[English Translation]

ENFORCEMENT REGULATIONS FOR SPECIAL PROVISIONSFOR TRADING REGULATIONS AND
BROKERING TERMS FOR OPTIONSTOKYO FINANCIAL EXCHANGE INC.

(This is an English translation of the Enforcement Regulations for the Special Provisions
for Trading Regulations and Brokering Terms for Options, 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 Enforcement 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.)

Enforcement Regulations for the Special Provisions
for Trading Regulations and Brokering Terms for Options

Table of Contents
Page
Article 1.
Article 2.
Article 3.

Purpose .................................................................................................... 2
Manner of Calculation of Option Criterion Price ................................... 2
Period for Accepting Cancellation of Bids and Offers ........................... 2

Article 4.
Particulars for Bids and Offers ................................................................ 3
Article 4-2. through 4-2-4 (Deleted) .............................................................................. 5
Article 4-3. Correction to Contents of Bid or Offer ................................................... 5
Article 5.
Application for Approval of Option Contract for Error Trade
Correction, etc. ...................................................................................... 6
Articles 5-2. through 5-3-3 (Deleted) ............................................................................. 6
Article 5-4. Particulars for Application for Block Trade ............................................ 6
Article 5-5. Give-up Notification Period .................................................................... 9
Article 5-6. Take-up and Other Notification Period ................................................... 9
Article 5-7.
Article 5-8.
Article 6.

Correction to Contents of Give-up Notifications, etc. ............................ 9
Method Utilizing Information and Telecommunication Technology for
Notice to Customers ............................................................................ 10
Method of Reassignment to Customers ................................................ 12

SUPPLEMENTARY PROVISIONS .................................................................................. 12

Enforcement Regulations forSpecial Provisions for Options
Table of Contents1Article 1.

Purpose

These Enforcement Regulations set forth the matters to be prescribed ordesignated by the Exchange pursuant to the Special Provisions for Trading Regulations
and Brokering Terms for Options (hereinafter called the “Special Provisions for
Options”).

Article 2.

Manner of Calculation of Option Criterion Price

The option criterion price set forth in Articles 5.4 and 5.5 of the Special
Provisions for Options shall be in the figure equal to an integral multiple of 0.125 whichis the nearest to the concerned business day’s listing basis figure for the respective
contract month, and if there are two figures satisfying the aforesaid condition, the higher
one shall be adopted as the option criterion price.

Article 3.

Period for Accepting Cancellation of Bids and Offers

3.1
The Exchange shall accept cancellation requested by a Trading Member of its
bids or offers as set forth in Article 6.3 of the Special Provisions for Options during theperiod from the opening of the pre-open period to the close of the evening session (or theclose of the day session if no matching is conducted during the evening session; thisinterpretation shall similarly apply hereinafter).
3.2
Cancellation of a GTC order referred to in Article 4.1(2)(a) hereof shall be
acceptable during the period set forth in Article 2.1 hereof, as well as the period during
which Trading Members have access to the Trading System.
3.3
Whenever the Exchange deems it necessary, it may accept cancellation of bids
and offers from a Trading Member during the hours designated by the Exchange fromtime to time in addition to the periods set forth in Articles 3.1 and 3.2 above.

Enforcement Regulations forSpecial Provisions for Options
Table of Contents2Article 4.

Particulars for Bids and Offers

4.1
The matters to be prescribed by the Exchange in connection with bids and offers
for the Three-month Euroyen futures option contracts or the Three-month TONA futures
option contracts based on the auction method pursuant to Article 9.7 of the Special
Provisions for Options shall be as follows.
(1)

Matching process of bids and offers
A bid and an offer shall be processed in the Trading System in themanner set forth below, within a range of the corresponding volume
between them.

(2)

(a)

When a bid is submitted at a price higher than the price of anyof the offers then submitted, the bid shall be processed in thevolume corresponding to such offer or offers, subject to thelower limit set on the bid.

(b)

When an offer is submitted at a price lower than the price of
any of the bids then submitted, the offer shall be processed in
the volume corresponding to such bid or bids, subject to thehigher limit set on the offer.

Types of modifiers
A Trading Member may apply any of the following modifiers for any
bid or offer submitted by it.
(a)Good Till Cancelled (GTC)

A modifier to cause the bid or offer to become null and void at theclose of the evening session of a specified business day (or, if nobusiness day is designated for that purpose, the business day on which
there occurs the day session of the last trading day).
(b)

Good in Session (GIS)

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A modifier to cause the bid or offer which is submitted during a
pre-open period or a day session to become null and void at the close of
the day session, and cause the bid or offer which is submitted during anevening session to become null and void at the close of the evening
session.
(c)
The On-Open modifier set forth in Article 2(26) of the Special
Provisions for Options(3)

Modifiers which may be applied to a limit order
The modifier listed in Article 4.1 (2) (a) or 4.1(2)(b) above(4)

Modifiers applied to a market order
The modifier listed in Article 4.1(2)(a) or 4.1(2)(b) hereof may not beapplied to any market order. Any market order which is submitted
during a pre-open period shall be subject without exception to the
On-Open modifier listed in Article 4.1(2)(c) hereof.

