determined by the Exchange.

Articles 56 through 68 (Deleted)

Section 3.

Two-year ¥ Swapnote ™

Article 69.

Application of Provisions for Mark-to-Market

The provisions of Articles 46 through 49 hereof shall apply mutatis mutandis tothe cash settlement of Two-year ¥ SwapnoteTM. For this purpose, the phrase “the daily
settlement price thereof on the trading day on which such contract is executed” referred toin Article 46 hereof shall be replaced with “the final settlement figure”, the term “contract
price” referred to in Article 46 hereof shall be replaced with “contract figure”, the term
“current trading day’s daily settlement price” referred to in Article 47 hereof shall be
replaced with “final settlement figure”, the term “the immediately preceding trading day’s
daily settlement price” referred to in Article 47 hereof shall be replaced with “theimmediately preceding trading day’s daily settlement figure”, and the term “mark-tomarket amount” referred to in Articles 48 and 49 hereof shall be replaced with “final
settlement difference”.
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Article 70.

Determination of Final Settlement Figure

70.1
On the business day on which the last trading day’s day session falls, theExchange shall calculate the present value, as of its first trading day, of the sum of (i) thenotional coupons accruing semi-annually at the fixed interest rate on the notional principal
amount of ¥100 of the standardized Two-year Yen interest rate swap contract for the period
from its first trading day to its maturity date and (ii) the said notional principal amount asof the maturity date, in accordance with the formula separately prescribed by the
Exchange.
70.2
As the swap rate to be used for calculating the present value referred to in Article
70.1 above, the Exchange shall adopt one-year and two-year ISDA Benchmark JPY Swap
Rates as of 10:00 a.m. announced by ISDA on the last trading day; provided, however, thatthe swap rate applicable for the period from the staring date to any interest payment dateon the odd number of time under the standardized Two-year Yen interest rate swap contract
shall be determined in accordance with the manner separately prescribed by the Exchange.
70.3
If ISDA corrects either of the one-year and two-year ISDA Benchmark JPY Swap
Rates set forth in Article 70.2 above, the Exchange shall use such corrected ISDA
Benchmark JPY Swap Rate for calculating the present value set forth in Article 70.1
hereof.
70.4
The Exchange shall determine the final settlement figure for Two-year¥ SwapnoteTM as the figure equal to an integral multiple of 0.005 which is most proximate
to the present value set forth in Article 70.1 hereof (if two such figures are available, thehigher figure will be adopted).
70.5
Notwithstanding the provisions of Articles 70.1 through 70.4 above, if either of
the ISDA Benchmark JPY Swap Rates set forth in Article 70.2 hereof is not announced orcannot be obtained by the Exchange, the final settlement figure for Two-year¥ SwapnoteTM shall be determined by the Exchange.

Section 4.

Five-year ¥ SwapnoteTM
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Article 71.

Application of Provisions for Mark-to-Market

The provisions of Articles 46 through 49 hereof shall apply mutatis mutandis tothe cash settlement of Five-year ¥ SwapnoteTM. For this purpose, the phrase “the daily
settlement price thereof on the trading day on which such contract is executed” referred toin Article 46 hereof shall be replaced with “the final settlement figure”, the term “contract
price” referred to in Article 46 hereof shall be replaced with “contract figure”, the term
“current trading day’s daily settlement price” referred to in Article 47 hereof shall be
replaced with “final settlement figure”, the term “the immediately preceding trading day’s
daily settlement price” referred to in Article 47 hereof shall be replaced with “theimmediately preceding trading day’s daily settlement figure”, and the term “mark-tomarket amount” referred to in Articles 48 and 49 hereof shall be replaced with “final
settlement difference”.

Article 72.

Determination of Final Settlement Figure

72.1
On the business day on which the last trading day’s day session falls, theExchange shall calculate the present value, as of its first trading day, of the sum of (i) thenotional coupons accruing semi-annually at the fixed interest rate on the notional principal
amount of ¥100 of the standardized Five-year Yen interest rate swap contract for the period
from its first trading day to its maturity date and (ii) the said notional principal amount asof the maturity date, in accordance with the formula separately prescribed by the
Exchange.
72.2

As the swap rate to be used for calculating the present value referred to in Article

72.1 above, the Exchange shall adopt one-year through five-year ISDA Benchmark JPY
Swap Rates as of 10:00 a.m. announced by ISDA on the last trading day; provided,
however, that the swap rate applicable for the period from the staring date to any interest
payment date on the odd number of time under the standardized Five-year Yen interest rate
swap contract shall be determined in accordance with the manner separately prescribed by
the Exchange.
72.3
If ISDA corrects either one of the one-year through five-year ISDA Benchmark
JPY Swap Rates set forth in Article 72.2 above, the Exchange shall use such corrected
ISDA Benchmark JPY Swap Rate for calculating the present value set forth in Article 72.1
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hereof.
72.4
The Exchange shall determine the final settlement figure for Five-year¥ SwapnoteTM as the figure equal to the present value set forth in Article 72.1 hereof
rounded off to the nearest second decimal point.
72.5
Notwithstanding the provisions of Articles 72.1 through 72.4 above, if either of
the ISDA Benchmark JPY Swap Rates set forth in Article 72.2 hereof is not announced orcannot be obtained by the Exchange, the final settlement figure for Five-year¥ SwapnoteTM shall be determined by the Exchange.

Section 5.

Seven-year ¥ Swapnote™

Article 73.

Application of Provisions for Mark-to-Market

The provisions of Articles 46 through 49 hereof shall apply mutatis mutandis tothe cash settlement of Seven-year ¥ SwapnoteTM. For this purpose, the phrase “the daily
settlement price thereof on the trading day on which such contract is executed” referred toin Article 46 hereof shall be replaced with “the final settlement figure”, the term “contract
price” referred to in Article 46 hereof shall be replaced with “contract figure”, the term
“current trading day’s daily settlement price” referred to in Article 47 hereof shall be
replaced with “final settlement figure”, the term “the immediately preceding trading day’s
daily settlement price” referred to in Article 47 hereof shall be replaced with “theimmediately preceding trading day’s daily settlement figure”, and the term “mark-tomarket amount” referred to in Articles 48 and 49 hereof shall be replaced with “final
settlement difference”.

Article 74.

Determination of Final Settlement Figure74.1
On the business day on which the last trading day’s day session falls, theExchange shall calculate the present value, as of its first trading day, of the sum of (i) thenotional coupons accruing semi-annually at the fixed interest rate on the notional principal
amount of ¥100 of the standardized Seven-year Yen interest rate swap contract for the120

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period from its first trading day to its maturity date and (ii) the said notional principal
amount as of the maturity date, in accordance with the formula separately prescribed by
the Exchange.
74.2
As the swap rate to be used for calculating the present value referred to in Article
74.1 above, the Exchange shall adopt one-year through seven-year ISDA Benchmark JPY
Swap Rates as of 10:00 a.m. announced by ISDA on the last trading day; provided,
however, that the swap rate applicable for the period from the staring date to any interest
payment date on the odd number of time under the standardized Seven-year Yen interest
rate swap contract shall be determined in accordance with the manner separately
prescribed by the Exchange.
74.3
If ISDA corrects either one of the one-year through seven-year ISDA Benchmark
JPY Swap Rates set forth in Article 74.2 above, the Exchange shall use such corrected
ISDA Benchmark JPY Swap Rate for calculating the present value set forth in Article 74.1
hereof.
74.4

The Exchange shall determine the final settlement figure for Seven-year¥ SwapnoteTM as the figure equal to the present value set forth in Article 74.1 hereof
rounded off to the nearest second decimal point.
74.5
Notwithstanding the provisions of Articles 74.1 through 74.4 above, if either of
the ISDA Benchmark JPY Swap Rates set forth in Article 74.2 hereof is not announced orcannot be obtained by the Exchange, the final settlement figure for Seven-year¥ SwapnoteTM shall be determined by the Exchange.

Section 6.

Ten-year ¥ SwapnoteTM

Article 75.

Application of Provisions for Mark-to-Market

The provisions of Articles 46 through 49 hereof shall apply mutatis mutandis tothe cash settlement of Ten-year ¥ SwapnoteTM. For this purpose, the phrase “the daily
settlement price thereof on the trading day on which such contract is executed” referred toin Article 46 hereof shall be replaced with “the final settlement figure”, the term “contract
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price” referred to in Article 46 hereof shall be replaced with “contract figure”, the term
“current trading day’s daily settlement price” referred to in Article 47 hereof shall be
replaced with “final settlement figure”, the term “the immediately preceding trading day’s
daily settlement price” referred to in Article 47 hereof shall be replaced with “theimmediately preceding trading day’s daily settlement figure”, and the term “mark-tomarket amount” referred to in Articles 48 and 49 hereof shall be replaced with “final
settlement difference”.

Article 76.

Determination of Final Settlement Figure

76.1
On the business day on which the last trading day’s day session falls, theExchange shall calculate the present value, as of its first trading day, of the sum of (i) thenotional coupons accruing semi-annually at the fixed interest rate on the notional principal
amount of ¥100 of the standardized Ten-year Yen interest rate swap contract for the period
from its first trading day to its maturity date and (ii) the said notional principal amount asof the maturity date, in accordance with the formula separately prescribed by the
Exchange.
76.2
As the swap rate to be used for calculating the present value referred to in Article
76.1 above, the Exchange shall adopt one-year through ten-year ISDA Benchmark JPY
Swap Rates as of 10:00 a.m. announced by ISDA on the last trading day; provided,
however, that the swap rate applicable for the period from the staring date to any interest
payment date on the odd number of time under the standardized Ten-year Yen interest rate
swap contract shall be determined in accordance with the manner separately prescribed by
the Exchange.
76.3
If ISDA corrects either one of the one-year through ten-year ISDA Benchmark
JPY Swap Rates set forth in Article 76.2 above, the Exchange shall use such corrected
ISDA Benchmark JPY Swap Rate for calculating the present value set forth in Article 76.1
hereof.
76.4
The Exchange shall determine the final settlement figure for Ten-year¥ SwapnoteTM as the figure equal to the present value set forth in Article 76.1 hereof
rounded off to the nearest second decimal point.
76.5

Notwithstanding the provisions of Articles 76.1 through 76.4 above, if either of
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the ISDA Benchmark JPY Swap Rates set forth in Article 76.2 hereof is not announced orcannot be obtained by the Exchange, the final settlement figure for Ten-year ¥ SwapnoteTM
shall be determined by the Exchange.

Section 7.

Three-month TONA futures

Article 76-2.

Application of Provisions for Mark-to-Market

The provisions of Articles 46 through 49 hereof shall apply mutatis mutandis tothe cash settlement of Three-month TONA futures. For this purpose, the phrase “thedaily settlement price thereof on the trading day on which such contract is executed”
referred to in Article 46 hereof shall be replaced with “final settlement figure”, the term
“contract price” referred to in Article 46 hereof shall be replace with “contract figure”, theterm “current trading day’s daily settlement price” referred to in Article 47 hereof shall be
replaced with “final settlement figure”, the term “the immediately preceding trading day’s
daily settlement price” referred to in Article 47 hereof shall be replaced with “theimmediately preceding trading day’s daily settlement figure”, and the term “mark-tomarket amount” referred to in Articles 48 and 49 hereof shall be replaced with “final
settlement difference”.

Article 76-3.

Determination of Final Settlement Figure76-3.1 With respect to the average interest rates expressed in percentage among theuncollateralized overnight call rates (every business day) announced by the Bank of Japanas the final results (hereinafter called the “TONA Final result”), the Exchange shall deem,as an interest rate per annum, the figure of the daily compounded interest of each TONA
Final result during a Reference Quarter (meaning the Reference Quarter specified in
Article 2 (44) of the Trading Regulations; the same interpretation shall equally apply
hereinbelow) for each contract month (with respect to a Japanese bank holiday during theReference Quarter, the TONA Final result on the immediately preceding Japanese banking
day shall apply without calculation of compound interest) divided by the number ofcalendar days during such Reference Quarter and multiplied by 365.
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76-3.2 If the Bank of Japan corrects the uncollateralized overnight call rate (every
business day) after its public announcement, the corrected rate shall be used for the
calculation of the daily compounded interest, unless the rate was corrected after the last
settlement date.
76-3.3 The Exchange shall determine the final settlement figure of Three-month TONA
futures as the figure equal to 100 minus the interest rate per annum set forth in Article
76.3-1 above rounded off to the nearest third decimal point.
76-3.4 Notwithstanding the provisions of Articles 76-3.1 through 76-3.3 above, if the
Bank of Japan fails to announce the uncollateralized overnight call rates (every businessday) or in any other special circumstances, the final settlement figure of Three-month
TONA futures shall be determined by the Exchange.

Section 8.

（Deleted）

Articles 76-4. and 76-5.

Section 9.

(Deleted)(Deleted)

Articles 76-6. and 76-7 (Deleted)

CHAPTER XII.
SPECIAL PROVISIONS FOR OPTIONS ON THREE-MONTHEUROYEN FUTURES

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Section 1.

Payment of Option Premium

Article 77.

Payment of Option Premium

77.1
A Clearing Member shall, after it executes a purchase contract for option on
Three-month Euroyen futures (excluding Three-month Euroyen futures options contracts
which were discharged as a result of give-up; hereinafter called the “purchase contract” inthis Chapter XII except as referred to in Article 89 hereof) in its own name, pay theconsideration for the acquisition of an option on Three-month Euroyen futures (hereinafter
called the “option premium” in this Chapter XII) to the Exchange’s bank accountestablished at one of the Settlement Banks, not later than the time separately designatedby the Exchange of the business day (but not a Japanese bank holiday; if such business
day is a Japanese bank holiday, the business day immediately following such day which isa Japanese banking day; the same business-day convention shall apply hereinbelow)
immediately following the business day on which there occurs the day session of the
trading day on which such purchase contract is executed, in the manner prescribed by the
Exchange.
77.2
A Non-Clearing Member shall, after a purchase contract is executed as a
Securities, etc. Clearing-Brokering Contract at the bid or offer submitted by it, pay the
related option premium to its Designated Clearing Member, not later than the time
separately designated by the Exchange of the business day (or, with respect to a NonClearing Member who is also Japanese Yen Interest Rate Remote Trading Member, thesecond business day in principle) immediately following the business day on which there
occurs the day session of the trading day on which such purchase contract is executed.
77.3
When a sale contract (excluding Three-month Euroyen futures options contracts
which were discharged as a result of give-up; hereinafter called the “sale contract” in this
Chapter XII except as referred to in Article 89 hereof) has been executed in the name of aClearing Member, the Exchange shall pay the related option premium to the Clearing
Member’s bank account established at one of the Settlement Banks, not later than the time
separately designated by the Exchange of the business day immediately following thebusiness day on which there occurs the day session of the trading day on which such sale
contract is executed, in the manner prescribed by the Exchange.
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77.4
When a sale contract as a Securities, etc. Clearing-Brokering Contract has been
executed at the bid or offer submitted by a Non-Clearing Member, its Designated Clearing
Member shall pay the related option premium to the Non-Clearing Member, not later than
the time separately designated by the Exchange of the business day (or, with respect to a
Non-Clearing Member who is also Japanese Yen Interest Rate Remote Trading Member,the second business day in principle) immediately following the business day on which
there occurs the day session of the trading day on which such sale contract is executed.

