[English Translation]

ENFORCEMENT REGULATIONS FOR
SPECIAL PROVISIONS FOR TRADING REGULATIONS FOREQUITY INDEX DAILY FUTURES TRANSACTIONSTOKYO FINANCIAL EXCHANGE INC.

(This is an English translation of the Enforcement Regulations for Special Provisions for
Trading Regulations for Equity Index Daily Futures Transactions, which original has been
prepared in the Japanese language only. The Japanese language text hereof shall govern
for all purposes and in all respects. Accordingly, all questions that may arise within orwithout courts of law in regard to the meaning of the words, provisions and stipulations ofthese Enforcement Regulations shall be decided in accordance with the Japanese language
text. Tokyo Financial Exchange Inc. (“TFX”) assumes no responsibility for accuracy,
correctness, or content of this English text.)

Enforcement Regulations forSpecial Provisions for Trading Regulations for
Equity Index Daily Futures Transactions

Table of Contents
Page
Article 1.

Purpose ................................................................................................................. 1

Article 2.

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

Article 3.

Particulars for Bids and Offers ............................................................................ 1

Article 4.

Limited Price Range ............................................................................................ 4

Article 5.

Volume Limit on Non-MM Bids and Offers ....................................................... 5

Article 6.

Correction to Contents of Bid or Offer................................................................ 6

Article 7.

Application for Approval of Market Derivative Transaction for Error Trade
Correction, etc. .................................................................................................... 7

Article 7-2.

Trading Day on which an Equity Index Daily Futures contract is executed
under the Position Adjustment Program .............................................................. 7

Article 7-3.

Volume of Equity Index Daily Futures contracts to be Executed under the
Position Adjustment Program .............................................................................. 7

Article 7-4.

Particulars for Application for Block Trade ........................................................ 7

Article 7-5.

The Period for Notice of approval or disapproval for Block Trade................... 10

Article 7-6.

Period for Suspension of Block Trade ............................................................... 10

Article 8.

Method Utilizing Information and Telecommunication Technology for Notice
to Customers ...................................................................................................... 10

Article 9.

Recordkeeping for Equity Index Daily Futures Transactions based on
Customer’s Order .............................................................................................. 11

Article 10.

System of Preventing Possible Conflict of Interest Transactions ...................... 12

Article 11.

Method Utilizing Information and Telecommunication Technology for Notice
to Equity Index Daily Futures Trading Members, etc. ...................................... 12

SUPPLEMENTARY PROVISIONS ................................................................................................ 14

Enforcement Regulations for
Equity Index Special Provisions
Table of Contents

Article 1.

Purpose

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

Article 2.

Period for Accepting Cancellation of Bids and Offers

2.1
Cancellation of bids or offers set forth in Article 5.11 of the Equity Index
Special Provisions shall be acceptable during the period from the opening of the
pre-open period to the close of the Market Trading Period.
2.2
Whenever the Exchange deems it necessary, it may accept cancellation of bids
and offers during the hours designated by the Exchange from time to time in addition to
the period set forth in Article 2.1 above.

Article 3.

Particulars for Bids and Offers

The matters to be separately prescribed by the Exchange pursuant to Article
23.9 of the Equity Index Special Provisions shall be as follows.
(1)

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

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

(d)

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

(2)

IC (Immediate and Cancel) (meaning a condition under which a bid oroffer becomes null and void if the bid or offer is not matched for its
entire volume simultaneously with the submission of the bid or offer,and the unmatched portion of the bid or offer becomes null and void if
the bid or offer is matched in part only simultaneously with thesubmission of the bid or offer; the same shall apply hereinafter) may be
applied to any limit order, except those accepted in a pre-open period.

