[English Translation]

FX CLEARING EXCHANGE MARGIN SETTLEMENTREGULATIONSTOKYO FINANCIAL EXCHANGE INC.

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

FX Clearing Exchange Margin Settlement Regulations

Table of Contents
Page
CHAPTER I. GENERAL PROVISIONS........................................................................... 1
Article 1.
Purpose ..................................................................................................... 1
Article 2.
Monies to be Settled ................................................................................. 1
CHAPTER II.
Article 3.
Article 4.
Article 5.
Article 6.

DESIGNATION OF SERVICE OFFICE OF

FX CLEARINGEXCHANGE MARGIN SETTLEMENT BANK ....................................... 1
Designation of Service Office of FX Clearing Exchange Margin
Settlement Bank ...................................................................................... 2
Establishment of FX Clearing Exchange Margin Settlement Account .... 2Change in Registered Matters .................................................................. 2
Closure of FX Clearing Exchange Margin Settlement Account due to
Revocation of Designated Service Office ............................................... 2

CHAPTER III. SETTLEMENT OF FX CLEARING EXCHANGE MARGINS ............. 3
Article 7.
Article 8.
Article 9.

Notice of Shortfall of FX Clearing Exchange Margin to FX Broker
Trading Member and Payment Thereof .................................................. 3
Notice of Shortfall of FX Clearing Exchange Margin to LP Trading
Member and Payment Thereof ................................................................ 4Deadline for Claim for Disbursement of FX Clearing Exchange Marginand Deadline for Disbursement ............................................................... 5CHAPTER IV. HANDLING OF ADVERSE INCIDENTS ............................................... 5Article 10. Communication Method upon Inability of Inter-account Transfer .......... 5Article 11.

Refusal of Payment to FX Clearing Futures Clearing Member ............... 5CHAPTER V. MISCELLANEOUS PROVISIONS ........................................................... 6Article 12. Postponement of Deadline for Notice by the Exchange ........................... 6Article 13. Documents for FX Clearing Exchange Margins ...................................... 6Article 14. Determination of Necessary Matters, etc. ................................................ 7Article 15. Costs and Expenses .................................................................................. 7Article 16. Burden of Damages .................................................................................. 7FX Clearing Exchange Margin
Settlement Regulations
Table of Contents

1SUPPLEMENTARY PROVISIONS ..................................................................................... 8FX Clearing Exchange Margin
Settlement Regulations
Table of Contents2CHAPTER I.
GENERAL PROVISIONS

Article 1.

Purpose

1.1
These Regulations set forth necessary matters with respect to the manner ofpayment and receipt of FX Clearing Exchange Margins between the Exchange and an
FX Clearing Futures Clearing Member who is an FX Clearing Futures Trading Member
pursuant to the regulations as follows: the Trading Regulations, the Special Provisions
for Trading Regulations for FX Clearing Futures Transactions (hereinafter called the“FX Clearing Special Provisions”), the Clearing Regulations, and the Regulations forMargin and Unsettled Contracts for FX Clearing Futures Transactions (hereinafter called
the “FX Clearing Margin Regulations”). The payments and receipts referred to in thepreceding sentence are hereinafter collectively called “FX Clearing Exchange Margin
Settlement(s)”.
1.2
The manner separately prescribed by the Exchange specified in Article 6.1 of
the FX Clearing Margin Regulations shall be as set forth in Chapters II and III.

Article 2.

Monies to be Settled

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

CHAPTER II.
DESIGNATION OF SERVICE OFFICE OF
FX CLEARING EXCHANGE MARGIN SETTLEMENT BANKFX Clearing Exchange Margin
Settlement Regulations
1Article 3.

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

Article 4.

Establishment of FX Clearing Exchange Margin Settlement Account

4.1
The Exchange shall establish a deposit account for settlement of FX Clearing
Exchange Margins in each Designated Service Office (hereinafter called the “FX
Clearing Exchange Margin Settlement Account”).
4.2

Each FX Clearing Futures Clearing Member shall establish its FX Clearing

Exchange Margin Settlement Account in one of the Designated Service Offices.
4.3
Whenever an FX Clearing Futures Clearing Member has established its FX
Clearing Exchange Margin Settlement Account, the FX Clearing Futures Clearing
Member shall register the same with the Exchange in the form prescribed by theExchange.