Article 78.

Amount to be Paid or Received

The amount to be paid or received per trading unit pursuant to Articles 77.1
through 77.4 above shall be calculated in accordance with the following formula:¥ 2,500 x (contract price / 0.01)

Article 79.

Total Receivable Amount and Total Payable Amount

79.1
The amount which each Clearing Member shall pay to or receive from the
Exchange pursuant to Articles 77.1 and 77.3 hereof shall be the net difference between therespective aggregate amounts which such Clearing Member is to pay and those which it is
to receive as the option premiums which are payable or receivable with respect to such
Clearing Member.
79.2
The provisions of Article 79.1 above shall apply mutatis mutandis with respect tothe payment of option premiums between a Non-Clearing Member and its Designated
Clearing Member pursuant to Articles 77.2 and 77.4 hereof, respectively.

Article 80.

Regulations relating to Payment of Option Premium

In addition to the provisions of these Regulations, any matters necessary withrespect to the payment of the option premium shall be prescribed by the Exchange.

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Section 2.

Offsetting Transactions

Article 81.

Offsetting Transactions

81.1
In the event that a Clearing Member makes a purchase contract (hereinafter called“Repurchase” in this Chapter XII) in order to close out a short position arising from a
Three-month Euroyen futures option contracts executed in its own name and at the bid oroffer submitted by itself, or makes a sale contract (hereinafter called “Resale” in this
Chapter XII) in order to close out a long position arising from a Three-month Euroyen
futures option contracts executed in its own name and at the bid or offer submitted byitself, the Clearing Member shall notify the Exchange of the classification of Resale orRepurchase and its volume.
81.2
Upon receipt of the notification of Resale or Repurchase set forth in Article 81.1
above, the Exchange shall decrease the concerned Clearing Member’s short position orlong position by the volume of Resale or Repurchase advised in the said notification, which
volume of decrease will be finally settled.
81.3
Notwithstanding the provisions of Article 81.2 above, the Exchange may at its
discretion adjust the volume advised in the notification of Resale or Repurchase, if the
Exchange deems that the volume so advised may be inappropriate in the light of the criteria
separately prescribed by the Exchange, for example, the criteria whether the advised
volume exceeds the volume of the Three-month Euroyen futures option contracts executed
within the concerned trading day.

Article 82.

Offsetting Transactions by Non-Clearing Members

82.1
If a Non-Clearing Member makes a Repurchase or a Resale in order to close out
its Designated Clearing Member’s short position or long position arising from its
Securities, etc. Clearing-Brokering Contracts (hereinafter called the “Clearing-undertaken
Short Position” and the “Clearing-undertaken Long Position” respectively in this Chapter
XII), the Non-Clearing Member on behalf of its Designated Clearing Member shall notify
the Exchange of the classification of Resale or Repurchase and its volume; provided,
however, that the foregoing shall not preclude the Designated Clearing Member fromnotifying the Exchange of the same by itself.
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82.2
Upon receipt of the notification of Resale or Repurchase set forth in Article 82.1
above, the Exchange shall decrease the concerned Designated Clearing Member’s
Clearing-undertaken Short Position or Clearing-undertaken Long Position as settled by thevolume of Repurchase or Resale advised in the said notification.
82.3
Notwithstanding the provisions of Article 82.2 above, the Exchange may at its
discretion adjust the volume advised in the notification of Resale or Repurchase, if the
Exchange deems that the volume so advised may be inappropriate in the light of the criteria
separately prescribed by the Exchange, for example, the criteria whether the advised
volume exceeds the volume of the Three-month Euroyen futures option contracts executed
within the concerned trading day.
82.4
If a Non-Clearing Member makes the notification of Resale or Repurchase set
forth in Article 82.1 hereof, the Non-Clearing Member shall inform its Designated
Clearing Member of the effect of such notification without delay.

Article 83.

Particulars for Offsetting Transactions

In addition to the provisions of these Regulations, any matters necessary toprescribe in connection with the manner of filing of offsetting notifications, the period forfiling thereof and the procedures for correction of the contents of the notification shall beseparately prescribed by the Exchange.

Section 3.

Option Exercise

Article 84.

Option Exercisable Period

84.1
A Clearing Member or a Non-Clearing Member may notify the Exchange of
exercising an option on Three-month Euroyen futures in accordance with Article 85 below,
on any business day which falls during the period from and including the business day on
which the day session of the first trading day of each contract month occurs to andincluding the business day (hereinafter called the “option expiration date” in this Chapter
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XII) on which the day session of the last trading day of the same contract month occurs(hereinafter called the “option exercisable period” in this Chapter XII).
84.2
Notwithstanding the provisions of Article 84.1 above, the Exchange may,whenever it deems necessary, modify the option exercisable period for all or a part of any
specific series of option.

Article 85.

Notification of Option Exercise

85.1
In order to exercise options on Three-month Euroyen futures, a Clearing Memberor Non-Clearing Member shall notify the Exchange, not later than the time separately
designated by the Exchange (hereinafter called the “exercise notification deadline” in this
Chapter XII), of the volume of trading unit for each series on which it intends to exercise
options, which volume being indicated broken down by whether for a customer accountor for a house account, with respect to the long positions held by the Clearing Member (orin the case of a Non-Clearing Member, the Clearing-undertaken Long Positions held by its
Designated Clearing Member; the same interpretation shall apply hereinbelow in this
Article 85.1) at the close of the day session of the day on which such member intends toexercise the options (hereinafter called the “option exercise date” in this Chapter XII);
provided, however, that the foregoing does not preclude the Designated Clearing Member
from notifying the Exchange to such effect on behalf of the Non-Clearing Member.
Notwithstanding the foregoing, if the volume of any series of any whether for a customer
account or for a house account notified of by the Clearing Member or Non-Clearing
Member as the volume subject to option exercise exceeds the volume of the long positions
held by such member with respect to such series at such whether for a customer accountor for a house account at the close of the day session for the option exercise date, suchmember shall be deemed notified of its intention to exercise options by the volume of suchlong positions held by it.
85.2
When a Non-Clearing Member makes the notification of exercise of option, such
Non-Clearing Member shall without delay inform its Designated Clearing Member of such
effect.
85.3
The Exchange may halt the option exercise of all or a part of the series in themanner prescribed by the Exchange, should the trading in Three-month Euroyen futures
or options on Three-month Euroyen futures be suspended, should the Exchange System
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fail to operate, or should there be any other reasons which would cause the Exchange todeem it inappropriate to allow options to be exercised.

Article 86.

Automatic Option Exercise

86.1
Notwithstanding the provisions of Article 85.1 above, a Clearing Member or NonClearing Member shall be deemed to have notified the Exchange of exercising a put option
on Three-month Euroyen futures of which the strike price exceeds the final settlement
figure for the relevant underlying futures, or a call option on Three-month Euroyen futuresof which the strike price is lower than the final settlement figure for the relevant underlying
futures, even when such member did not notify the Exchange of exercising such option by
the exercise notification deadline after the closing of the day session on the option
expiration date, except where such member notifies the Exchange of not exercising such
option by the time separately designated by the Exchange, in which case the Designated
Clearing Member shall not be precluded from notifying the Exchange to such effect onbehalf of the Non-Clearing Member concerned.
86.2
When a Non-Clearing Member makes a notification of not exercising the said
option, such Non-Clearing Member shall without delay inform its Designated Clearing
Member to such effect.
86.3
The Exchange may elect not to apply the provisions of Article 86.1 hereof withrespect to all or part of the series in the manner prescribed by the Exchange, should the
trading in Three-month Euroyen futures or Three-month Euroyen futures option contracts
be suspended, should the Exchange System fail to operate, or should there be any otherreasons which would cause the Exchange to deem it inappropriate to allow options to be
exercised.

Article 87.

Assignment

87.1
When a Clearing Member or Non-Clearing Member notifies or is deemed to havenotified the Exchange of the option exercise under the provisions of Article 85.1 or 86.1
above, the Exchange shall, in the manner separately prescribed by the Exchange, select the
short positions and/or the Clearing-undertaken Short Positions with the same series and in
the same volume of trading units as the long positions so notified for the exercise, from
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among those (excluding the Clearing-undertaken Short Positions) held by Clearing
Members or the Non-Clearing Members on behalf of whom the Clearing-undertaken Short
Positions are held by its Designated Clearing Member, at the close of the day session of
the option exercise date. This process shall be hereinafter called “assignment” in this
Chapter XII.
87.2
Upon making an assignment, the Exchange shall notify the relevant Clearing
Member or Non-Clearing Member of the details of such assignment without delay,
specifying whether the assignment is for its own account or for the accounts other than the
Trading Member’s house account (in the case of a Clearing Member, excluding its
Clearing-undertaken Short Positions).
87.3
When a Non-Clearing Member receives a notification of assignment set forth in
Article 87.2 above, such Non-Clearing Member shall notify its Designated Clearing
Member of the details of such assignment without delay.

Article 88.

Decrease in Positions resulting from Option Exercise

88.1
When a Clearing Member notifies the Exchange of the exercise of options on any
business day except for the relevant option expiration date under the provisions of Article
85.1 hereof, the Exchange shall decrease the long positions held by such Clearing Member
at the close of the day session of the relevant option exercise date, by the volume of trading
units of the options so notified for the option exercise, as at the time of the relevant option
exercise date separately designated by the Exchange.
88.2

When a Non-Clearing Member notifies the Exchange of the exercise of options

on any business day except for the relevant option expiration date under the provisions ofArticle 85.1 hereof, the Exchange shall decrease the Clearing-undertaken Long Positions
held by the Designated Clearing Member of such Non-Clearing Member at the close of
the day session of the relevant option exercise date, by the volume of trading units of theoptions so notified for the option exercise, as at the time of the relevant option exercise
date separately designated by the Exchange.
88.3
When the Exchange makes an assignment to a Clearing Member on any business
day except for the relevant option expiration date under the provisions of Article 87.1
above, the Exchange shall decrease the short positions held by such Clearing Member at
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the close of the day session of the relevant option exercise date, by the volume of trading
units relating to such assignment, as at the time of the relevant option exercise dateseparately designated by the Exchange.
88.4
When the Exchange makes an assignment to a Non-Clearing Member on any
business day except for the relevant option expiration date under the provisions of Article
87.1 above, the Exchange shall decrease the Clearing-undertaken Short Positions held by
the Designated Clearing Member of such Non-Clearing Member at the close of the day
session of the relevant option exercise date, by the volume of trading units relating to suchassignment, as at the time of the relevant option exercise date separately designated by the
Exchange.
88.5
The provisions of Articles 88.1 through 88.4 above shall apply mutatis mutandis
in cases where a Clearing Member or Non-Clearing Member notifies the Exchange of theexercise of options under the provisions of Article 85.1 hereof, or a Clearing Member or
Non-Clearing Member is deemed to have notified the Exchange of the exercise of options
under the provisions of Article 86.1 hereof, or a Clearing Member or Non-Clearing
Member receives the assignment under the provisions of Article 87.1 above, in each caseon the option expiration date, with the substitution of the words “the relevant option
exercise date” used in Articles 88.1 through 88.4 above for the words “the relevant option
expiration date”.

Article 89.

89.1

Three-month Euroyen Futures Contracts resulting from Option
Exercise and Assignment

In the event that on any business day except for the relevant option expiration

date, a Clearing Member (hereinafter called the “Exercising Clearing Member” in this
Chapter XII) notifies the Exchange of the exercise of a put option on Three-month Euroyen
futures under the provisions of Article 85.1 hereof, or a Clearing Member (hereinafter
called the “Assigned Clearing Member” in this Chapter XII) receives assignment withrespect to a put option on Three-month Euroyen futures under the provisions of Article
87.1 hereof, the Exercising Clearing Member shall be deemed to have executed with the
Exchange a sale contract of the underlying futures or the Assigned Clearing Member shallbe deemed to have executed with the Exchange a purchase contract of the underlying
futures, with the contract figure equal to the relevant strike price, as at the time of therelevant option exercise date separately designated by the Exchange.
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89.2
In the event that on any business day except for the relevant option expiration
date, a Non-Clearing Member (hereinafter called the “Exercising Non-Clearing Member”
in this Chapter XII) notifies the Exchange of the exercise of a put option on Three-month
Euroyen futures under the provisions of Article 85.1 hereof, or a Non-Clearing Member(the “Assigned Non-Clearing Member” in this Chapter XII) receives assignment withrespect to a put option on Three-month Euroyen futures under the provisions of Article
87.1 hereof, the Designated Clearing Member of the Exercising Non-Clearing Member
shall be deemed to have executed with the Exchange a sale contract of the underlying
futures as a Securities, etc. Clearing-Brokering Contract or the Designated Clearing
Member of the Assigned Non-Clearing Member shall be deemed to have executed with
the Exchange a purchase contract of the underlying futures as a Securities, etc. ClearingBrokering Contract, with the contract figure equal to the relevant strike price, as at the timeof the relevant option exercise date separately designated by the Exchange.
89.3
In the event that on any business day except for the relevant option expiration
date, an Exercising Clearing Member notifies the Exchange of the exercise of a call option
on Three-month Euroyen futures under the provisions of Article 85.1 hereof, or an
Assigned Clearing Member receives assignment with respect to a call option on Threemonth Euroyen futures under the provisions of Article 87.1 hereof, the Exercising Clearing
Member shall be deemed to have executed with the Exchange a purchase contract of theunderlying futures or the Assigned Clearing Member shall be deemed to have executedwith the Exchange a sale contract of the underlying futures, with the contract figure equal
to the relevant strike price, as at the time of the relevant option exercise date separately
designated by the Exchange.
89.4

In the event that on any business day except for the relevant option expiration

date, an Exercising Non-Clearing Member notifies the Exchange of the exercise of a call
option on Three-month Euroyen futures under the provisions of Article 85.1 hereof, or an
Assigned Non-Clearing Member receives assignment with respect to a call option on
Three-month Euroyen futures under the provisions of Article 87.1 hereof, the Designated
Clearing Member of the Exercising Non-Clearing Member shall be deemed to haveexecuted with the Exchange a purchase contract of the underlying futures as a Securities,
etc. Clearing-Brokering Contract or the Designated Clearing Member of the Assigned
Non-Clearing Member shall be deemed to have executed with the Exchange a sale contractof the underlying futures as a Securities, etc. Clearing-Brokering Contract, with thecontract figure equal to the relevant strike price, as at the time of the relevant option
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exercise date separately designated by the Exchange.
89.5
The provisions of Articles 89.1 through 89.4 above shall apply mutatis mutandis
in cases where a Clearing Member or Non-Clearing Member notifies the Exchange of theexercise of options under the provisions of Article 85.1 hereof, or a Clearing Member or
Non-Clearing Member is deemed to have notified the Exchange of the exercise of options
under the provisions of Article 86.1 hereof, or a Clearing Member or Non-Clearing
Member receives the assignment under the provisions of Article 87.1 hereof, in each caseon the relevant option expiration date, with the substitution of the words “the relevant
option exercise date” used in Articles 89.1 through 89.4 above for the words “the relevant
option expiration date”.
89.6
A Three-month Euroyen futures contract resulting from the option exercise or theassignment shall not be subject to the provisions of Article 18.1 of the Trading Regulations.
89.7
When, as a result of the option exercise or the assignment, a Three-month Euroyen
futures contract is deemed to have been executed in the name of the Designated Clearing
Member of a Non-Clearing Member, the Exchange on behalf of the Non-Clearing Member
shall notify its Designated Clearing Member of the details of the Three-month Euroyen
futures contract that may be necessary to clear the same as a Securities, etc. ClearingBrokering Contract, after the close of the day session on the day on which such Threemonth Euroyen futures contract is deemed to have been executed.