(5)

Expiration of a bid or offer
A bid or offer inputted into the Trading System which remains
unmatched shall expire as set forth below; provided, however, that,when Three-month Euroyen futures option transactions or Three-month
TONA futures option transactions are suspended pursuant to any Itemof Article 14 of the Trading Regulations, the expiry of the bid or offer
may be designated by the Exchange from time to time.
(a)A limit order shall become null and void at the close of theevening session of the business day on which the limit order isinputted into the Trading System, provided, however, that if
any condition is imposed on the expiration thereof, suchcondition shall be observed.

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4

(6)

(b)

A market order (except for On-Open order) shall become nulland void immediately.

(c)

An On-Open order shall be treated as per the provisions ofArticle 8.4 of the Special Provisions for Options.

Prohibition of market order, etc.
Whenever the Exchange determines it necessary in light of state of bids
and offers then submitted and other factors concerned, the Exchange
may prohibit any Trading Member from submitting market orders(including On-Open orders).

Article4-2. through 4-2-4

Article 4-3.

(Deleted)

Correction to Contents of Bid or Offer

Correction to the inputted contents pursuant to Article 10-2.3 of the Special
Provisions for Options shall be made in the following manner.
(1)

Correction to a bid or offer
In such a manner that the concerned Trading Member will cancel the
relevant bid or offer and then input a correct bid or offer in accordancewith Article 9 of the Special Provisions for Options(2)

Correction of the volume for a bid or offer
In such a manner to cancel the bid or offer to the extent of the volume of
reduction

Enforcement Regulations forSpecial Provisions for Options
Table of Contents5Article 5.

Application for Approval of Option Contract for Error Trade
Correction, etc.

A Trading Member who intends to obtain the Exchange’s approval set forth in
Article 14 of the Special Provisions for Options shall submit a specified form of
application to the Exchange not later than 10:00 a.m. of the business day immediately
following the business day on which there has occurred the Error Trade or other event inquestion.

Articles 5-2. through 5-3-3

Article 5-4.

(Deleted)

Particulars for Application for Block Trade

The matters to be prescribed by the Exchange in connection with block tradepursuant to Article 14-6.2 of the Special Provisions for Options shall be as follows.
(1)

Method of application
A Trading Member shall apply for a block trade by inputting thefollowing information into the Trading System through the Member’s
terminal device.
(a)Name of the applicant Trading Member(b)Whether it is a put option on Three-month Euroyen futures ora call option on Three-month Euroyen futures, or Whether it isa put option on Three-month TONA futures or a call option on
Three-month TONA futures(c)

Type of the contract month(d)

Exercise price

(e)

Price

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(2)

(f)

Volume designated in the relevant bid or offer(g)Classification of whether for a customer account or for a houseaccount for the sale contract or purchase contract(h)

The counterparty Trading Member (if the applicant Trading
Member intends to execute the Three-month Euroyen futures
option contract or the Three-month TONA futures option
contract with another Trading Member)

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

(3)

Minimum volume
The volume of Three-month Euroyen futures option contract orThree-month TONA futures option contract which shall be executed at a
block trade shall be not less than one (1) trading unit.

(4)

Conditions for approval
If the Exchange confirms that the application submitted by a Trading
Member satisfies all of the following conditions, the Exchange shallapprove execution of the Three-month Euroyen futures option contract
or the Three-month TONA futures option contract based on the contentsof such application.
(a)All of the information set forth in Item (1) above are clearlyspecified in the application.

(b)

The bid/offer price set forth in (e) of Item (1) above is theprice set forth in Item (2) above.

(c)

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

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7satisfied.
(d)

(5)

It is not obviously inappropriate in any other respects to allow
execution of the market derivatives contract based on theapplication.

Notice of approval or disapproval
If the Exchange approves execution of the Three-month Euroyen
futures option contract or the Three-month TONA futures option
contract pursuant to Item (4) above, the Exchange shall communicate
its approval of its disapproval to the applicant Trading Member. If the
Exchange fails to give either of such notices by the close of the evening
session of the business day on which the application is submitted to the
Exchange, the Exchange shall be deemed to have disapproved theapplication.

Enforcement Regulations forSpecial Provisions for Options
Table of Contents8Article 5-5.

Give-up Notification Period

The period for give-up notification to be prescribed by the Exchange pursuant
to Article 15-6 of the Special Provisions for Options shall be a period commencing at thetime when the Three-month Euroyen futures option contract or the Three-month TONA
futures option contract to be given up is executed and ending at 4:45 p.m. of the business
day on which there occurs the day session of the trading day on which such contract is
executed, but not later than 2:30 p.m. as to a contract month for which the last trading
day falls on the said business day.

