[English Translation]

REGULATIONS FORMARGIN AND UNSETTLED CONTRACTS FOREQUITY INDEX DAILY FUTURES TRANSACTIONSTOKYO FINANCIAL EXCHANGE INC.

(This is an English translation of the Regulations for Margin and Unsettled Contracts for
Equity Index Daily Futures Transactions, the original of which has been prepared in theJapanese 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 oflaw 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 content of
this English text.)

1Regulations for Margin and Unsettled Contracts
for Equity Index Daily Futures Transactions

Table of Contents
Page
CHAPTER I. GENERAL PROVISIONS ........................................................................................1
Article 1.

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

Article 2.

Definitions ...................................................................................................................... 1

Article 3.

Purpose of Equity Index Margin..................................................................................... 4

Article 4.

Calculation of Equity Index Margin reference amount .................................................. 4

Article 4-2. Equity Index Margin Reference Amount Applied to Equity Index Market Maker5

CHAPTER II.

RIGHTS AND DUTIES OF EQUITY INDEX DAILY FUTURES TRADINGMEMBER IN REGARD TO EQUITY INDEX MARGINS .....................................6

Section 1. Depositing of Equity Index Exchange Margin .................................................................. 6
Article 5.

Separate Depositing ........................................................................................................ 6

Article 6.

Equity Index Exchange Margin for House Account Positions ....................................... 7

Article 7.

Direct Depositing of Equity Index Exchange Margin .................................................... 8

Article 8.

Advanced Depositing of Equity Index Exchange Margin by Equity Index Daily
Futures Trading Member ................................................................................................ 8

Section 2. Claim for Refund of Equity Index Margin......................................................................... 9
Article 9.

Claim for Refund of Equity Index Margin ..................................................................... 9

Article 10. Refund of Equity Index Exchange Margin ................................................................... 13
Article 11. Drawing of Equity Index Exchange Margin and Restriction Thereon ......................... 14
Article 12. Disbursement of Equity Index Exchange Margin......................................................... 15
Article 13. Payment and Receipt of Money Relevant to Fixed Equity Index Variation ................. 15

CHAPTER III.

EQUITY INDEX MARGIN FOR EQUITY INDEX CUSTOMER ACCOUNTPOSITIONS ............................................................................................................14

Article 14. Purpose of this Chapter................................................................................................. 16
Article 15. Deposit of Equity Index Exchange Margin .................................................................. 16
Article 16. Deposit of Ordering Margin ......................................................................................... 17
Article 17. Equity Index Daily Futures Customer’s Claim for Refund .......................................... 17
Article 18. Equity Index Daily Futures Offeror’s Claim for Refund .............................................. 18
Article 19. Equity Index Daily Futures intermediate broker’s Claim for Refund .......................... 19
Article 20. Drawing of Equity Index Exchange Margin and Restriction thereon........................... 19

Equity Index Margin Regulations
Table of Contents2Article 21. Refund of Equity Index Exchange Margin ................................................................... 20
Article 22. Payment and Receipt of Money Relevant to Fixed Equity Index Variation ................. 20

CHAPTER III-II.

TREATMENT OF EQUITY INDEX MARGIN, ETC. UNDER COMBINEDMANAGEMENT..................................................................................................................................... 21
Article 22-2. Purpose of this Chapter................................................................................................21
Article 22-3 Combined Management................................................................................................21
Article 22-4 Deposit of Equity Index Exchange Margin under Combined Management................22
Article 22-5 Deposit of Ordering Margin under Combined Management........................................23
Article 22-6 Drawing of Equity Index Exchange Margin and Restriction under Combined
Management..............................................................................................................23
Article 22-7. Control System for Loss-cut Transactions under Combined Management..............24

CHAPTER IV. TREATMENT UPON SUSPENSION FROM TRANSACTIONS OR OTHER
MEASURES TAKEN ............................................................................................................................ 24
Article 23. Suspension of Refund of Equity Index Margin upon Suspension from Transactions or
Other Measures Taken .................................................................................................. 24
Article 24. Treatment of Unsettled Contracts based on Orders of Equity Index Daily Futures
Customers of Suspended Equity Index Daily Futures Trading Member, etc. .............. 25
Article 25. Treatment of Equity Index Margin for Transfer of Unsettled Contracts ...................... 26
Article 26. Treatment of Equity Index Margin for Liquidated Contracts ....................................... 28
Article 27. Other Treatment involved in Transfer of Unsettled Contracts ..................................... 28

CHAPTER IV-II. EQUITY INDEX MARGIN FOR POSITION TRANSFER ............................. 28
Article 27-2. Treatment of Equity Index Margin of Equity Index Daily Futures Cusomers for
Position Transfer........................................................................................................... 28
Article 27-3. Treatment of Equity Index Margin of Equity Index Daily Futures Offerors for
Position Transfer........................................................................................................... 28

CHAPTER V. MISCELLANEOUS PROVISIONS ......................................................................28
Article 28. Change in Settlement Method, etc. ............................................................................... 28
Article 29. Management of Equity Index Exchange Margin. .......................................................... 29
Article 30. Standard Time. ............................................................................................................... 29

SUPPLEMENTARY PROVISIONS .................................................................................................30

Equity Index Margin Regulations
Table of Contents3

CHAPTER I.
GENERAL PROVISIONS
Article 1.