Section 4.

Daily Settlement Price

Article 90.

Determination of Daily Settlement Price

90.1
After the close of the day session of each trading day, the Exchange shalldetermine a price for each series (hereinafter called the “Daily Settlement Price” in this
Article) upon the basis of which the Exchange Margin, Non-Clearing Member Margin andCustomer Margin applicable for such trading day shall be calculated, and notify the
Clearing Members and the Non-Clearing Members of such Daily Settlement Price.
90.2

The Daily Settlement Price for each series prescribed in Article 90.1 above shall134

Clearing Regulations

be the figure calculated by the Exchange as to be a theoretical price in the mannerseparately prescribed by the Exchange.
90.3
Notwithstanding the provisions of Article 90.2 above, the Daily Settlement Pricefor each series of a put option on Three-month Euroyen futures on the last trading day shallbe the strike price for such series less the daily settlement figure on the last trading day forthe underlying futures of such series, and the Daily Settlement Price for each series of acall option on Three-month Euroyen futures on the last trading day shall be the daily
settlement figure on the last trading day for the underlying futures of such series less thestrike price for such series; provided, however, that should the figure so calculated fall
below zero (0) in either case, the Daily Settlement Price for the relevant series on the last
trading day shall be zero (0).

CHAPTER XIII.
SPECIAL PROVISIONS FOR FX DAILY FUTURES
TRANSACTIONS

Section 1.

FX Settlement Price

Article 90-2.

FX Settlement Price90-2.1 With respect to an FX Daily Futures transaction, the Exchange shall set the price(hereinafter called the “FX Settlement Price”) after the close of the Market Trading Periodof each trading day (meaning the trading day specified in Article 2(15) of the FX Special
Provisions, which interpretation shall equally apply hereinafter in this Chapter XIII). The
FX Settlement Price so established shall be used as the indicative price to calculate theinitial FX revaluation profit or loss set forth in Article 90-4 hereof, the daily FX revaluation
profit or loss set forth in Article 90-5 hereof for that trading day and the fixed FX
revaluation profit or loss set forth in Article 90-7.2 hereof, respectively, and shall beadvised to Daily Futures Clearing Members who conducts the clearing business with
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Clearing Regulationsrespect to FX Daily Futures contracts.
90-2.2 The FX Settlement Price referred to in Article 90-2.1 above shall be obtained byreference to the contract price of the relevant FX Daily Futures contract that has been
executed by Market-Making Method during such specific period of time before the closeof the Market Trading Period for the relevant trading day as may be determined by the
Exchange; provided, however, that if the Exchange judges any FX Settlement Price so
calculated is inappropriate, the Exchange may adopt another appropriate price as the FX
Settlement Price.
90-2.3 The FX Settlement Price shall be determined in accordance with the conditions
separately prescribed by the Exchange if there is no contract price during the specificperiod of time referred to in Article 90-2.2 above.

Section 2.

Rollover

Article 90-3.

RolloverIf neither filing of offsetting notification (meaning the “filing of offsetting
notification” defined in Article 90-9.1(1) hereof; the same interpretation shall equally
apply hereinafter) nor execution of offsetting transaction (meaning the “execution of
offsetting transaction” defined in Article 90-9.1(2) hereof; the same interpretation shallequally apply hereinafter) is made for the short position or long position arising under an
FX Daily Futures transaction until the close of the Market Trading Period for each trading
day on which such position exists, those positions whose contract day is that trading day
shall be discharged at the close of the said Market Trading Period, and concurrently
therewith, positions under the same terms and conditions as those of the discharged
positions, except for their contract day being the trading day immediately following thattrading day, shall newly arise between the Exchange and the Daily Futures Clearing
Member who has held the discharged position. The said discharge and arising of
positions shall be called a “rollover” in this Chapter XIII only.

Article 90-4.

Initial FX Revaluation Profit or Loss
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With respect to an FX Daily Futures contract which is newly executed, where thecontract is rollovered and there is a difference between the FX Settlement Price for the
trading day on which the contract is executed and the contract price of that contract, an FX
revaluation profit or loss shall arise from that contract at the positive or negative
calculatory amount obtained based on that difference (hereinafter called “initial FX
revaluation profit or loss”).

Article 90-5.

Daily FX Revaluation Profit or Loss

With respect to an FX Daily Futures contract which has been executed under atransaction on or before the trading day immediately preceding any given trading day,where the contract is rollovered and there is a difference between the FX Settlement Pricefor that trading day and the FX Settlement Price on the trading day immediately precedingthat trading day (hereinafter called the “FX Settlement Price for the Preceding TradingDay”), an FX revaluation profit or loss shall arise from that contract at the positive or
negative calculatory amount obtained based on that difference (hereinafter called “daily
FX revaluation profit or loss”).

Article 90-6.

Swap Point

With respect to a long position and a short position arising under an FX Daily
Futures transaction, if the final settlement date for the FX cash settlement with respect tothe said position is postponed due to rollover, a positive or negative calculatory amountobtained in the manner separately prescribed by the Exchange (hereinafter called “swappoint” in this Chapter XIII) shall arise for the purpose of reconciliation of, among otherthings, the difference between the applicable interest rate of one of the denomination
currencies of the said positions and that of the other denomination currency thereof,
according to the number of days of the postponement and the type of the FX Daily Futurescontract in question.

Section 3.

Settlement of FX Daily Futures Transaction
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Clearing Regulations

Article 90-7.

Settlement of FX Daily Futures Transaction

90-7.1 A short position or a long position under an FX Daily Futures transaction shall besettled in the manner that either filing of offsetting notification or execution of offsetting
transaction (hereinafter collectively called “notification or execution of offsetting
transaction” in this Chapter XIII only) is made and the resulting FX variation (meaning
the FX variation set forth in Article 90-8.1 below) is transferred to the FX Exchange
Margin (such manner of settlement is hereinafter called “FX cash settlement”).
90-7.2 If the following difference arises under the following circumstances as aconsequence of notification or execution of offsetting transaction, an FX revaluation profit
or loss shall arise at the positive or negative calculatory amount obtained based on thatdifference (hereinafter called “fixed FX revaluation profit or loss”):(1)

Where an offsetting notification is filed, either of the differences set forthin (a) and (b) below whichever is applicable:(a)If both the short position and the long position to be settled havearisen from the transactions that are both executed on the trading
day on which the offsetting notification is filed:
Difference of the contract prices between those transactions(b)

If either the short position or the long position to be settled has
arisen from the transaction that is executed on the trading day
on which the offsetting notification is filed, and the otherposition has arisen from rollover:Difference between the contract price under the said transaction
executed on the trading day on which the offsetting notification
is filed and the FX Settlement Price quoted on one (1) trading
day before the said trading day(2)

Where an offsetting transaction is executed:
Difference between the contract price under the offsetting transaction
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and the price set forth in (a) or (b) below, whichever is applicable:

Article 90-8.

(a)Where the position to be settled has arisen from the transaction
executed on the trading day on which the offsetting transaction
is executed, the contract price of the said transaction(b)

Where the position to be settled has arisen from rollover, the FX
Settlement Price quoted on one (1) trading day before thetrading day on which the offsetting transaction is executed

FX Variation

90-8.1 An FX variation which is the subject of an FX cash settlement set forth in Article
90-7.1 above shall be the sum of the following calculatory amounts which have arisen withrespect to the positions under the relevant FX Daily Futures contract:(1)

Amount of initial FX revaluation profit or loss;(2)

Cumulative amount of daily FX revaluation profits and losses;(3)

Amount of fixed FX revaluation profit or loss; and(4)

Cumulative amount of swap points.

90-8.2 With respect to a Cross Currency Pairs transaction (meaning the “Cross Currency
Pairs transaction” defined in Article 2(20) of the FX Special Provisions, whichinterpretation shall equally apply in this Article 90-8.2 and Article 90-8.3 below), theamount specified in each Item of Article 90-8.1 above shall be calculated in the
denomination of the Term Currency (meaning the “Term Currency” defined in Article
2(22) of the FX Special Provisions, which interpretation shall equally apply in this Article
90-8.2 and Article 90-8.3 below) of the relevant Cross Currency Pairs transaction, and thenconverted into the Japanese Yen amount at either of the following amounts as applicable:(a) if converted on a trading day on which a rollover arises, the FX Settlement Price applied
to the Yen Currency Pairs transaction (meaning the “Yen Currency Pairs transaction”
defined in Article 2(19) of the FX Special Provisions (meaning the Yen Currency Pairs
transaction of a Large transaction if such Cross Currency Pairs transaction is the Large
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transaction (meaning a Large transaction as defined in Article 2 (19) of the FX Special
Provisions) and the Yen Currency Pairs transaction of a Non-large transaction if such Cross
Currency Pairs transaction is the Non-large transaction (meaning a Large transaction as
defined in Article 2 (24) of the FX Special Provisions)), which interpretation shall equally
apply throughout in this Article 90-8.2) with respect to the said Term Currency as of thattrading day; and (b) if converted on a trading day on which the notification or executionof offsetting transaction is made, the FX Settlement Price applied to the Yen Currency
Pairs transaction with respect to the said Term Currency as of that trading day, as the casemay be.
90-8.3 Notwithstanding Article 90-8.2 above, with respect to a Yen Currency Pairs
transaction which is executed based on the obligation of the designated FX Market Maker(meaning the “designated FX Market Maker” defined in Article 17-2.1 of the FX Special
Provisions) to quote an MM bid or offer, the transfer under Article 90-7.1 shall be made in
the denomination of the Term Currency of the relevant Cross Currency Pairs transaction.

Article 90-9.

Methods for Settlement of Positions

90-9.1 A position held by a Daily Futures Clearing Member under an FX Daily Futurescontract shall be settled by either of the following methods whichever is applicable:(1)

Filing of offsetting notification (meaning that, where the FX Daily
Futures Clearing Member simultaneously holds both a short position anda long position under one same kind of FX Daily Futures contracts, thefiling with the Exchange by which the said short position and the longposition are reduced by the same volume)(2)

Execution of offsetting transaction (meaning that, where the FX Daily
Futures Clearing Member under any given kind of FX Daily Futurescontracts holds a short position, a corresponding purchase contract of thesame kind is executed, or where it holds a long position, a corresponding
sale contract of the same kind is executed, so that the short position or
the long position, as the case may be, shall be immediately reduced, by
the volume of the short position or the corresponding purchase contract
whichever is smaller, or of the long position or the sale contract
whichever is smaller, as the case may be.)140

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90-9.2 When an offsetting notification is filed, the designated short position and longposition held at the relevant Daily Futures Clearing Member’s house account and/or ateach of its Customer’s accounts shall be reduced individually, pursuant to the details of thenotification on the trading day on which the offsetting notification is filed.
90-9.3 In the case of an offsetting transaction, when a Daily Futures Clearing Member
enters into another FX Daily Futures transaction specified in the following items, unlessotherwise prescribed by the Exchange, the said transaction shall be deemed to be atransaction of Repurchase or Resale for the said short positions or long positions, so thatsuch short position or long position, as the case may be, will be closed out by the
Repurchase or the Resale volume being applied to the existing short or long positions on
first-in- first-out basis:(1)

Where the Daily Futures Clearing Member, holding a short position
under an FX Daily Futures transaction for its house account, newly enters
into a purchase contract for an FX Daily Futures transaction for its houseaccount;(2)

Where the Daily Futures Clearing Member, holding a long position underan FX Daily Futures transaction for its house account, newly enters intoa sale contract for an FX Daily Futures transaction for its house account;(3)

Where the Daily Futures Clearing Member, holding a short position
under an FX Daily Futures transaction based on an order of a Customer
with respect to that FX Daily Futures transaction (hereinafter called “FX
Daily Futures Customer”), newly enters into a purchase contract for an
FX Daily Futures transaction for the account of the FX Daily Futures
Customer based on an order of the same FX Daily Futures Customer; or(4)

Where the Daily Futures Clearing Member, holding a long position underan FX Daily Futures transaction based on an order of an FX Daily
Futures Customer, newly enters into a sale contract for an FX Daily
Futures transaction for the account of the FX Daily Futures Customer
based on an order of the same FX Daily Futures Customer.

90-9.4 The method for the settlement of position shall be selected by each Daily Futures
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Clearing Member from between those specified in each Item of Article 90-9.1 above withrespect to its house account and each of its Customer account individually. Provided,
however, that any position held by a Daily Futures Clearing Member as a consequence ofan FX Daily Futures contract that has been executed based on the obligation of the FX
Market Maker (meaning the “FX Market Maker” defined in Article 2(4) of the FX Special
Provisions) to quote an MM bid or offer may only be settled by way of execution of
offsetting transaction.

Article 90-9-2.