Article 5-6.

Take-up and Other Notification Period

The period to be prescribed by the Exchange pursuant to Article 15-6 of theSpecial Provisions for Options for notification pursuant to Article 15-4.1 of the Special
Provisions for Options (hereinafter called “take-up notification, etc.”) shall be a period
commencing at the time when the Exchange gives the notification under Article 15-3.2of the Special Provisions for Options and ending at 5:00 p.m. of the business day on
which there occurs the day session of the trading day on which the Three-month Euroyen
futures option contract or the Three-month TONA futures option contract to be given up
is executed, but not later than 2:45 p.m. as to a contract month for which the last trading
day falls on the said business day.

Article 5-7.

Correction to Contents of Give-up Notifications, etc.

The matters to be prescribed by the Exchange pursuant to Article 15-6 of theSpecial Provisions for Options for correction to give-up notifications and take-up
notifications, etc. (hereinafter collectively called “give-up notification, etc.”) shall be as
set forth below.
(1)

Correction to the contents of give-up notification, etc.
If a Trading Member intends to make correction to the give-up
notification, etc. given by it with respect to a Three-month Euroyen
futures option contract or a Three-month TONA futures option contract
given up based on a Customer’s order due to a truly unavoidable reason,

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9the Trading Member shall (together with its Designated Clearing
Member if such Trading Member is a Non-clearing Member) notify the
Exchange to that effect, in the manner prescribed by the Exchange, by
10:00 a.m. of the third business day after the business day on which
there occurs the day session of the trading day on which such given up
contract is executed; provided, however, that no correction shall bemade to a give-up notification, etc. for any contract month on its last
trading day.
(2)

Where option exercise or reassignment has been made for a
Three-month Euroyen futures option contract or a Three-month TONA
futures option contract for which the contents of give-up notification,etc. are to be corrected
If option exercise or reassignment had been made for a Three-month
Euroyen futures option contract or a Three-month TONA futures option
contract for which the notification for correction has been madepursuant to Item (1) above, the intended correction shall be made to theThree-month Euroyen futures contract or the Three-month TONA
futures option contract executed as a result of the option exercise orreassignment.

(3)

Confirmation of results of correction to the contents of give-up
notification, etc.
A Trading Member who has made a notification of correction to thegive-up notification, etc. as set forth in Item (1) above shall immediately
confirm the results of the correction made by the Exchange.

Article 5-8.

Method Utilizing Information and Telecommunication Technology
for Notice to Customers

5-8.1 The method separately prescribed by the Exchange referred to in Article 36 of
the Special Provisions for Options shall be any one of the following methods.
(1)

A method utilizing an electronic data processing and network

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10organization as set forth in Item (a) or (b) below(a)Such a method that: (i) transmission will be made via
telecommunication lines connecting computers used by a
Trading Member and those used by a Customer and (ii) the
contents so transmitted will be recorded in files stored in thecomputers used by a recipient(b)Such a method that: (i) the matters recorded in files stored in
the computers used by a Trading Member that would
otherwise be described in the notice referred to in Article 36 of
the Special Provisions for Options will be make available foraccess by a Customer via telecommunication lines and (ii)those matters will be downloaded in files stored in thecomputers used by the Customer.

(2)

A method to: (i) record the matters that would otherwise be describedin the notice referred to in Article 36 of the Special Provisions for
Options in such files that will be controlled by magnetic disc,
CD-ROM or any other equivalent media capable of reliably recordingsome contents and (ii) dispatch the recording media containing such
files

5-8.2 Each of the methods set forth in Article 5-8.1 above shall be the one enabling a
Customer to output the contents recorded in the files in paper form.
5-8.3

An “electronic data processing and network organization” referred to in Article

5-8.1(1) above means an electronic data processing and network organization connecting
computers used by a Trading Member and those used by its Customer by means oftelecommunication lines.

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11Article 6.

Method of Reassignment to Customers

The manner of reassignment made by the Exchange to the Customers as set
forth in Article 37.1 of the Special Provisions for Options shall be any one of thefollowing methods.
(1)

Assignment in the order of execution of the Three-month Euroyen
futures option contracts or the Three-month TONA futures option
contracts(2)

Assignment in a random drawing(3)

Assignment pro rata in accordance with the Customers’ volumes of
positions(4)

Assignment in any other equitable manner without arbitrariness

SUPPLEMENTARY PROVISIONS
The amended regulations shall take effect as from February 3, 2014.

SUPPLEMENTARY PROVISIONS
The amended regulations shall take effect as from July 24, 2017.

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

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SUPPLEMENTARY PROVISIONS
The amended regulations shall take effect as from January 4, 2024.

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