Purpose

1.1
These Regulations set forth the matters necessary to stipulate in connection with
margins and unsettled contracts in connection with Equity Index Daily Futures transactions
and other related matters in accordance with Article 1-2 of the Trading Regulations, Article
30 of the Clearing Regulations and Article 11-4 of the Brokering Terms.
1.2
Amendments to Chapter IV shall be effected by obtaining the consent of the
Self-regulatory Committee.

Article 2.

Definitions

The terms used herein shall have the meanings ascribed to them as below.
(1)“Equity Index Exchange Margin” means money deposited with the
Exchange by an Equity Index Daily Futures Trading Member, etc. or an
Equity Index Daily Futures Customer with respect to Equity Index Daily
Futures transactions and bids and offers submitted related thereto for the
purpose of ensuring the performance of the Equity Index Daily Futures
Customer’s or the Equity Index Daily Futures Trading Member’s
obligations relevant to the Equity Index Daily Futures transactions.

(2)

A “deposited Equity Index Exchange Margin” means the amount of theEquity Index Exchange Margin already deposited with the Exchange(including the Equity Index variation with respect to which the payment
or receipt of money has been made pursuant to Article 13 or Article 22
hereof).

(3)“Equity Index Margin” means the sum of (i) the amount of the Equity
Index Exchange Margin already deposited with the Exchange by an

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Equity Index Margin Regulations

Equity Index Daily Futures Trading Member, etc. or an Equity Index
Daily Futures Customer and (ii) the amount of the Fixed Equity Index
variation, if greater than zero, of the Equity Index Daily Futures Trading
Member, etc. or the Equity Index Daily Futures Customer.
(4)

An “Equity Index Margin Amount” means the amount of the Equity
Index Margin.

(5)

A “house account position” and “house account short position” or “houseaccount long position”, as the case may be, means the short or longpositions relevant to an Equity Index Daily Futures contract which has
been executed for its own account of an Equity Index Daily Futures
Trading Member, etc. (except for positions arisen based on an Equity
Index Daily Futures Customer’s order).

(6)

A “Customer account position” and “Customer account short position” or“Customer account long position”, as the case may be, means the shortor long positions relevant to an Equity Index Daily Futures contract
which has been executed based on an Equity Index Daily Futures
Customer’s order.

(7)

An “Equity Index Margin reference amount” means the Japanese Yenamount used as a reference amount for the Equity Index Exchange
Margin to be deposited with the Exchange for a house account positionor for a Customer account position, as calculated pursuant to the methods
set forth in each Item of Article 4.1 or Article 4-2 hereof.

(8)“Equity Index variation” means an Equity Index variation as defined in
Article 90-19 of the Clearing Regulations.

(9)“Fixed Equity Index variation” means the Equity Index variation before
the payment and receipt of money pursuant to Articles 13 and 22 hereofwith respect to the position to be settled.

(10)“Unsettled Equity Index variation” means Equity Index variation otherthan Fixed Equity Index variation.

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Equity Index Margin Regulations

(11)An “Equity Index Margin-Required Amount” means an Equity Index
Margin reference amount calculated for each type of Equity Index Daily
Futures transactions multiplied by the absolute value of the balance
between the short position and long position held per issue as adjusted
based on the amount of Equity Index variation, wherein (i) if the Equity
Index variation is greater than zero, such Equity Index variation shall be
subtracted and (ii) if the Equity Index variation is less than zero, theabsolute value of such Equity Index variation shall be added.

(12)

A “shortfall” in Equity Index Exchange Margin under Articles 5 and 15
hereof means the absolute value of the difference between either theamount of Equity Index Exchange Margin or the deposited Equity Index
Exchange Margin, minus the Equity Index Margin-Required Amount;provided, however, that, if the result of subtraction is a positive number,then the shortfall shall be zero.

(13)

An “Equity Index Daily Futures Trading Member(s), etc.” means Equity
Index Daily Futures Trading Member(s), etc. set forth in Article 2.9 of
the Trading Member Regulations.

(14)

An “Equity Index Daily Futures customer” means a customer (itakusya)
for Equity Index Daily Futures transactions, “Equity Index Daily Futuresofferor” means an offeror (moshikomisya) for Equity Index Daily Futurestransactions, and “Equity Index Daily Futures intermediate broker”
means an intermediate broker (toritsugisya) for Equity Index Daily
Futures transactions. Any or all of Equity Index Daily Futures
customers, Equity Index Daily Futures offerors and Equity Index Daily
Futures intermediate brokers may be individually or collectively referred
to as “Equity Index Daily Futures Customer(s)”.

(15)

A “Daily Futures Clearing Member” means Daily Futures Clearing
Member set forth in Article 3.3 of the Clearing Regulations.

(16)

An “Equity Index Daily Futures Non-Clearing Member” means Equity
Index Daily Futures Trading Member(s), etc. who does not hold Daily
Futures Clearing Membership referred to in Article 3.2 (2) of the
Clearing Regulations.