(3)

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

Combination of a bid by limit order and a trigger market bid in2

Enforcement Regulations for
Equity Index Special Provisions

the same volume(4)

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

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

(b)

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

(c)

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

(d)With respect to a bid or offer whose duration includes an
Exchange Holiday as defined in Article 6.1 and Article 6.2 ofthe Equity Index Special Provisions or an ad hoc holiday as
defined in Article 6.3 thereof, the bid or offer shall become
null and void at the close of the Market Trading Period of the
trading day immediately preceding the Exchange Holiday or
ad hoc holiday whichever falls first after the submission of thebid or offer.

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Article 4.

Limited Price Range

The limit on the price range set forth in Article 23.5 of the Equity Index Special
Provisions (hereinafter called the “price fluctuation range”) shall be specified below withrespect to Nikkei 225 Daily Futures contracts with Reset Date, DJIA Daily Futurescontracts with Reset Date, NASDAQ-100 Daily Futures contracts with Reset Date andRussell 2000 Daily Futures contracts with Reset Date with respect to its category of
Equity Index settlement price on the preceding trading day.
(1)

Nikkei 225 Daily Futures contracts with Reset Date
Equity Index settlement priceon the preceding trading dayLess than 7,500 yen+/- 1,000 yen

Not less than 7,500 yen, less than 10,000 yen+/- 1,500 yen

Not Less than 10,000 yen, less than 12,500 yen+/- 2,000 yen

Not Less than 12,500 yen, less than 17,500 yen+/- 3,000 yen

Not less than 17,500 yen, less than 22,500 yen+/- 4,000 yen

Not less than 22,500 yen, less than 27,500 yen+/- 5,000 yen

Not less than 27,500 yen, less than 32,500 yen+/- 6,000 yen

Not less than 32,500 yen, less than 37,500 yen+/- 7,000 yen

Not less than 37,500 yen, less than 42,500 yen+/- 8,000 yen

Not less than 42,500 yen, less than 47,500 yen+/- 9,000 yen

Not less than 47,500 yen, less than 52,500 yen+/-10,000 yen

Not less than 52,500 yen, less than 57,500 yen+/-11,000 yen

Not less than 57,500 yen, less than 62,500 yen+/-12,000 yen

Not less than 62,500 yen(2)Price fluctuation range+/-13,000 yen

DJIA Daily Futures contracts with Reset Date, NASDAQ-100 Daily
Futures contracts with Reset Date and Russell 2000 Daily Futurescontracts with Reset Date
Equity Index settlement priceon the preceding trading dayLess than 500 points
Not less than 500 points, less than 750 points
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Price fluctuation range+/- 100 points+/- 150 points

Article 5.

Not less than 750 points, less than 1,000 points+/- 200 points

Not less than 1,000 points, less than 1,500 points+/- 300 points

Not less than 1,500 points, less than 2,000 points+/- 400 points

Not less than 2,000 points, less than 2,500 points+/- 500 points

Not less than 2,500 points, less than 3,000 points+/- 600 points

Not less than 3,000 points, less than 4,000 points+/- 800 points

Not less than 4,000 points, less than 5,000 points+/- 1,000 points

Not less than 5,000 points, less than 7,500 points+/- 1,200 points

Not less than 7,500 points, less than 10,000 points+/- 1,500 points

Not Less than 10,000 points, less than 12,500 points+/- 2,000 points

Not Less than 12,500 point, less than 17,500 points+/- 3,000 points

Not less than 17,500 points, less than 22,500 points+/- 4,000 points

Not less than 22,500 points, less than 27,500 points+/- 5,000 points

Not less than 27,500 points, less than 32,500 points+/- 6,000 points

Not less than 32,500 points, less than 37,500 points+/- 7,000 points

Not less than 37,500 points, less than 42,500 points+/- 8,000 points

Not less than 42,500 points, less than 47,500 points+/- 9,000 points

Not less than 47,500 points, less than 52,500 points+/-10,000 points

Not less than 52,500 points, less than 57,500 points+/-11,000 points

Not less than 57,500 points, less than 62,500 points+/-12,000 points

Not less than 62,500 points+/-13,000 points

Volume Limit on Non-MM Bids and Offers

5.1
The limit on the trading volume with respect to non-MM bids and offers
prescribed in Article 23.6 of the Equity Index Special Provisions shall be those set forthin the following table:
Type of Equity Index Daily Futures contract
Nikkei 225 Daily Futures contracts
with Reset Date
FTSE 100 Daily Futures contracts
with Reset Date
DAX® Daily Futures contracts
with Reset Date
DJIA Daily Futures contracts

less than 500 trading units
less than 200 trading units
less than 200 trading units
less than 2,000 trading units