Methods for Settlement of Positions by Non-Clearing Member
under FX Daily Futures Contracts

90-9-2.1
A Non-Clearing Member acting in such capability in an FX Daily
Futures contract (hereinafter called “FX Daily Futures Non-Clearing Member”) shall settle
the position under an FX Daily Futures transaction which is executed in the name of the
Designated Clearing Member acting on its behalf thereunder at the bid or offer submitted
by such FX Daily Futures Non-Clearing Member, by either of the following methods
whichever is applicable:(1)

Filing of offsetting notification(2)

Execution of offsetting transaction

90-9-2.2
When an offsetting notification is filed, the designated short position andlong position held at the relevant FX Daily Futures Non-Clearing Member’s house accountand/or at each of its Customer’s accounts shall be reduced individually, pursuant to thedetails of the notification on the trading day on which the offsetting notification is filed.
90-9-2.3
In the case of an offsetting transaction, when an FX Daily Futures NonClearing Member enters into another FX Daily Futures transaction specified in thefollowing items, unless otherwise prescribed by the Exchange, the said transaction shallbe deemed to be a transaction of Repurchase or Resale for the said short positions or longpositions, so that such short position or long position, as the case may be, will be closedout by the Repurchase or the Resale volume being applied to the existing short or longpositions on first-in-first-out basis.
(1)

Where the FX Daily Futures Non-Clearing Member holds a short
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position under an FX Daily Futures transaction for its house account, anewly-entered purchase contract for an FX Daily Futures transaction for
its house account;(2)

Where the FX Daily Futures Non-Clearing Member holds a long position
under an FX Daily Futures transaction for its house account, a newlyentered sale contract for an FX Daily Futures transaction for its houseaccount;(3)

Where the FX Daily Futures Non-Clearing Member holds a shortposition under an FX Daily Futures transaction based on an order of a
Customer, a newly-entered purchase contract for an FX Daily Futurestransaction for the account of such Customer based on the order of such
Customer; or(4)

Where the FX Daily Futures Non-Clearing Member holds a long position
under an FX Daily Futures transaction based on an order of a Customer,
a newly-entered sale contract for an FX Daily Futures transaction for theaccount of such Customer based on the order of such Customer.

90-9-2.4
The method for the settlement of position shall be selected by each FX
Daily Futures Non-Clearing Member from among those specified in each Item of Article
90-9-2.1 above with respect to its house account and each of its Customer accountindividually. Provided, however, that any position held by an FX Daily Futures NonClearing Member as a consequence of an FX Daily Futures contract that has been executed
based on the FX Market Maker’s obligation to quote an MM bid or offer may only besettled by way of execution of offsetting transaction.

Article 90-9-3. Filing of Offsetting Notification Concerning FX Daily Futures
Contracts
90-9-3.1
An offsetting of positions through filing of notification of offsetting
notification may be made during the period separately designated by the Exchange, only
if the Daily Futures Clearing Member holds both the short position and long position to besettled simultaneously.
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90-9-3.2
A Daily Futures Clearing Member who wishes to reduce any shortposition(s) and long position(s) held by it through filing of offsetting notification shall filethat notification with the Exchange stating the following details with respect to its houseaccount and/or its Customer’s account(s) individually:(1)

Statement that it will reduce both the short position(s) and the longposition(s) through filing of that offsetting notification(2)

If it has short positions under more than one (1) sale contract or longpositions under more than one (1) purchase contract, identification of thesale contract in respect of the short position(s) to be reduced or thepurchase contract in respect of the long position(s) to be reduced(3)

Amount by which it wishes to reduce the short position(s) and the longposition(s)90-9-3.3
An FX Daily Futures Non-Clearing Member who wishes to reduce
any short position(s) and long position(s) held by it through filing of offsetting
notification shall file that notification with the Exchange stating the following
details with respect to its house account and/or its Customer’s account(s)individually for and on behalf of its Designated Clearing Member. Provided,
however, the foregoing shall not prevent such Designated Clearing Member fromfiling that notification by itself:(1)

Statement that it will reduce both the short position(s) and the longposition(s) through filing of that offsetting notification(2)

If it has short positions under more than one (1) sale contract or longpositions under more than one (1) purchase contract, identification of thesale contract in respect of the short position(s) to be reduced or thepurchase contract in respect of the long position(s) to be reduced(3)

Amount by which it wishes to reduce the short position(s) and the longposition(s)Article 90-10.

Payment and Receipt of Money with respect to FX Daily
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Futures Contracts
Whenever a Daily Futures Clearing Member shall pay to or receive from the
Exchange any money with respect to an FX Daily Futures contract, it shall do so throughits account established at the Designated Service Office of the settlement bank for an FX
Daily Futures transaction (hereinafter called the “FX Exchange Margin Settlement Bank”)
by the date and time prescribed by the FX Margin Regulations and the FX Exchange
Margin Settlement Regulations.

Article 90-11.

Detailed Rules for Financial Instruments Obligation
Assumption Business relating to FX Daily Futures
Transactions

In addition to the provisions of these Regulations, any matters necessary toprescribe in connection with the manner of conduct of financial instruments obligation
assumption business relating to FX Daily Futures transactions and any and all businesses
pertaining thereto shall be separately prescribed by the Exchange.

CHAPTER XIII-II.
SPECIAL PROVISIONS FOR EQUITY INDEX DAILY FUTURES
TRANSACTIONS

Section 1.

Equity Index Settlement Price

Article 90-12. Equity Index Settlement Price90-12.1
With respect to an Equity Index Daily Futures transaction, the Exchange
shall set the price (hereinafter called the “Equity Index Settlement Price”) after the closeof the Market Trading Period of each trading day (meaning the trading day specified in
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Article 2(15) of the Equity Index Special Provisions, which interpretation shall equally
apply hereinafter in this Chapter XIII-II). The Equity Index Settlement Price soestablished shall be used as the indicative price to calculate the initial Equity Index
revaluation profit or loss set forth in Article 90-14 hereof, the daily Equity Index
revaluation profit or loss set forth in Article 90-15 hereof for that trading day and the final
Equity Index revaluation profit or loss set forth in Article 90-18.2 hereof, respectively, andshall be advised to Daily Futures Clearing Members who conducts clearing business for
Equity Index Daily Futures transactions.
90-12.2
An Equity Index Settlement Price shall be obtained by reference to thecontract price of the relevant Equity Index Daily Futures contract that has been executedby Market-Making Method during such specific period of time before the close of theMarket Trading Period for the relevant trading day as may be determined by the Exchange;
provided, however, that if the Exchange judges any Equity Index Settlement Price so
calculated is inappropriate, the Exchange may adopt another appropriate price as theEquity Index Settlement Price.
90-12.3

The Equity Index Settlement Price shall be determined in accordancewith the conditions separately prescribed by the Exchange if there is no contract priceduring the specific period of time referred to in Article 90-12.2 above.
90-12.4
Notwithstanding Article 90-12.2 and Article 90-12.3 above, an Equity
Index Settlement Price on a certain Reset Date (meaning the Reset Date defined in Article
2 (25) of the Equity Index Special Provisions; the same interpretation shall equally apply
hereinafter) of an Equity Index Daily Futures contract whose such Reset Date has arrived
shall be the Reset Price (meaning the Reset Price defined in Article 90-18-2.1; the sameinterpretation shall equally apply in Article 90-18).

Section 2.

Rollover

Article 90-13. Rollover
If neither filing of offsetting notification (meaning the “filing of offsetting
notification” defined in Article 90-20.1(1) hereof; the same interpretation shall equally146

Clearing Regulations

apply hereinafter) nor execution of offsetting transaction (meaning the “execution of
offsetting transaction” defined in Article 90-20.1(2) hereof; the same interpretation shallequally apply hereinafter) is made for the short position or long position arising under an
Equity Index Daily Futures transaction until the close of the Market Trading Period foreach trading day on which such position exists, those positions whose contract day is thattrading day shall be discharged at the close of the said Market Trading Period, andconcurrently therewith, positions under the same terms and conditions as those of thedischarged positions, except for their contract day being the trading day immediately
following that trading day (with respect to the Equity Index Daily Futures contract whose
last trading day has arrived, the Reset Date) shall newly be created between the Exchange
and the Daily Futures Clearing Member who has held the discharged position. The said
discharge and creation of positions shall be called a “rollover” in this Chapter XIII-II only.

Article 90-14. Initial Equity Index Revaluation Profit or Loss
With respect to an Equity Index Daily Futures contract which is newly executed,
where the contract is rollovered and there is a difference between the Equity Index
Settlement Price for the trading day on which the contract is executed and the contract
price of that contract, an Equity Index variation shall arise from that contract at the positiveor negative calculatory amount obtained based on that difference (hereinafter called “initial
Equity Index revaluation profit or loss”).

Article 90-15. Daily Equity Index Revaluation Profit or Loss
With respect to an Equity Index Daily Futures contract which has been executed
under a transaction on or before the trading day immediately preceding any given trading
day, where the contract is rollovered and there is a difference between the Equity Index
Settlement Price for that trading day and the Equity Index Settlement Price on the trading
day immediately preceding that trading day, an Equity Index variation shall arise from that
contract at the positive or negative calculatory amount obtained based on that difference(hereinafter called “daily Equity Index revaluation profit or loss”).

Article 90-16. Daily Interest Rate Amount
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90-16.1
If rollover is made with respect to a position for an Equity Index Daily
Futures contract and the settlement date designated for the settlement referred to in Article
90-18.1 hereof with respect to such position is postponed by such rollover, a positive or
negative calculatory amount each calculated for the postponed period in the mannerseparately prescribed by the Exchange for each type of Equity Index Daily Futures contract(hereinafter called “daily interest rate amount”) shall arise.
90-16.2
The daily interest rate amount shall be a positive amount for the holderof the short position under an Equity Index Daily Futures contract and shall be a negative
amount for the holder of the long position thereunder at the close of the trading day.
90-16.3
If the Exchange judges that the daily interest rate amount calculated in
the manner set forth in Article 90-16.1 and Article 90-16.2 above is improper, theExchange shall determine the daily interest rate amount in the manner deemed appropriateby the Exchange.

Article 90-17. Dividend Amount90-17.1
With respect to the positions taken for an Equity Index Daily Futurescontract, if payment of dividend is expected on an issue comprising the equity index tradedunder the Equity Index Daily Futures contract, a positive or negative calculatory amountcalculated in the manner separately prescribed by the Exchange to be correspondent to thetheoretical amount by which the expected dividend payment would affect the equity index(hereinafter called “dividend amount”) shall arise.
90-17.2

If payment of dividend on any issue comprising the equity index tradedunder an Equity Index Daily Futures contract as specified in Article 90-17.1 above is
expected, the amount correspondent to the dividend amount shall be a positive figure forthe holder of the long position under such Equity Index Daily Futures contract and shallbe a negative figure for the holder of the short position thereunder as at the close of the
trading day which is the same as the last purchase day by which the acquirer of such issue
can be vested the dividend right.
90-17.3
In the case of Article 90-17.2 above, if the said last purchase day does
not fall on a trading day of the Equity Index Daily Futures contract referred to therein, thewords “the trading day which is the same as the last purchase day” used therein shall be
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read as “the trading day which is immediately preceding the last purchase day” for the
purpose of application thereof.
90-17.4
The provisions of Articles 90-17.1 through 90-17.3 above shall not apply
to DAX® Daily Futures contracts with Reset Date, Gold ETF Daily Futures contracts with
Reset Date, WTI ETF Daily Futures contracts with Reset Date, Silver ETF Daily Futurescontracts with Reset Date and Platinum ETF Daily Futures contracts with Reset Date.

Section 3.

Settlement of Equity Index Daily Futures Transaction

Article 90-18. Methods for Settlement of Equity Index Daily Futures
Transaction
90-18.1
A short position or a long position under an Equity Index Daily Futurestransaction shall be settled in the manner that either filing of offsetting notification,
execution of offsetting transaction or Reset (meaning that a short position or a longposition for which offsetting notification has not been filed or offsetting transaction has
not been executed until the last trading day (which shall be referred to as the “Reset
Position” in the immediately following Article) is settled at a Reset Price; the sameinterpretation shall apply hereinafter) (hereinafter collectively called “notification or
execution of offsetting transaction” in this Chapter XIII-II only) is made and that theresulting Equity Index variation (meaning the Equity Index variation set forth in Article
90-19 hereof) that is recognized as a profit shall be added to the Equity Index Exchange
Margin and the same that is recognized as a loss shall be deducted from the Equity Index
Exchange Margin.
90-18.2
If the following difference arises under the following circumstances as aconsequence of notification or execution of offsetting transaction, an Equity Index
revaluation profit or loss shall arise at the positive or negative calculatory amount obtained
based on that difference:(1)

Where an offsetting notification is filed, either of the differences set forthin (a) and (b) below whichever is applicable:
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(a)If both the short position and the long position to be settled havearisen from the transactions that are both executed on the trading
day on which the offsetting notification is filed:
Difference of the contract prices between those transactions(b)

If either the short position or the long position to be settled has
arisen from the transaction that is executed on the trading day
on which the offsetting notification is filed, and the otherposition to be settled has arisen from rollover:Difference between the contract price under the said transaction
executed on the trading day on which the offsetting notification
is filed and the Equity Index Settlement Price quoted on one (1)trading day prior to the said trading day(2)

Where an offsetting transaction is executed:
Difference between the contract price under the offsetting transaction
and the price set forth in (a) or (b) below, whichever is applicable:(a)Where the position to be settled has arisen from the transaction
executed on the trading day on which the offsetting transaction
is executed, the contract price of the said transaction(b)

Where the position to be settled has arisen from rollover, theEquity Index Settlement Price quoted on one (1) trading dayprior to the trading day on which the offsetting transaction is
executed(3)

Where a Reset is executed:
Difference between the Reset Price and the Equity Index Settlement
Price on the last trading day

Article 90-18-2.