Article 5.

Change in Registered Matters

Whenever an FX Clearing Futures Clearing Member intends to change any ofthe matters registered in the prescribed form set forth in Article 4.3 hereof, the FX
Clearing Futures Clearing Member shall provide the Exchange with an advance written
notice stating the matter(s) to be changed.

Article 6.

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

FX Clearing Exchange Margin
Settlement Regulations2

6.1
Whenever the Exchange revokes the designation of any Designated ServiceOffice, the Exchange shall immediately notify the FX Clearing Futures ClearingMembers having their FX Clearing Exchange Margin Settlement Accounts with the said
Designated Service Office.
6.2
Each FX Clearing Futures Clearing Member receiving a notice set forth inArticle 6.1 above shall establish its FX Clearing Exchange Margin Settlement Accountwith another Designated Service Office in accordance with Article 4.2 hereof before therevocation of the concerned Designated Service Office takes effect. In this case, theFX Clearing Futures Clearing Member shall register such establishment with theExchange in the form set forth in Article 4.3 hereof.

CHAPTER III.
SETTLEMENT OF FX CLEARING EXCHANGE MARGINSArticle 7.

Notice of Shortfall of FX Clearing Exchange Margin to FX Broker
Trading Member and Payment Thereof

7.1
If a shortfall of FX Clearing Exchange Margin defined in Article 6.1 of the FX
Clearing Margin Regulations arises to an FX Clearing Futures Clearing Member who isan FX Broker Trading Member, the Exchange shall notify the FX Clearing Futures
Clearing Member of the amount of FX Clearing Exchange Margin to be deposited withthe Exchange by the FX Clearing Futures Clearing Member by, as a general rule, 10:00
a.m. on each trading day. If a trading day on which a notice would be made falls on aJapanese bank holiday, the notice shall be made on an immediately subsequent trading
day which is a Japanese banking day.
7.2
The FX Clearing Futures Clearing Member who has received the noticeprescribed in Article 7.1 above shall pay the amount of shortfall according to thecategory of such shortfall of FX Clearing Exchange Margin as set forth below to theFX Clearing Exchange Margin
Settlement Regulations
3

Exchange’s FX Clearing Exchange Margin Settlement Account by the date and time setforth below.
(1)

Shortfall prescribed in Article 6.1(1) of the FX Clearing Margin
Regulations: by 11:00 a.m. on the trading day on which the notice ismade (or, if it is a Japanese bank holiday, on the immediatelysubsequent trading day which is a Japanese banking day)(2)

Shortfall prescribed in Article 6.1(2) of the FX Clearing Margin
Regulations: by 11:00 a.m. on the trading day immediately following
the trading day on which the notice is made (or, if it is a Japanese bankholiday, on the immediately subsequent trading day which is aJapanese banking day)

Article 8.

Notice of Shortfall of FX Clearing Exchange Margin to LP Trading
Member and Payment Thereof

8.1
If a shortfall of FX Clearing Exchange Margin defined in Article 6.2 of the FX
Clearing Margin Regulations arises to an FX Clearing Futures Clearing Member who isan LP Trading Member, the Exchange shall notify the FX Clearing Futures Clearing
Member of the amount of FX Clearing Exchange Margin to be deposited with theExchange by the FX Clearing Futures Clearing Member by, as a general rule, 10:00 a.m.
on each trading day. If a trading day on which a notice would be made falls on aJapanese bank holiday, the notice shall be made on an immediately subsequent trading
day which is a Japanese banking day.
8.2
The FX Clearing Futures Clearing Member who has received the noticeprescribed in Article 8.1 above shall pay the amount of shortfall of the FX Clearing
Exchange Margin (if both of the shortfalls prescribed in Article 6.2 (1) and (2) of the FX
Clearing Margin Regulation arise, the amount equivalent to the larger shortfall) to the
Exchange’s FX Clearing Exchange Margin Settlement Account by 4:00 p.m. on thetrading day on which the notice is made (or, if it is a Japanese bank holiday, on theimmediately subsequent trading day which is a Japanese banking day).

FX Clearing Exchange Margin
Settlement Regulations
4Article 9.