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Volume Limit

with Reset Date
Gold ETF Daily Futures contracts
with Reset DateWTI ETF Daily Futures contracts
with Reset Date
NASDAQ-100 Daily Futures contracts
with Reset Date
Russell 2000 Daily Futures contracts
with Reset Date
Silver ETF Daily Futures contracts
with Reset Date
Platinum ETF Daily Futures contracts
with Reset Dateless than 200 trading units
less than 200 trading units
less than 2,000 trading units
less than 2,000 trading units
less than 1,000 trading units
less than 200 trading units

5.2
The Exchange shall not accept a non-MM bid or offer exceeding the volume
limit set forth in Article 5.1 above.

Article 6.

Correction to Contents of Bid or Offer

6.1
Correction to the inputted contents pursuant to Article 26.3 of the Equity Index
Special Provisions shall be made in the following manner.
(1)

Correction to a bid or offer
The concerned Equity Index Daily Futures Trading Member, etc. shallcancel the bid or offer and then input a correct bid or offer inaccordance with Article 23.2 of the Equity Index Special Provisions.

(2)

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

(b)

Increase of the volume
The bid or offer shall be cancelled in its entire volume andthen a new bid or offer shall be inputted in a correct volume in
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accordance with Article 23.2 of the Equity Index Special
Provisions.
6.2
Notwithstanding the provision of Item (a) of Article 6.1(2) above, if a trigger
order is matched in part, the volume of the unmatched portion of the said trigger ordershall be cancelled entirely and a new trigger order or new multiple trigger orders shall be
inputted in a correct volume in accordance with Article 23.2 of the Equity Index Special
Provisions.

Article 7.
Application for Approval of Market Derivative Transaction forError Trade Correction, etc.
If an Equity Index Daily Futures Trading Member, etc. intends to obtain the
Exchange’s approval for Error Trade Correction pursuant to Article 19 of the Trading
Regulations, the Equity Index Daily Futures Trading Member, etc. shall submit a
specified form of application to the Exchange not later than the close of the Market
Trading Period of the trading day on which the Error Trade or other event in question has
occurred.

Article 7-2.

(Deleted)

Article 7-3.

(Deleted)

Article 7-4.

Particulars for Application for Block Trade

The matters to be prescribed by the Exchange in connection with block tradepursuant to Article 28-4.2 of the Trading Regulations for Equity Index Daily Futures
Transactions shall be as follows.
(1)

Method of application
An Equity Index Daily Futures Trading Member, etc. shall apply for a
block trade by inputting the following information into the FX/Equity
Index Trading and Clearing System through the Member’s terminal
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Equity Index Special Provisionsdevice.
(a)Name of the applicant Equity Index Daily Futures Trading
Member, etc.

(b)

Issue of Equity Index Daily Futures transactions

(c)

Price

(d)

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

The counterparty Equity Index Daily Futures Trading
Member, etc. (if the applicant Equity Index Daily Futures
Trading Member, etc. intends to execute the block trade withanother Equity Index Daily Futures Trading Member, etc.)(g)

The account number of Equity Index Daily Futures Trading
Member, etc. for the sale contract or purchase contract(2)

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

(3)

Minimum volume
The volume of Equity Index Daily Futures contract which shall be
executed at a block trade shall be those set forth in the following
table:
Type of Equity Index
Daily Futures contract
Nikkei 225 Daily Futures contracts

not less than five hundred (500) times

with Reset Datethe trading unit

FTSE 100 Daily Futures contracts

not less than two hundred (200) times

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Enforcement Regulations for
Equity Index Special Provisions