Method of Determination of Reset Price
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90-18-2.1
The Exchange shall calculate the settlement price of the Reset Position
for each type of Equity Index Daily Futures contract on the Reset Date (hereinafter referred
to as the “Reset Price”) in the manner set forth in each Item below:(1)

Nikkei 225 Daily Futures contracts with Reset Date
Special quotation calculated by Osaka Exchange, Inc. in the manner set
forth in its business regulations on the Reset Date as the price for final
settlement of futures transactions whose underlying asset is Nikkei Stock
Average (limited to those listed on the exchange financial instruments
market opened by the said exchange and the final settlement of which
occurs in the month in which the Reset Date falls), rounded off to thenearest whole number(2)

DAX® Daily Futures contracts with Reset Date
Figure calculated by Deutsche Borse AG on a trading day whose opening
time of the Market Trading Period of DAX® Daily Futures contracts
with Reset Date falls on the business day immediately preceding theReset Date as the price for final settlement of futures transactions whose
underlying asset is DAX® (limited to those listed on the overseas
financial instruments market opened by Eurex Exchange and the final
settlement of which occurs in the month in which the Reset Date falls),
rounded off to the nearest whole number(3)

FTSE 100 Daily Futures contracts with Reset Date
Figure calculated by FTSE International Limited on a trading day whose
opening time of the Market Trading Period of FTSE 100 Daily Futurescontracts with Reset Date falls on the business day immediately
preceding the Reset Date as the price for final settlement of futurestransactions whose underlying asset is FTSE 100 (limited to those listedon the overseas financial instruments market opened by ICE Futures
Europe and the final settlement of which occurs in the month in which
the Reset Date falls), rounded off to the nearest whole number
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(4)DJIA Daily Futures contracts with Reset Date
Figure calculated by S&P Dow Jones Indices LLC on a trading day
whose opening time of the Market Trading Period of DJIA Daily Futurescontracts with Reset Date falls on the business day immediately
preceding the Reset Date as the price for final settlement of futurestransactions whose underlying asset is DJIA (limited to those listed on
the overseas financial instruments market opened by The Board of Tradeof the City of Chicago, Inc. and the final settlement of which occurs in
the month in which the Reset Date falls), rounded off to the nearest whole
number(5)Gold ETF Daily Futures contracts with Reset Date
Figure calculated by World Gold Trust Services LLC on a trading day
whose opening time of the Market Trading Period of Gold ETF Daily
Futures contracts with Reset Date falls on the business day immediately
preceding the Reset Date as the reference price of SPDR® Gold Shares,
rounded off to the nearest whole number(6)

WTI ETF Daily Futures contracts with Reset Date
Figure calculated by Simplex Asset Management Co., Ltd. on a trading
day whose opening time of the Market Trading Period of WTI ETF Daily
Futures contracts with Reset Date falls on the business day immediately
preceding the Reset Date as the reference price of Simplex WTI ETF,
rounded off to the nearest whole number(7)

NASDAQ-100 Daily Futures contracts with Reset Date
Figure calculated by Nasdaq, Inc. on a trading day whose opening timeof the Market Trading Period of NASDAQ-100 Daily Futures contracts
with Reset Date falls on the business day immediately preceding theReset Date as the price for final settlement of futures transactions whose
underlying asset is NASDAQ-100 (limited to those listed on the overseas
financial instruments market opened by Chicago Mercantile Exchange
and the final settlement of which occurs in the month in which the Reset152

Clearing Regulations

Date falls), rounded off to the nearest whole number(8)

Russell 2000 Daily Futures contracts with Reset Date
Figure calculated by FTSE International Limited on a trading day whose
opening time of the Market Trading Period of Russell 2000 Daily Futurescontracts with Reset Date falls on the business day immediately
preceding the Reset Date as the price for final settlement of futurestransactions whose underlying asset is Russell 2000 (limited to thoselisted on the overseas financial instruments market opened by Chicago
Mercantile Exchange and the final settlement of which occurs in themonth in which the Reset Date falls), rounded off to the first decimal
place

(9)

Silver ETF Daily Futures contracts with Reset Date
Figure calculated by WisdomTree Management Jersey Limited on a
trading day whose opening time of the Market Trading Period of Silver
ETF Daily Futures contracts with Reset Date falls on the business day
immediately preceding the Reset Date as the reference price of Wisdom
Tree Physical Silver Individual Securities, rounded off to the firstdecimal place(10)

Platinum ETF Daily Futures contracts with Reset Date
Figure calculated by WisdomTree Management Jersey Limited on a
trading day whose opening time of the Market Trading Period of
Platinum ETF Daily Futures contracts with Reset Date falls on thebusiness day immediately preceding the Reset Date as the reference priceof Wisdom Tree Physical Platinum Individual Securities, rounded off tothe nearest whole number

90-18-2.2
If the Exchange judges that it is not appropriate to determine the Reset
Price in accordance with Article 90-18-2.1 above, the Exchange shall determine the Reset
Price deemed appropriate by the Exchange from time to time.
90-18-2.3

The Exchange shall notify the Daily Futures Clearing Members engaging
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in clearing business relating to Equity Index Daily Futures contracts of the Reset Pricecalculated in accordance with Article 90-18-2.1 and Article 90-18-2.2 above.

Article 90-19. Equity Index Variation
An Equity Index variation shall be the sum of the following calculatory amounts
which have arisen with respect to the positions under the relevant Equity Index Daily
Futures contracts:(1)

Amount of initial Equity Index revaluation profit or loss

(2)

Cumulative amount of daily Equity Index revaluation profits or losses(3)

Amount of final Equity Index revaluation profit or loss

(4)

Cumulative amount of daily interest rate amounts(5)

Cumulative amount of dividend amounts

Article 90-20.

Methods for Settlement of Positions by Daily Futures Clearing
Member90-20.1
A Daily Futures Clearing Member shall settle the position under an
Equity Index Daily Futures transaction arising in its own name at the bid or offer submitted
by it by either of the following methods whichever is applicable:(1)

Filing of offsetting notification (meaning that, where the Equity Index
Daily Futures Clearing Member simultaneously holds both a shortposition and a long position under one same kind of Equity Index Daily
Futures contracts, the filing with the Exchange by which the said shortposition and the long position are reduced by the same volume)(2)

Execution of offsetting transaction (meaning that, where the Equity
Index Daily Futures Clearing Member under any given kind of Equity
Index Daily Futures contract holds a short position, a corresponding
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purchase contract of the same kind is executed, or where it holds a longposition, a corresponding sale contract of the same kind is executed, sothat the short position or the long position, as the case may be, shall be
immediately reduced, by the volume of the short position or thecorresponding purchase contract whichever is smaller, or of the longposition or the sale contract whichever is smaller, as the case may be.)
(3)

Reset

90-20.2
When an offsetting notification is filed, the designated short position andlong position held at the relevant Daily Futures Clearing Member’s house account and/or
at each of its Customer’s accounts shall be reduced individually, pursuant to the details of
the notification on the trading day on which the offsetting notification is filed.
90-20.3
In the case of an offsetting transaction, when a Daily Futures Clearing
Member enters into another Equity Index Daily Futures transaction specified in thefollowing items, unless otherwise prescribed by the Exchange, the said transaction shallbe deemed to be a transaction of Repurchase or Resale for the said short positions or longpositions, so that such short position or long position, as the case may be, will be closedout by the Repurchase or the Resale volume being applied to the existing short or longpositions on first-in-first-out basis:(1)

Where the Daily Futures Clearing Member holds a short position underan Equity Index Daily Futures transaction for its house account, a newlyentered purchase contract for an Equity Index Daily Futures transaction
for its house account;(2)

Where the Daily Futures Clearing Member holds a long position underan Equity Index Daily Futures transaction for its house account, a newlyentered sale contract for an Equity Index Daily Futures transaction for its
house account;(3)

Where the Daily Futures Clearing Member holds a short position underan Equity Index Daily Futures transaction based on an order of a
Customer, a newly-entered purchase contract for an Equity Index Daily
Futures transaction for the account of such Customer based on the orderof such Customer; or
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(4)Where the Daily Futures Clearing Member holds a long position underan Equity Index Daily Futures transaction based on an order of a
Customer, a newly-entered sale contract for an Equity Index Daily
Futures transaction for the account of such Customer based on the orderof such Customer.

90-20.4
The method for the settlement of positions shall be selected by each
Daily Futures Clearing Member from among those specified in each Item of Article 9020.1 above with respect to its house account and each of its Customer account individually.
Provided, however, that any position held by a Daily Futures Clearing Member as aconsequence of an Equity Index Daily Futures contract that has been executed based on
the obligation of the Equity Index Market Maker (meaning the “Equity Index Market
Maker” defined in Article 2.1(4) of the Equity Index Special Provisions, whichinterpretation shall equally apply in Article 90-21.4) to quote a MM bid or offer may besettled by way of execution of offsetting transaction or Reset.

Article 90-21.

Methods for Settlement of Positions by Non-Clearing Member
under Equity Index Daily Futures Contracts

90-21.1
A Non-Clearing Member acting in such capacity in an Equity Index
Daily Futures contract (hereinafter called “Equity Index Daily Futures Non-Clearing
Member”) shall settle the position under an Equity Index Daily Futures transaction whichis executed in the name of the Designated Clearing Member acting on its behalf thereunderat the bid or offer submitted by such Equity Index Daily Futures Non-Clearing Member,by either of the following methods whichever is applicable:(1)

Filing of offsetting notification(2)

Execution of offsetting transaction

(3)

Reset

90-21.2
When an offsetting notification is filed, the designated short position andlong position held at the relevant Equity Index Daily Futures Non-Clearing Member’shouse account and/or at each of its Customer’s accounts shall be reduced individually,
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pursuant to the details of the notification on the trading day on which the offsetting
notification is filed.
90-21.3
In the case of an offsetting transaction, when an Equity Index Daily
Futures Non-Clearing Member enters into another Equity Index Daily Futures transaction
specified in the following items, unless otherwise prescribed by the Exchange, the saidtransaction shall be deemed to be a transaction of Repurchase or Resale for the said shortpositions or long positions, so that such short position or long position, as the case may be,
will be closed out by the Repurchase or the Resale volume being applied to the existing
short or long positions on first-in-first-out basis.
(1)

Where the Equity Index Daily Futures Non-Clearing Member holds a
short position under an Equity Index Daily Futures transaction for its
house account, a newly-entered purchase contract for an Equity Index
Daily Futures transaction for its house account;(2)

Where the Equity Index Daily Futures Non-Clearing Member holds along position under an Equity Index Daily Futures transaction for its
house account, a newly-entered sale contract for an Equity Index Daily
Futures transaction for its house account;(3)

Where the Equity Index Daily Futures Non-Clearing Member holds a
short position under an Equity Index Daily Futures transaction based onan order of a Customer, a newly-entered purchase contract for an Equity
Index Daily Futures transaction for the account of such Customer basedon the order of such Customer; or(4)

Where the Equity Index Daily Futures Non-Clearing Member holds along position under an Equity Index Daily Futures transaction based onan order of a Customer, a newly-entered sale contract for an Equity Index
Daily Futures transaction for the account of such Customer based on theorder of such Customer.

90-21.4
The method for the settlement of position shall be selected by each
Equity Index Daily Futures Non-Clearing Member from among those specified in each
Item of Article 90-21.1 above with respect to its house account and each of its Customer
account individually. Provided, however, that any position held by an Equity Index Daily
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Futures Non-Clearing Member as a consequence of an Equity Index Daily Futures contractthat has been executed based on the Equity Index Market Maker’s obligation to quote an
MM bid or offer may be settled by way of execution of offsetting transaction or Reset.

Article 90-22.

Filing of Offsetting Notification Concerning Equity Index
Daily Futures Contracts90-22.1

An offsetting of positions through filing of notification of offsetting

notification may be made during the period separately designated by the Exchange, only
if the Daily Futures Clearing Member holds both the short position and long position to besettled simultaneously.
90-22.2
A Daily Futures Clearing Member who wishes to reduce any shortposition(s) and long position(s) held by it through filing of offsetting notification shall filethat notification with the Exchange stating the following details with respect to its houseaccount and/or its Customer’s account(s) individually:(1)

Statement that it will reduce both the short position(s) and the longposition(s) through filing of that offsetting notification(2)

If it has short positions under more than one (1) sale contract or longpositions under more than one (1) purchase contract, identification of thesale contract in respect of the short position(s) to be reduced or thepurchase contract in respect of the long position(s) to be reduced(3)

Amount by which it wishes to reduce the short position(s) and the longposition(s)90-22.3
An Equity Index Daily Futures Non-Clearing Member who wishes toreduce any short position(s) and long position(s) held by it through filing of offsetting
notification shall file that notification with the Exchange stating the following details withrespect to its house account and/or its Customer’s account(s) individually on behalf of the
Designated Clearing Member, provided that the Designated Clearing Member is notprevented from filing such notification by itself:(1)

Statement that it will reduce both the short position(s) and the long
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position(s) through filing of that offsetting notification(2)

If it has short positions under more than one (1) sale contract or longpositions under more than one (1) purchase contract, identification of thesale contract in respect of the short position(s) to be reduced or thepurchase contract in respect of the long position(s) to be reduced(3)

Amount by which it wishes to reduce the short position(s) and the longposition(s)Article 90-23.

Payment and Receipt of Money with respect to Equity Index
Daily Futures Contracts

Whenever a Daily Futures Clearing Member shall pay to or receive from the
Exchange any money with respect to an Equity Index Daily Futures contract, it shall do sothrough its account established at the Designated Service Office of the settlement bank for
an Equity Index Daily Futures transaction by the date and time prescribed by the Equity
Index Margin Regulations and the Equity Index Exchange Margin Settlement Regulations.

Article 90-24.

Detailed Rules for Financial Instruments Obligation
Assumption Business relating to Equity Index Daily Futures
Transactions

In addition to the provisions of these Regulations, any matters necessary toprescribe in connection with the manner of conduct of financial instruments obligation
assumption business relating to Equity Index Daily Futures transactions and any and allbusinesses pertaining thereto shall be separately prescribed by the Exchange.

CHAPTER XIII-III.
SPECIAL PROVISIONS FOR FX CLEARING FUTURESCONTRACTS
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Article 90-25. FX Clearing Settlement Price90-25.1
With respect to an FX Clearing Futures contract, the Exchange shall set
the price as an indicative price of fixed Mark-to-Market Variation defined in Article 9026.2 (hereinafter referred to as the “FX Clearing Settlement Price”) for each type of FX
Clearing Futures contracts after the close of the Market Trading Period of each trading day(meaning the trading day specified in Article 2(6) of the FX Clearing Special Provisions,which interpretation shall equally apply hereinafter in this Chapter XIII-III) and notify thesame to FX Clearing Futures Clearing Members.
90-25.2
An FX Clearing Settlement Price specified in Article 90-25.1 above shallbe obtained by reference to the market prices of the foreign exchange market or theexchange financial instruments market for the FX Daily Futures contracts during suchspecific period of time before the close of the Market Trading Period for the relevant
trading day as may be determined by the Exchange; provided, however, that if the
Exchange judges any FX Clearing Settlement Price so calculated is inappropriate, theExchange may adopt a price deemed appropriate by it as the FX Clearing Settlement Price.