Deadline for Claim for Disbursement of FX Clearing Exchange
Margin and Deadline for Disbursement

9.1
With respect to a claim for drawing of FX Clearing Exchange Margin pursuant
to Articles 8.2 and 8.3 of the FX Clearing Margin Regulations, an FX Clearing Futures
Clearing Member may make a claim for drawing of the FX Clearing Exchange Margin
to the Exchange in the form prescribed by the Exchange during the period from 10:00
a.m. to 2:00 p.m. of each trading day (or, if it is a Japanese bank holiday, of theimmediately subsequent trading day which is a Japanese banking day).
9.2
The Exchange shall, upon receipt of the claim prescribed in Article 9.1 above,
disburse the FX Clearing Exchange Margin in the amount equal to the sum of theamounts so claimed and agreed by the Exchange by 2:00 p.m. on the trading day on
which such claim is made to the FX Clearing Exchange Margin Settlement Accountregistered by the concerned FX Clearing Futures Clearing Member under Article 4.3
hereof after 2:00 p.m. on the same trading day.

CHAPTER IV.
HANDLING OF ADVERSE INCIDENTS

Article 10.

Communication Method upon Inability of Inter-account Transfer

If an FX Clearing Futures Clearing Member who is obligated to pay the FX
Clearing Exchange Margin cannot remit or transfer the amount payable under Article 7.2
or Article 8.2 hereof, the FX Clearing Futures Clearing Member shall communicate suchinability to the Exchange by telephone by the time and date set as the deadline for thepayment of the relevant FX Clearing Exchange Margin and provide the Exchange with awritten notice to the same effect immediately after the telephonic communication.

Article 11.

Refusal of Payment to FX Clearing Futures Clearing Member

FX Clearing Exchange Margin
Settlement Regulations5

If an FX Clearing Futures Clearing Member who is a payee of FX Clearing
Exchange Margin fails to pay or deposit to or with the Exchange the amount of any
money that has become due in accordance with the Trading Regulations, the Special
Provisions for Options, the FX Special Provisions, the Special Provisions for Trading
Regulations for Equity Index Daily Futures Transactions, the FX Clearing Special
Provisions, the Clearing Regulations, the Regulations for Margin and Unsettled MarketDerivatives Contracts, the Regulations for Margin and Unsettled Market Derivatives
Contracts for FX Daily Futures Transactions, the Regulations for Margin and Unsettled
Contracts for Equity Index Daily Futures Transactions, the FX Clearing MarginRegulations, the Japanese Yen Settlement Regulations, the FX Margin Settlement
Regulations, the Equity Index Margin Settlement Regulations or these Regulations, theExchange may refuse to pay any FX Clearing Exchange Margin due and payable to theFX Clearing Futures Clearing Member.

CHAPTER V.
MISCELLANEOUS PROVISIONS

Article 12.

Postponement of Deadline for Notice by the Exchange

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

Article 13.

Documents for FX Clearing Exchange Margins

The documents set forth in Article 6.3 of the FX Clearing Margin Regulations
shall be a margin ledger and other documents that the Exchange considers to be

FX Clearing Exchange Margin
Settlement Regulations
6necessary. Any of such documents shall be promptly submitted to the Exchange
whenever required by the Exchange.

Article 14.

Determination of Necessary Matters, etc.

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

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

Article 15.

Costs and Expenses

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

Article 16.
16.1

Burden of Damages

The Exchange shall not be liable for any damage that may be incurred by an FX

Clearing Futures Clearing Member due to any fault of the concerned FX Clearing
Exchange Margin Settlement Bank.
16.2
If an FX Clearing Futures Clearing Member has failed to make settlement ofFX Clearing Exchange Margins by the deadline set forth herein, the FX Clearing Futures
Clearing Member shall pay a default interest accrued on the amount due which shall becalculated per diem based on a year of 365 days at the rate of 14% per annum.
16.3

Where a deadline for the settlement of FX Clearing Exchange Margins set forth

FX Clearing Exchange Margin
Settlement Regulations
7herein is set as a specific time of a specific day, if an FX Clearing Futures Clearing
Member has failed to make the settlement by that time, the FX Clearing Future Clearing
Member shall pay a default interest accrued for a period of delay including the full day
on which the said deadline falls.

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

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

FX Clearing Exchange Margin
Settlement Regulations
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