Volume(4)with Reset Datethe trading unit

DAXⓇ Daily Futures contracts

not less than two hundred (200) times

with Reset Datethe trading unit

DJIA Daily Futures contracts

not less than two thousand (2,000)

with Reset Datetimes the trading unit

Gold ETF Daily Futures contracts

not less than two hundred (200) times

with Reset Datethe trading unit

WTI ETF Daily Futures contracts

not less than two hundred (200) times

with Reset Datethe trading unit

NASDAQ-100 Daily Futures contracts

not less than two thousand (2,000)

with Reset Datetimes the trading unit

Russell 2000 Daily Futures contracts

not less than two thousand (2,000)

with Reset Datetimes the trading unit

Silver ETF Daily Futures contracts

not less than one thousand (1,000)

with Reset Datetimes the trading unit

Platinum ETF Daily Futures contracts

not less than two hundred (200) times

with Reset Datethe trading unit

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

(b)

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

(c)

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

(d)

It is not obviously inappropriate in any other respects to allow
execution of the Equity Index Daily Futures contract based on
the application.
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(5)Article 7-5.
Trade

Notice of approval or disapproval
If the Exchange approves execution of the Equity Index Daily Futurescontract pursuant to Item (4) above, the Exchange shall communicate
its approval or disapproval to the applicant Equity Index Daily Futures
Trading Member, etc. If the Exchange fails to give a notice of either
approval or disapproval by the close of the evening session of thebusiness day on which the application is submitted to the Exchange, theExchange shall be deemed to have disapproved the application.

The Period for Notice of approval or disapproval for Block

The period to be prescribed by the Exchange pursuant to Article 28 -6.4 of
the Trading Regulations for Equity Index Daily Futures transactions shall be withinten (10) minutes from the execution of such contract in principle.

Article 7-6.

Period for Suspension of Block Trade

A block trade shall be suspended in the case listed in any Item of Article28-8 of the Trading Regulations for Equity Index Daily Futures transactions for aperiod deemed necessary by the Exchange from time to time.

Article 8.

Method Utilizing Information and Telecommunication

Technology for Notice to Customers
8.1
The method separately prescribed by the Exchange referred to in Article 32.3 ofthe Equity Index Special Provisions shall be any one of the methods set forth in Item (1)or (2) below.
(1)

An electronic data processing and network organization as set forth in
Item (a) or (b) below shall be utilized.
(a)Transmission will be made via telecommunication lines
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Equity Index Special Provisions

connecting computers used by an Equity Index Daily Futures
Trading Member, etc. and those used by an Equity Index Daily
Futures Customer and the contents so transmitted will berecorded into files stored in the computers used by a recipient.
(b)

The matters recorded into files stored in the computers used byan Equity Index Daily Futures Trading Member, etc. thatwould otherwise be described in the notice referred to in
Article 32.2 of the Equity Index Special Provisions will bemade available for access by an Equity Index Daily Futures
Customer via telecommunication lines and those matters will
be downloaded into files stored in the computers used by the
Equity Index Daily Futures Customer.

(2)

The matters that would otherwise be described in the notice referred toin Article 32.2 of the Equity Index Special Provisions shall be recorded
into such files that will be controlled by magnetic disc, CD-ROM or
any other equivalent media capable of reliably recording somecontents, and the recording media containing such files shall bedispatched.

8.2
Each of the methods set forth in Article 8.1 above shall be the one enabling an
Equity Index Daily Futures Customer to output the contents recorded into the files inpaper form.
8.3
An “electronic data processing and network organization” referred to in Article
8.1(1) above means an electronic data processing and network organization connecting
computers used by an Equity Index Daily Futures Trading Member, etc. and those usedby its Equity Index Daily Futures Customer by means of telecommunication lines.