Article 90-26. Methods for Settlement of FX Clearing Futures Transaction
90-26.1
A short position or a long position under an FX Clearing Futurestransaction shall be settled in the manner that, by Collective Offsetting (meaning theCollective Offsetting specified in Article 90-30.2 hereof, which interpretation shall equally
apply hereinafter) at the close of the Market Trading Period of each trading day, the FX
Clearing variation (meaning the FX Clearing variation specified in Article 90-29.1 hereof,
which interpretation shall equally apply hereinafter) of all positions existing at the closeof the Market Trading Period subject to the Collective Offsetting is transferred to the FX
Clearing Exchange Margin (hereinafter referred to as the “FX Clearing cash settlement”).
90-26.2
If a difference arises between the FX Clearing Settlement Price on the
trading day for the short position or long position for each type of FX Clearing Futurestransactions subject to the Collective Offsetting and the price set forth in each Item below
as a consequence of such Collective Offsetting, a fixed Mark-to-Market Variation shallarise at the positive or negative calculatory amount obtained based on that difference:160

Clearing Regulations

(1)Position of sale contract or purchase contract newly executed on the
trading day: Contract price of such position(2)

Position that has arisen from rollover (meaning the rollover specified in
Article 90-27 hereof) at the close of the Market Trading Period of the
trading day immediately preceding such trading day: FX Clearing
Settlement Price on the trading day immediately preceding such tradingday

90-26.3
Among the fixed Mark-to-Market Variations, the positive or negative
calculatory amount obtained based on the difference between the FX Clearing Settlement
Price on such trading day and the contract price specified in Article 90-26.2 (1) shall bereferred to as an “initial Mark-to-Market Variation” and the positive or negative
calculatory amount obtained based on the difference between the FX Clearing Settlement
Price on the trading day immediately preceding such trading day and the contract pricespecified in Article 90-26.2 (2) shall be referred to as a “daily Mark-to-Market Variation”.

Article 90-27. Rollover
90-27.1
With respect to a short position or long position subject to the Collective
Offsetting at the close of the Market Trading Period of each trading day, if a difference
arises in comparison of the respective total sum of the short position or long position ofeach type of FX Clearing Futures transactions (the total sum of the short position shall bereferred to as the “Sum of Short Position” and the total sum of the long position shall bereferred to as the “Sum of Long Position” hereinafter in this Chapter XIII-III), at the closeof such Market Trading Period, and concurrently with the discharge of the positions by theCollective Offsetting, a position that contains the conditions set forth in each Item below
shall newly arise between the Exchange and the FX Clearing Futures Clearing Member
who held the discharged position for each type of the FX Clearing Futures transactions
with respect to which such difference arises.
(1)

Price:FX Clearing Settlement Price on such trading day(2)

Contract day: Immediately following trading day
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(3)Short or long: If, before the Collective Offsetting, the Sum of Short
Position is larger than the Sum of Long Position, short position and, if
the Sum of Long Position is larger than the Sum of Short Position, longposition(4)

Amount: Amount equivalent to the difference between the Sum of
Short Position and the Sum of Long Position

90-27.2

The discharge and arising of positions under Article 90-27.1 above shallbe called a “rollover” in this Chapter XIII-III.

Article 90-28. Swap Point
90-28.1
If a new position arises under an FX Clearing Futures transaction byrollover, a positive or negative calculatory amount obtained in the manner separately
prescribed by the Exchange (hereinafter called “swap point” in this Chapter XIII) shallarise for the purpose of reconciliation of, among other things, the difference between theapplicable interest rate of the denomination currencies of the positions newly arisen
according to the number of days to the final settlement date of the FX Clearing cash
settlement of the discharged positions and the positions newly arisen and the type of the
FX Clearing Futures transaction in question.
90-28.2
The final settlement date of the swap point that has arisen under Article
90-28.1 above shall be the final settlement date of the FX Clearing cash settlement of thepositions discharged by rollover.

Article 90-29. FX Clearing variation
90-29.1
The FX Clearing variation subject to FX Clearing cash settlement
specified in Article 90-26.1 means the total sum of the calculatory amounts set forth
below that have arisen to the positions under FX Clearing Futures contracts:(1)

Amount of fixed Mark-to-Market Variation, and(2)

Amount of swap point
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90-29.2
With respect to the amounts set forth in Article 90-29.1 (1) and (2) of
Cross Currency Pairs transactions (meaning the Cross Currency Pairs transactions
specified in Article 2 (11) of the FX Clearing Special Provisions; the same interpretation
shall apply hereinafter in this Article 90-29.2), those calculated in the Term Currency(meaning the Term Currency specified in Article 2 (13) of the FX Clearing Special
Provisions; the same interpretation shall apply hereinafter in this Article 90-29.2) of such
Cross Currency Pairs transaction shall be converted into the currency of Japanese Yen foreach trading day by the FX Clearing Settlement Price of Yen Currency Pairs transaction ofsuch Term Currency on such trading day.

Article 90-30. Methods for Settlement of Positions
90-30.1
A position held by an FX Clearing Futures Clearing Member under an
FX Clearing Futures contract shall be settled by Collective Offsetting.
90-30.2

Collective Offsetting means the method to decrease the positions set

forth in each Item below under the same type of FX Clearing Futures contracts held at theclose of the Market Trading Period of a certain trading day in the manner specified in eachsuch Item:(1)

Each position under the sale contract and purchase contract newly
executed on the trading day: A repurchase transaction in the sameamount with the short position and a resale transaction in the sameamount with the long position shall be executed automatically at the FX
Clearing Settlement Price of the trading day respectively at the close of
the Market Trading Period of the trading day, whereby all amounts ofsuch short positions and long positions shall be reduced.

(2)

Position that has arisen by rollover at the close of the Market Trading
Period of the immediately preceding trading day: A repurchasetransaction in the same amount with the short position and a resaletransaction in the same amount with the long position shall be executed
automatically at the FX Clearing Settlement Price of the trading day
respectively at the close of the Market Trading Period of the trading day,whereby all amounts of such short positions and long positions shall be
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reduced.

Article 90-31.

Payment and Receipt of Money with respect to FX Daily
Futures Contracts

Whenever an FX Clearing Futures Clearing Member shall pay to or receive fromthe Exchange any money with respect to an FX Clearing Futures contract, it shall do sothrough its account established at the Designated Service Office of the settlement bank for
an FX Clearing Futures transaction by the date and time prescribed under the FX Clearing
Margin Regulations and the FX Clearing Exchange Margin Settlement Regulations.

Article 90-32.

Detailed Rules for Financial Instruments Obligation
Assumption Business relating to FX Clearing Futures
Transactions

In addition to the provisions of these Regulations, any matters necessary toprescribe in connection with the manner of conduct of financial instruments obligation
assumption business relating to FX Clearing Futures transactions and any and allbusinesses pertaining thereto shall be separately prescribed by the Exchange.

CHAPTER XIII-IV.
SPECIAL PROVISIONS FOR THREE-MONTH TONA FUTURESCONTRACTS

Section 1.

Payment of Option Premium

Article 99-33. Payment of Option Premium
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99-33.1 A Clearing Member shall, after it executes a purchase contract for option on
Three-month Euroyen futures (excluding Three-month TONA futures options contracts
which were discharged as a result of give-up; hereinafter called the “purchase contract” inthis Chapter XIII-IV except as referred to in Article 90-45 hereof) in its own name, pay
the consideration for the acquisition of an option on Three-month TONA futures(hereinafter called the “option premium” in this Chapter XIII-IV) to the Exchange’s bankaccount established at one of the Settlement Banks, not later than the time separately
designated by the Exchange of the business day (but not a Japanese bank holiday; if suchbusiness day is a Japanese bank holiday, the business day immediately following such day
which is a Japanese banking day; the same business-day convention shall apply
hereinbelow) immediately following the business day on which there occurs the day
session of the trading day on which such purchase contract is executed, in the mannerprescribed by the Exchange.
99-33.2 A Non-Clearing Member shall, after a purchase contract is executed as a
Securities, etc. Clearing-Brokering Contract at the bid or offer submitted by it, pay the
related option premium to its Designated Clearing Member, not later than the time
separately designated by the Exchange of the business day (or, with respect to a NonClearing Member who is also Japanese Yen Interest Rate Remote Trading Member, thesecond business day in principle) immediately following the business day on which there
occurs the day session of the trading day on which such purchase contract is executed.
99-33.3 When a sale contract (excluding Three-month TONA futures options contracts
which were discharged as a result of give-up; hereinafter called the “sale contract” in this
Chapter XIII-IV except as referred to in Article 90-45 hereof) has been executed in thename of a Clearing Member, the Exchange shall pay the related option premium to theClearing Member’s bank account established at one of the Settlement Banks, not later than
the time separately designated by the Exchange of the business day immediately following
the business day on which there occurs the day session of the trading day on which such
sale contract is executed, in the manner prescribed by the Exchange.
99-33.4 When a sale contract as a Securities, etc. Clearing-Brokering Contract has been
executed at the bid or offer submitted by a Non-Clearing Member, its Designated Clearing
Member shall pay the related option premium to the Non-Clearing Member, not later than
the time separately designated by the Exchange of the business day (or, with respect to a
Non-Clearing Member who is also Japanese Yen Interest Rate Remote Trading Member,the second business day in principle) immediately following the business day on which
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there occurs the day session of the trading day on which such sale contract is executed.

Article 90-34. Amount to be Paid or Received
The amount to be paid or received per trading unit pursuant to Articles 90-33.1
through 90-33.4 above shall be calculated in accordance with the following formula:¥ 2,500 x (contract price / 0.01)

Article 90-35. Total Receivable Amount and Total Payable Amount90-35.1 The amount which each Clearing Member shall pay to or receive from the
Exchange pursuant to Articles 90-33.1 and 90-33.3 hereof shall be the net difference
between the respective aggregate amounts which such Clearing Member is to pay andthose which it is to receive as the option premiums which are payable or receivable withrespect to such Clearing Member.
90-35.2 The provisions of Article 90-35.1 above shall apply mutatis mutandis with respect
to the payment of option premiums between a Non-Clearing Member and its Designated
Clearing Member pursuant to Articles 90-33.2 and 90-33.4 hereof, respectively.

Article 90-36. Regulations relating to Payment of Option Premium
In addition to the provisions of these Regulations, any matters necessary withrespect to the payment of the option premium shall be prescribed by the Exchange.

Section 2.

Offsetting Transactions

Article 90-37. Offsetting Transactions
90-37.1 In the event that a Clearing Member makes a purchase contract (hereinafter called
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“Repurchase” in this Chapter XIII-IV) in order to close out a short position arising from a
Three-month TONA futures option contracts executed in its own name and at the bid oroffer submitted by itself, or makes a sale contract (hereinafter called “Resale” in this
Chapter XIII-IV) in order to close out a long position arising from a Three-month TONA
futures option contracts executed in its own name and at the bid or offer submitted byitself, the Clearing Member shall notify the Exchange of the classification of Resale orRepurchase and its volume.
90-37.2 Upon receipt of the notification of Resale or Repurchase set forth in Article 9037.1 above, the Exchange shall decrease the concerned Clearing Member’s short position
or long position by the volume of Resale or Repurchase advised in the said notification,
which volume of decrease will be finally settled.
90-37.3 Notwithstanding the provisions of Article 90-37.2 above, the Exchange may at its
discretion adjust the volume advised in the notification of Resale or Repurchase, if the
Exchange deems that the volume so advised may be inappropriate in the light of the criteria
separately prescribed by the Exchange, for example, the criteria whether the advised
volume exceeds the volume of the Three-month TONA futures option contracts executed
within the concerned trading day.

Article 90-38. Offsetting Transactions by Non-Clearing Members
90-38.1 If a Non-Clearing Member makes a Repurchase or a Resale in order to close out
its Designated Clearing Member’s short position or long position arising from its
Securities, etc. Clearing-Brokering Contracts (hereinafter called the “Clearing-undertaken
Short Position” and the “Clearing-undertaken Long Position” respectively in this Chapter
XIII-IV), the Non-Clearing Member on behalf of its Designated Clearing Member shallnotify the Exchange of the classification of Resale or Repurchase and its volume; provided,
however, that the foregoing shall not preclude the Designated Clearing Member fromnotifying the Exchange of the same by itself.
90-38.2 Upon receipt of the notification of Resale or Repurchase set forth in Article 9038.1 above, the Exchange shall decrease the concerned Designated Clearing Member’s
Clearing-undertaken Short Position or Clearing-undertaken Long Position as settled by thevolume of Repurchase or Resale advised in the said notification.
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90-38.3 Notwithstanding the provisions of Article 90-38.2 above, the Exchange may at its
discretion adjust the volume advised in the notification of Resale or Repurchase, if the
Exchange deems that the volume so advised may be inappropriate in the light of the criteria
separately prescribed by the Exchange, for example, the criteria whether the advised
volume exceeds the volume of the Three-month TONA futures option contracts executed
within the concerned trading day.
90-38.4 If a Non-Clearing Member makes the notification of Resale or Repurchase set
forth in Article 90-38.1 hereof, the Non-Clearing Member shall inform its Designated
Clearing Member of the effect of such notification without delay.

Article 90-39. Particulars for Offsetting Transactions
In addition to the provisions of these Regulations, any matters necessary toprescribe in connection with the manner of filing of offsetting notifications, the period forfiling thereof and the procedures for correction of the contents of the notification shall beseparately prescribed by the Exchange.

Section 3.

Option Exercise

Article 90-40. Option Exercisable Period
90-40.1 A Clearing Member or a Non-Clearing Member may notify the Exchange of
exercising an option on Three-month TONA futures in accordance with Article 90-41
below, on any business day which falls during the period from and including the business
day on which the day session of the first trading day of each contract month occurs to andincluding the business day (hereinafter called the “option expiration date” in this Chapter
XIII-IV) on which the day session of the last trading day of the same contract month occurs(hereinafter called the “option exercisable period” in this Chapter XIII-IV).
90-40.2 Notwithstanding the provisions of Article 90-40.1 above, the Exchange may,whenever it deems necessary, modify the option exercisable period for all or a part of any
specific series of option.
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Article 90-41. Notification of Option Exercise
90-41.1 In order to exercise options on Three-month TONA futures, a Clearing Memberor Non-Clearing Member shall notify the Exchange, not later than the time separately
designated by the Exchange (hereinafter called the “exercise notification deadline” in this
Chapter XIII-IV), of the volume of trading unit for each series on which it intends toexercise options, which volume being indicated broken down by whether for a customer
account or for a house account, with respect to the long positions held by the Clearing
Member (or in the case of a Non-Clearing Member, the Clearing-undertaken Long
Positions held by its Designated Clearing Member; the same interpretation shall apply
hereinbelow in this Article 90-41.1) at the close of the day session of the day on whichsuch member intends to exercise the options (hereinafter called the “option exercise date”
in this Chapter XIII-IV); provided, however, that the foregoing does not preclude the
Designated Clearing Member from notifying the Exchange to such effect on behalf of the
Non-Clearing Member. Notwithstanding the foregoing, if the volume of any series of
any whether for a customer account or for a house account notified of by the Clearing
Member or Non-Clearing Member as the volume subject to option exercise exceeds thevolume of the long positions held by such member with respect to such series at suchwhether for a customer account or for a house account at the close of the day session forthe option exercise date, such member shall be deemed notified of its intention to exercise
options by the volume of such long positions held by it.
90-41.2 When a Non-Clearing Member makes the notification of exercise of option, such
Non-Clearing Member shall without delay inform its Designated Clearing Member of such
effect.
90-41.3 The Exchange may halt the option exercise of all or a part of the series in themanner prescribed by the Exchange, should the trading in Three-month TONA futures or
options on Three-month TONA futures be suspended, should the Exchange System fail tooperate, or should there be any other reasons which would cause the Exchange to deem it
inappropriate to allow options to be exercised.