Article 9.

Recordkeeping for Equity Index Daily Futures Transactions
based on Customer’s Order

9.1
The records to be prescribed by the Exchange pursuant to Article 33 of theEquity Index Special Provisions shall be the records of bids and offers and trading
results acquired from the Member’s terminal devices
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9.2
The records set forth in Article 9.1 above shall be composed of the matters set
forth in Appendix attached hereto.
9.3
An Equity Index Daily Futures Trading Member, etc. may keep the records set
forth in Article 9.1 above in the form of output or onto a microfilm, floppy disk or any
other electronic media.
9.4

The records set forth in Article 9.1 above shall be kept for five (5) years.

Article 10.

System of Preventing Possible Conflict of Interest Transactions

The appropriate system separately prescribed by the Exchange referred to in
Article 13.1 of the Equity Index Special Provisions shall be as follows.
(1)

A system which separates its business section in charge of Equity Index
Market-Making from its business section in charge of the brokerage
service undertaken by it(2)

A system which separates its person in charge of Equity Index
Market-Making from its person in charge of the brokerage service
undertaken by it(3)

A system which physically and systematically separates managementof customer information related to Equity Index Daily Futurescontracts between its business section in charge of Equity Index
Market-Making and its business section in charge of the brokerage
service undertaken by it(4)

Article 11.

Other system which the Exchange determines necessary to beestablished and maintained

Method Utilizing Information and Telecommunication
Technology for Notice to Equity Index Daily Futures Trading
Members, etc.
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11.1
The method separately prescribed by the Exchange referred to in Article 34.2 ofthe Equity Index Special Provisions shall be any one of the methods set forth in Item (1)or (2) below.
(1)

An electronic data processing and network organization as set forth in
Item (a) or (b) below shall be utilized.
(a)Transmission will be made via telecommunication lines
connecting computers used by the Exchange and those used byan Equity Index Daily Futures Trading Member, etc. and thecontents so transmitted will be recorded into files stored in thecomputers used by a recipient.

(b)

The matters recorded into files stored in the computers used by
the Exchange that are set forth in the Appendix attached to theEquity Index Special Provisions will be made available foraccess by an Equity Index Daily Futures Trading Member, etc.
via telecommunication lines and those matters will be
downloaded into files stored in the computers used by the
Equity Index Daily Futures Trading Member, etc.

(2)

The matters that would otherwise be described in the notice referred toin the Appendix attached to the Equity Index Special Provisions shallbe recorded into such files that will be controlled by magnetic disc,
CD-ROM or any other equivalent media capable of reliably recordingsome contents, and the recording media containing such files shall bedispatched.

11.2
An “electronic data processing and network organization” referred to in Article
11.1(1) above means an electronic data processing and network organization connecting
computers used by the Exchange and those used by an Equity Index Daily Futures
Trading Member, etc. by means of telecommunication lines.

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SUPPLEMENTARY PROVISIONS
These amended regulations shall take effect as from September 20, 2014.

SUPPLEMENTARY PROVISIONS
These amended regulations shall take effect as from June 27, 2017.

SUPPLEMENTARY PROVISIONS
These amended regulations shall take effect as from January 29, 2018.

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

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

SUPPLEMENTARY PROVISIONS
These amended regulations shall take effect as from November 1st, 2021.

SUPPLEMENTARY PROVISIONS
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Equity Index Special Provisions

These amended regulations shall take effect as from February 28, 2022.

SUPPLEMENTARY PROVISIONS
These amended regulations shall take effect as from September 11, 2023.

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Appendix

Matters to be Recorded with respect to Orders and Results thereof(Article 9)Matters to be Recorded

1.
2.
3.

Types of Equity Index Daily Futures contracts and the year on which the Reset
Date falls
Distinction of sale/purchase contract
Price (and the fact that it is based on an IC market order, trigger market order or

4.
5.
6.
7.
8.
9.
10.

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

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