Article 90-42. Automatic Option Exercise
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90-42.1 Notwithstanding the provisions of Article 90-41.1 above, a Clearing Member or
Non-Clearing Member shall be deemed to have notified the Exchange of exercising a put
option on Three-month TONA futures of which the strike price exceeds the final settlement
figure for the relevant underlying futures, or a call option on Three-month TONA futuresof which the strike price is lower than the final settlement figure for the relevant underlying
futures, even when such member did not notify the Exchange of exercising such option by
the exercise notification deadline after the closing of the day session on the option
expiration date, except where such member notifies the Exchange of not exercising such
option by the time separately designated by the Exchange, in which case the Designated
Clearing Member shall not be precluded from notifying the Exchange to such effect onbehalf of the Non-Clearing Member concerned.
90-42.2 When a Non-Clearing Member makes a notification of not exercising the said
option, such Non-Clearing Member shall without delay inform its Designated Clearing
Member to such effect.
90-42.3 The Exchange may elect not to apply the provisions of Article 90-42.1 hereof withrespect to all or part of the series in the manner prescribed by the Exchange, should the
trading in Three-month TONA futures or Three-month TONA futures option contracts besuspended, should the Exchange System fail to operate, or should there be any otherreasons which would cause the Exchange to deem it inappropriate to allow options to be
exercised.

Article 90-43. Assignment
90-43.1 When a Clearing Member or Non-Clearing Member notifies or is deemed to havenotified the Exchange of the option exercise under the provisions of Article 90-41.1 or 9042.1 above, the Exchange shall, in the manner separately prescribed by the Exchange,
select the short positions and/or the Clearing-undertaken Short Positions with the sameseries and in the same volume of trading units as the long positions so notified for the
exercise, from among those (excluding the Clearing-undertaken Short Positions) held byClearing Members or the Non-Clearing Members on behalf of whom the Clearingundertaken Short Positions are held by its Designated Clearing Member, at the close of the
day session of the option exercise date. This process shall be hereinafter called“assignment” in this Chapter XIII-IV.
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90-43.2 Upon making an assignment, the Exchange shall notify the relevant Clearing
Member or Non-Clearing Member of the details of such assignment without delay,
specifying whether the assignment is for its own account or for the accounts other than the
Trading Member’s house account (in the case of a Clearing Member, excluding its
Clearing-undertaken Short Positions).
90-43.3 When a Non-Clearing Member receives a notification of assignment set forth in
Article 90-43.2 above, such Non-Clearing Member shall notify its Designated Clearing
Member of the details of such assignment without delay.

Article 90-44. Decrease in Positions resulting from Option Exercise
90-44.1 When a Clearing Member notifies the Exchange of the exercise of options on any
business day except for the relevant option expiration date under the provisions of Article
90-41.1 hereof, the Exchange shall decrease the long positions held by such Clearing
Member at the close of the day session of the relevant option exercise date, by the volumeof trading units of the options so notified for the option exercise, as at the time of therelevant option exercise date separately designated by the Exchange.
90-44.2 When a Non-Clearing Member notifies the Exchange of the exercise of options
on any business day except for the relevant option expiration date under the provisions ofArticle 90-41.1 hereof, the Exchange shall decrease the Clearing-undertaken Long
Positions held by the Designated Clearing Member of such Non-Clearing Member at theclose of the day session of the relevant option exercise date, by the volume of trading unitsof the options so notified for the option exercise, as at the time of the relevant option
exercise date separately designated by the Exchange.
90-44.3 When the Exchange makes an assignment to a Clearing Member on any business
day except for the relevant option expiration date under the provisions of Article 90-43.1
above, the Exchange shall decrease the short positions held by such Clearing Member at
the close of the day session of the relevant option exercise date, by the volume of trading
units relating to such assignment, as at the time of the relevant option exercise dateseparately designated by the Exchange.
90-44.4 When the Exchange makes an assignment to a Non-Clearing Member on any
business day except for the relevant option expiration date under the provisions of Article
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90-43.1 above, the Exchange shall decrease the Clearing-undertaken Short Positions heldby the Designated Clearing Member of such Non-Clearing Member at the close of the day
session of the relevant option exercise date, by the volume of trading units relating to suchassignment, as at the time of the relevant option exercise date separately designated by the
Exchange.
90-44.5 The provisions of Articles 90-44.1 through 90-44.4 above shall apply mutatis
mutandis in cases where a Clearing Member or Non-Clearing Member notifies the
Exchange of the exercise of options under the provisions of Article 90-41.1 hereof, or a
Clearing Member or Non-Clearing Member is deemed to have notified the Exchange ofthe exercise of options under the provisions of Article 90-42.1 hereof, or a Clearing
Member or Non-Clearing Member receives the assignment under the provisions of Article
90-43.1 above, in each case on the option expiration date, with the substitution of the words“the relevant option exercise date” used in Articles 90-44.1 through 90-44.4 above for thewords “the relevant option expiration date”.

Article 90-45.

Three-month TONA Futures Contracts resulting from Option
Exercise and Assignment

90-45.1 In the event that on any business day except for the relevant option expiration
date, a Clearing Member (hereinafter called the “Exercising Clearing Member” in this
Chapter XIII-IV) notifies the Exchange of the exercise of a put option on Three-month
TONA futures under the provisions of Article 90-41.1 hereof, or a Clearing Member(hereinafter called the “Assigned Clearing Member” in this Chapter XIII-IV) receives
assignment with respect to a put option on Three-month TONA futures under theprovisions of Article 90-43.1 hereof, the Exercising Clearing Member shall be deemed tohave executed with the Exchange a sale contract of the underlying futures or the Assigned
Clearing Member shall be deemed to have executed with the Exchange a purchase contractof the underlying futures, with the contract figure equal to the relevant strike price, as at
the time of the relevant option exercise date separately designated by the Exchange.
90-45.2 In the event that on any business day except for the relevant option expiration
date, a Non-Clearing Member (hereinafter called the “Exercising Non-Clearing Member”
in this Chapter XIII-IV) notifies the Exchange of the exercise of a put option on Threemonth TONA futures under the provisions of Article 90-41.1 hereof, or a Non-Clearing
Member (the “Assigned Non-Clearing Member” in this Chapter XIII-IV) receives
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assignment with respect to a put option on Three-month TONA futures under theprovisions of Article 90-43.1 hereof, the Designated Clearing Member of the Exercising
Non-Clearing Member shall be deemed to have executed with the Exchange a sale contractof the underlying futures as a Securities, etc. Clearing-Brokering Contract or the
Designated Clearing Member of the Assigned Non-Clearing Member shall be deemed tohave executed with the Exchange a purchase contract of the underlying futures as a
Securities, etc. Clearing-Brokering Contract, with the contract figure equal to the relevant
strike price, as at the time of the relevant option exercise date separately designated by the
Exchange.
90-45.3 In the event that on any business day except for the relevant option expiration
date, an Exercising Clearing Member notifies the Exchange of the exercise of a call option
on Three-month TONA futures under the provisions of Article 90-41.1 hereof, or an
Assigned Clearing Member receives assignment with respect to a call option on Threemonth TONA futures under the provisions of Article 90-43.1 hereof, the Exercising
Clearing Member shall be deemed to have executed with the Exchange a purchase contractof the underlying futures or the Assigned Clearing Member shall be deemed to haveexecuted with the Exchange a sale contract of the underlying futures, with the contract
figure equal to the relevant strike price, as at the time of the relevant option exercise dateseparately designated by the Exchange.
90-45.4 In the event that on any business day except for the relevant option expiration
date, an Exercising Non-Clearing Member notifies the Exchange of the exercise of a call
option on Three-month TONA futures under the provisions of Article 90-41.1 hereof, oran Assigned Non-Clearing Member receives assignment with respect to a call option on
Three-month TONA futures under the provisions of Article 90-43.1 hereof, the Designated
Clearing Member of the Exercising Non-Clearing Member shall be deemed to haveexecuted with the Exchange a purchase contract of the underlying futures as a Securities,
etc. Clearing-Brokering Contract or the Designated Clearing Member of the Assigned
Non-Clearing Member shall be deemed to have executed with the Exchange a sale contractof the underlying futures as a Securities, etc. Clearing-Brokering Contract, with thecontract figure equal to the relevant strike price, as at the time of the relevant option
exercise date separately designated by the Exchange.
90-45.5 The provisions of Articles 90-45.1 through 90-45.4 above shall apply mutatis
mutandis in cases where a Clearing Member or Non-Clearing Member notifies the
Exchange of the exercise of options under the provisions of Article 90-41.1 hereof, or a
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Clearing Member or Non-Clearing Member is deemed to have notified the Exchange ofthe exercise of options under the provisions of Article 90-42.1 hereof, or a Clearing
Member or Non-Clearing Member receives the assignment under the provisions of Article
90-43.1 hereof, in each case on the relevant option expiration date, with the substitution of
the words “the relevant option exercise date” used in Articles 90-45.1 through 90-45.4
above for the words “the relevant option expiration date”.
90-45.6 A Three-month TONA futures contract resulting from the option exercise or theassignment shall not be subject to the provisions of Article 18.1 of the Trading Regulations.
90-45.7 When, as a result of the option exercise or the assignment, a Three-month TONA
futures contract is deemed to have been executed in the name of the Designated Clearing
Member of a Non-Clearing Member, the Exchange on behalf of the Non-Clearing Member
shall notify its Designated Clearing Member of the details of the Three-month TONA
futures contract that may be necessary to clear the same as a Securities, etc. ClearingBrokering Contract, after the close of the day session on the day on which such Threemonth TONA futures contract is deemed to have been executed.

Section 4.

Daily Settlement Price

Article 90-46. Determination of Daily Settlement Price
90-46.1 After the close of the day session of each trading day, the Exchange shalldetermine a price for each series (hereinafter called the “Daily Settlement Price” in this
Article) upon the basis of which the Exchange Margin, Non-Clearing Member Margin andCustomer Margin applicable for such trading day shall be calculated, and notify the
Clearing Members and the Non-Clearing Members of such Daily Settlement Price.
90-46.2 The Daily Settlement Price for each series prescribed in Article 90-46.1 above
shall be the figure calculated by the Exchange as to be a theoretical price in the mannerseparately prescribed by the Exchange.
90-46.3 Notwithstanding the provisions of Article 90-46.2 above, the Daily Settlement
Price for each series of a put option on Three-month TONA futures on the last trading day
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shall be the strike price for such series less the daily settlement figure on the last trading
day for the underlying futures of such series, and the Daily Settlement Price for each seriesof a call option on Three-month TONA futures on the last trading day shall be the daily
settlement figure on the last trading day for the underlying futures of such series less thestrike price for such series; provided, however, that should the figure so calculated fall
below zero (0) in either case, the Daily Settlement Price for the relevant series on the last
trading day shall be zero (0).

CHAPTER XIV.
POSITION TRANSFER

Article 91.

Position Transfer

91.1“Position transfer” means a transfer of an unsettled market derivatives transactionthat has been executed at the bid or offer by a Clearing Member or a Non-Clearing Member
or an unsettled L-T Link Position that has been caused to arise for a Clearing Member’s or
Non-Clearing Member’s account (hereinafter collectively called the “Unsettled Contract”)
in the Exchange Market to any other Clearing Member (limited to those who are FX Daily
Futures Trading Members in the case of Unsettled Contracts of FX Daily Futurestransactions and limited to those who are Equity Index Daily Futures Trading Members in
the case of Unsettled Contracts of Equity Index Daily Futures transactions) or NonClearing Member (limited to those who are FX Daily Futures Trading Members in the caseof Unsettled Contracts of FX Daily Futures transactions and limited to those who are
Equity Index Daily Futures Trading Members, etc. in the case of Unsettled Contracts ofEquity Index Daily Futures transactions) holding the clearing membership for that
Unsettled Contract.
91.2
The position transfer under FX Daily Futures contracts or Equity Index Daily
Futures contracts shall be available only in any of the following cases:(1)

When an FX Daily Futures intermediate broker newly acquires an FX
Daily Futures Trading Membership, or an Equity Index Daily Futures
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Clearing Regulationsintermediate broker newly acquires an Equity Index Daily Futures
Trading Membership or an Equity Index Daily Futures Remote Trading
Membership;(2)

When an FX Daily Futures intermediate broker changes an FX Daily
Futures Trading Member to whom it entrusts FX Daily Futures contracts
that it accepts to provide for brokerage service therefor, or an Equity
Index Daily Futures intermediate broker changes an Equity Index Daily
Futures Trading Member, etc. to whom it entrusts Equity Index Daily
Futures contracts that it accepts to provide for brokerage service therefor;or(3)

Other than the events set forth in the preceding Items, when deemednecessary by the Exchange.

91.3
With respect to FX Daily Futures contracts or Equity Index Daily Futurescontracts, if Unsettled Contracts based on orders of Customers are caused to be transferredby position transfer, each Customer shall be caused to assume all Unsettled Contracts
based on its own orders.
91.4
With respect to FX Daily Futures contracts or Equity Index Daily Futurescontracts, if Unsettled Contracts based on brokerage of entrustment of an FX Daily Futuresintermediate broker or an Equity Index Daily Futures intermediate broker are caused to betransferred by position transfer, those with respect to which an FX Daily Futures offeror
or an Equity Index Daily Futures offeror entrusts brokerage of entrustment of positiontransfer to the FX Daily Futures intermediate broker or the Equity Index Daily Futuresintermediate broker shall be subject to the position transfer.
91.5
The position transfer prescribed in this Chapter XIV shall not be available topositions under FX Clearing Futures contracts.

Article 92.

Position Transfer Fee

92.1
A Clearing Member or a Non-Clearing Member who assigns Unsettled Contracts
by means of the position transfer (hereinafter called the “Position Transferor”) and a
Clearing Member or a Non-Clearing Member who succeeds to the said Unsettled Contracts
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(hereinafter called the “Position Transferee”) shall pay the position transfer fees to the
Exchange.
92.2
If the Exchange determines that there is a special reason, the Exchange may waive
the payment of position transfer fee in whole or in part.

Article 93.

Effect of Position Transfer

If the Exchange provides a notice of approval for position transfer set forth in
Article 95.(1) hereof, the Position Transferee (or its Designated Clearing Member, if the
Position Transferee is a Non-Clearing Member) shall assume all the obligations vis-à-vis
the Exchange which shall arise on and after the position transfer time (as defined in thesubsequent sentence) that the Position Transferor (or its Designated Clearing Member, if
the Position Transferor is a Non-Clearing Member; the same interpretation shall apply
hereinbelow in this Article 93) would assume in connection with the transferred position,
releasing the Position Transferor from such obligations, and shall acquire all the rights visà-vis the Exchange which generate after the position transfer time that the Position
Transferor would acquire vis-à-vis the Exchange. In this connection, the “positiontransfer time” shall be the date and time set forth in each Item below based on the category
set forth in each such Item.
(1)

Interest Rate Futures contracts or L-T Link Position: 11:00 a.m. of thebusiness day on which the day session of the trading day of the
Exchange’s approval for the concerned position transfer takes place(2)

FX Daily Futures contracts or Equity Index Daily Futures contracts: Dateand time specified by the Exchange from time to time

Article 94.

Position Transfer Notification

94.1
In the case of a Clearing Member or a Non-Clearing Member’s transfer of its
position, both the Position Transferor and the Position Transferee shall jointly provide the
Exchange with a notification stating the contents and other particulars designated by the
Exchange for the intended position transfer (hereinafter called the “position transfer
notification”) in accordance with the procedures prescribed by the Exchange; provided,
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however, that no position transfer shall be allowed for the Market Derivatives contracts or
the L-T Link Positions that have been executed or have arisen on the same trading day on
which the position transfer time would fall.
94.2
If a Position Transferor or a Position Transferee is a Non-Clearing Member
mentioned in Article 94.1 above, the position transfer notification shall be provided jointly
by such Non-Clearing Member and its Designated Clearing Member in accordance withthe procedures prescribed by the Exchange.

Article 95.

Exchange’s Approval for Position Transfer

Upon receipt of a position transfer notification by the Clearing Members or NonClearing Members, the Exchange shall provide all the concerned Clearing Members andNon-Clearing Members with a notice set forth in Item (1) or (2) below:(1)

A notice of approval for the intended position transfer; or(2)

A notice of disapproval for the intended position transfer.

Article 96.

Position Transfer Price

The price of, or the price specified in the Special Provisions for Options for, theUnsettled Contract succeeded by a Position Transferee (hereinafter called the “positiontransfer price”) shall be the price set forth in each Item below based on the category set
forth in each such Item.
(1)

Interest Rate Futures contracts or L-T Link Position: the daily settlement
price (as defined in Article 45 hereof) on the trading day immediately
preceding the trading day on which the position transfer time falls;
provided, however, that the position transfer price for the short positionor the long position specified in the Special Provisions for Options shallbe zero.

(2)

FX Daily Futures contracts: FX Settlement Price set forth in Article 902 hereof on the trading day immediately preceding the day on which the178

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position transfer time falls.
(3)

Article 97.

Equity Index Daily Futures contracts: Equity Index Settlement Price set
forth in Article 90-12 hereof on the trading day immediately preceding
the day on which the position transfer time falls.

Particulars for Position Transfer

In addition to the provisions of these Regulations, any matters necessary toprescribe in connection with the period of filing of position transfer notification and othermatters related thereto shall be separately prescribed by the Exchange.

CHAPTER XV.
MISCELLANEOUS PROVISIONS

Article 98.

Settlement Bank

A Clearing Member shall settle the market derivatives contracts that have been
executed, and the L-T Link Positions that have arisen, on the Exchange Market between
itself and the Exchange, through any of the financial institutions designated by the
Exchange.

Article 99.

Postponement of Settlement Date due to System Failure, etc.

99.1
Where the Exchange determines it impossible or difficult to settle any market
derivatives contract or any L-T Link Position through the Exchange System or othersystems established or installed by any organization other than the Exchange that arenecessary for settlement of market derivatives contracts or L-T Link Positions between the
Exchange and Clearing Members, due to a failure in any of the said systems or due to any
other unavoidable reason, the Exchange may postpone the settlement date for the whole
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or a part of the concerned market derivatives contract or L-T Link Position to thesubsequent day or later. In this case, the Exchange shall give a prior notice to that effectto the Clearing Members.
99.2
The particulars necessary for postponement of a settlement date set forth in Article
99.1 above shall be prescribed by the Exchange at any appropriate time.

Article 100.

Emergency Measures upon Natural Disaster, etc.

100.1 Where the Exchange determines it impossible or extremely difficult to settle any
market derivatives contract executed or any L-T Link Position arising on the Exchange
Market due to a natural disaster, a drastic change in the economic conditions or otherunavoidable reasons, the Exchange may separately determine clearing terms andconditions with respect to such market derivatives contract or such L-T Link Position ortake other necessary measures by the resolution of the board of directors.
100.2

Under the circumstances referred to in Article 100.1 above, the Exchange may

separately determine clearing terms and conditions or take other necessary measures
without a resolution of the board of directors if the Exchange deems it urgently necessary.
100.3 As and when the Exchange determines the new clearing terms and conditions or
takes any other necessary measures pursuant to Articles 100.1 and 100.2 above, Clearing
Members shall comply with such new clearing terms and conditions.

Article 101.

(Deleted)

Article 102.

Standard Time

102.1
Time.

Indication of time in these regulations shall be in accordance with Japan Standard

102.2 Indication of any date and day of the week in these regulations shall be inaccordance with the Japanese calendar.
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Article 103.

Change in Settlement Method

103.1 If the Exchange determines the conditions for postponement of the settlement
dates or the clearing terms and conditions for market derivatives contracts or L-T Link
Positions in accordance with Article 99 or 100 hereof, the Exchange may change thedeadline (time and date) for any adjustment of difference under Articles 46 through 49
hereof, for depositing of any Exchange Margin under Articles 7 through 12 of the Margin
Regulations, for depositing of any Non-Clearing Member's Margin under Article 11 of the
Margin Regulations, for depositing of FX Exchange Margin under Articles 5 through 7 of
the FX Margin Regulations, drawing of FX Exchange Margin under Article 9 of the FX
Margin Regulations, disbursement of FX Exchange Margin under Article 10 of the FX
Margin Regulations, for depositing of Equity Index Exchange Margin under Articles 6through 8 of the Equity Index Margin Regulations, for drawing of Equity Index Exchange
Margin under Article 11 of the Equity Index Margin Regulations, for disbursement ofEquity Index Exchange Margin under Article 12 of the Equity Index Margin Regulations,for depositing of FX Clearing Exchange Margin under Article 6 of the FX Clearing Margin
Regulations, for drawing of FX Clearing Exchange Margin under Article 8 of the FX
Clearing Margin Regulations and for final settlements under Articles 54, 69, 71, 73, 75,
76-2 and 76-6 hereof and take necessary measures incidental to such changes.
103.2 If the Exchange determines the postponement of the settlement dates for or theclearing terms and conditions for Three-month Euroyen futures option contracts or Threemonth TONA futures option contracts in accordance with Article 99 or 100 hereof, theExchange may change the deadline (time and date) for payment and receipt of option
premiums under Articles 77 through 79 and Articles 90-33 through 90-35 hereof and takenecessary measures incidental to such changes.
103.3 If the Exchange determines the postponement of the settlement dates or theclearing terms and conditions in respect of FX Daily Futures contracts in accordance with
Article 99 or 100 hereof, the Exchange may change the deadline (time and date) for thetransfer of an FX variation to an FX Exchange Margin set forth in Articles 11 and 25 of
the FX Margin Regulations, and take necessary measures incidental to such changes.
103.4 If the Exchange determines the postponement of the settlement dates or theclearing terms and conditions in respect of Equity Index Daily Futures contracts inaccordance with Article 99 or 100 hereof, the Exchange may change the deadline (time181

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and date) for the payment and receipt of money relevant to the Fixed Equity Index
variation set forth in Articles 13 and 22 of the Equity Index Margin Regulations, and takenecessary measures incidental to such changes.
103.5 If the Exchange determines the conditions for postponement of the settlement
dates or the clearing terms and conditions in respect of FX Clearing Futures contracts inaccordance with Article 99 or 100 hereof, the Exchange may change the deadline (timeand date) for the transfer of FX Clearing variation to FX Clearing Exchange Margin set
forth in Articles 9 of the FX Clearing Margin Regulations, and take necessary measuresincidental to such changes.

Article 104.

Amount of Clearing Registration Fee, etc.

The clearing registration fee set forth in Article 4.3, the name transfer charge set
forth in Article 14-2-2.3, the clearing deregistration fee set forth in Article 14-2-3 and theposition transfer fee set forth in Article 92 hereof shall be determined separately by the
Exchange.

Article 105.

Limitation on Liabilities for Inoperability of Calculation of
Equity Index

In the event that a Daily Futures Clearing Member or an Equity Index Daily
Futures Non-Clearing Member suffers loss or damage in relation to an Equity Index Daily
Futures transaction due to inoperability of or delay or error in calculation or distributionof the equity index listed in each Item of Article 3.1 of the Equity Index Special Provisions,
it may not seek indemnification of such loss or damage against either the Exchange or the
person in charge of calculation of such equity index (including a service provider who has
been entrusted the business of calculation of equity indices. ).

Article 106.

Liabilities relating to Financial Instruments Obligation
Assumption Business, etc.

The Exchange shall not be liable for any damages that may be incurred by a
Clearing Member or any third party as a consequence of the Exchange’s having done any
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of the following acts or things: (a) any of the actions listed in Article 86 of the Trading
Regulations, (b) postponement of the settlement date pursuant to Article 99 hereof, (c)taking of any necessary measures pursuant to Article 100 hereof including but not limited
to determination of clearing terms and conditions thereby, (d) taking of any necessary
measures pursuant to Article 103 hereof, or (e) taking of any other measures that the
Exchange may consider necessary in terms of the financial instruments obligation
assumption business or any business ancillary thereto.

Article 107.

Inactive Clearing Member

107.1 An Interest Rate Futures Clearing Member may apply for suspension of its rights
and obligations as Clearing Member in the manners prescribed by the Exchange, and whensuch application is approved by the Exchange, the rights and obligations of such Interest
Rate Futures Clearing Member as Clearing Member shall be suspended from the date andtime designated by the Exchange.
107.2

The Clearing Member whose rights and obligations are suspended in accordancewith Article 107.1 hereof (hereinafter called the “Inactive Clearing Member”) shall pay
the Exchange the Inactivity Fee for the suspension as prescribed by the Exchange.
107.3 The Inactive Clearing Member may apply for lifting of the suspension under
Article 107.1 hereof in the manners prescribed by the Exchange, and when suchapplication is approved by the Exchange, the rights and obligations of such Inactive
Clearing Member as Clearing Member shall be resumed from the date and time designatedby the Exchange.

SUPPLEMENTARY PROVISIONS
1.
These amended Clearing Regulations shall take effect as from April 1, 2013.
2.
An Interest Rate Futures Clearing Member whose rights and obligations havebeen suspended as of the date of enforcement of these amended Regulations based on
Paragraph 3 of the Supplementary Provisions which came into force as of April 1, 2004
shall apply for either continuance or discontinuance of the suspension in the manners
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Clearing Member.

SUPPLEMENTARY PROVISIONS
These amended Clearing Regulations shall take effect as from December 24, 2015.

SUPPLEMENTARY PROVISIONS
1.
These amended Clearing Regulations shall be enforced on and from February 27,
2017.
2.
A Clearing Member who falls under any of the Clearing Member set forth in each
Item below on the day immediately preceding the day on which these amended Clearing
Regulations are enforced (hereinafter referred to as the “Enforcement Date”) shall be
regarded as a Clearing Member set forth in each Item below on and after the Enforcement
Date:
(1)
FX Daily Futures Clearing Member set forth in Article 5.7 before theamendment
Daily Futures Clearing Member ineligible for Securities, etc. ClearingBrokering Contracts set forth in Article 5.9 after the amendment(2)
FX Daily Futures Clearing Member set forth in Article 5.8 before theamendment

(3)

(4)

Daily Futures Clearing Member ineligible for Securities, etc. ClearingBrokering Contracts set forth in Article 5.10 after the amendment
Equity Index Daily Futures Clearing Member eligible for Securities, etc.
Clearing-Brokering Contracts set forth in Article 5.10 before theamendment
Daily Futures Clearing Member eligible for Securities, etc. ClearingBrokering Contracts set forth in Article 5.7 after the amendment
Equity Index Daily Futures Clearing Member eligible for Securities, etc.
Clearing-Brokering Contracts set forth in Article 5.11 before theamendment
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(5)

(6)

Daily Futures Clearing Member eligible for Securities, etc. ClearingBrokering Contracts set forth in Article 5.8 after the amendment
Equity Index Daily Futures Clearing Member ineligible for Securities,
etc. Clearing-Brokering Contracts set forth in Article 5.12 before theamendment
Daily Futures Clearing Member ineligible for Securities, etc. ClearingBrokering Contracts set forth in Article 5.9 after the amendment
Equity Index Daily Futures Clearing Member ineligible for Securities,
etc. Clearing-Brokering Contracts set forth in Article 5.13 before theamendment
Daily Futures Clearing Member ineligible for Securities, etc. ClearingBrokering Contracts set forth in Article 5.10 after the amendment

3.
The FX Daily Futures Clearing Deposits that have been actually deposited by the
FX Daily Futures Clearing Members with the Exchange and the Equity Index Daily
Futures Clearing Deposits that have been actually deposited by the Equity Index Futures
Clearing Members with the Exchange as of the day immediately preceding the
Enforcement Date shall be regarded on and after the Enforcement Date as the Daily
Futures Clearing Deposits deposited by the Daily Futures Clearing Members with the
Exchange.

SUPPLEMENTARY PROVISIONS
These amended Clearing Regulations shall take effect as from June 9, 2017.

SUPPLEMENTARY PROVISIONS
These amended Clearing Regulations shall take effect as from July 3, 2017.

SUPPLEMENTARY PROVISIONS
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These amended Clearing Regulations shall take effect as from December 10, 2018.

SUPPLEMENTARY PROVISIONS
These amended Clearing Regulations shall take effect as from October 26, 2020.

SUPPLEMENTARY PROVISIONS
These amended Clearing Regulations shall take effect as from February 1, 2021.

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

SUPPLEMENTARY PROVISIONS
These amended Clearing Regulations shall take effect as from February 28, 2022.

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

SUPPLEMENTARY PROVISIONS
These amended Clearing Regulations shall take effect as from September 11, 2023.
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SUPPLEMENTARY PROVISIONS
These amended Clearing Regulations shall take effect as from March 1, 2024.

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