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Equity Index Margin Regulations

(17)Article 3.

A “trading day” means, unless otherwise specified, a business day (asreferred to in Article 7 of the Special Provisions for Trading Regulations
for Equity Index Daily Futures Transactions (hereinafter referred to as
the “Equity Index Special Provisions”)) for any type of Equity Index
Daily Futures transactions.

Purpose of Equity Index Margin

3.1
Equity Index Margin shall be deposited with the Exchange by an Equity Index
Daily Futures Customer or an Equity Index Daily Futures Trading Member, etc. to ensure
the performance of its obligations relevant to Equity Index Daily Futures transactions.
3.2
In the event of default in any of the obligations set forth in Article 3.1 above, theExchange, the Equity Index Daily Futures Trading Member, etc. or the Equity Index Daily
Futures intermediate broker shall be entitled to exercise the right with respect to the Equity
Index Margin concerned and appropriate the same for the satisfaction of such obligations.

Article 4.

Calculation of Equity Index Margin Reference Amount

4.1
Equity Index Margin reference amount per one (1) trading unit of an Equity Index
Daily Futures transaction shall be calculated for each type of Equity Index Daily Futurestransactions in accordance with the method set forth below.
(1)

A calendar day on which the opening time of the Market Trading Periodof the last trading day of the week belongs shall be the Calculation Date.
With respect to each trading day during eight (8) weeks and one
hundred and four (104) weeks preceding and including the week inwhich a Calculation Date falls, an Equity Index Settlement Price of acertain trading day divided by that of the immediately preceding trading
day shall be obtained. If there are different issues of the same type of
Equity Index Daily Futures transaction during such eight (8) weeks andone hundred and four (104) weeks, the Equity Index Settlement Price of
the issue with the longer period until the Reset Date shall be used.

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Equity Index Margin Regulations

(2)With respect to each of the numerical values for such eight (8) weeks
and one hundred and four (104) weeks obtained in Article 4.1(1) above,
the natural logarithm thereof shall be taken.

(3)

The standard deviation of the numerical values for such eight (8) weeks
and one hundred and four (104) weeks obtained in Article 4.1(2) above
shall be obtained.

(4)

Each of the numerical values for such eight (8) weeks and one hundredand four (104) weeks obtained in Article 4.1(3) above shall be
multiplied by 2.33.

(5)Each of the numerical values for such eight (8) weeks and one hundredand four (104) weeks obtained in Article 4.1(4) above multiplied by the
Equity Index Settlement Price of the trading day on which the
Calculation Date falls and multiplied by a hundred (100) (with respect
to DJIA Daily Futures transaction/contract with Reset Date andNASDAQ-100 Daily Futures transaction/contract with Reset Date,multiplied by ten (10)), with any fraction of less than ten Japanese Yenamount being rounded up, shall be the Equity Index Margin reference
amount.

(6)

The larger of the amounts for such eight (8) weeks and one hundred andfour (104) weeks obtained pursuant to Article 4.1(5) above shall be theEquity Index Margin reference amount.

4.2
The Equity Index Margin reference amount calculated in accordance with Article
4.1 above shall be applied from the first trading day through the last trading day in thesecond week following the week in which the Calculation Date falls.
4.3
If the Exchange determines it inappropriate to determine the Equity Index Margin
reference amount in accordance with the provisions of Articles 4.1 and 4.2 above, theExchange may determine the Equity Index Margin reference amount which the Exchange
deems appropriate from time to time.
4.4
The Exchange shall calculate and announce the Equity Index Margin reference
amount every week.

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Equity Index Margin Regulations

Article 4-2.
Equity Index Margin Reference Amount Applied to Equity Index
Market Maker
4-2.1 Notwithstanding the provisions of Article 4 above, the Equity Index Margin
reference amount per trading unit of Equity Index Daily Futures contract (hereinafter
called “Equity Index Margin reference amount for MM”) which is applied to positions
with respect to MM bid and offer held by an Equity Index Market Maker (meaning an
Equity Index Market Maker defined in Article 2.1 (4) of the Equity Index Special
Provisions; this definition shall similarly apply hereinafter) shall be obtained for each typeof Equity Index Daily Futures contract as the Equity Index Settlement Price on the
Calculation Date (meaning the Calculation Date as defined in Article 4.1 (1) above; thesame shall apply in this Article) (if there are different issues of the same type of Equity
Index Daily Futures contract on the Calculation Date, the Equity Index Settlement Price of
the issue with the longer period until the Reset Date shall be used.) multiplied by one
hundred (100) (with respect to DJIA Daily Futures transaction/contract with Reset Dateand NASDAQ-100 Daily Futures transaction/contract with Reset Date, multiplied by ten(10)) and then by ten hundredth (0.10), with any fraction of less than ten Japanese Yenamount being rounded up.
4-2.2 Notwithstanding the provisions of Article 4-2.1, if the Equity Index Margin
reference amount calculated pursuant to Article 4.1 is larger than the Equity Index Margin
reference amount for MM calculated pursuant to Article 4-2.1 above, the amountequivalent to such Equity Index Margin reference amount shall be the Equity Index Margin
reference amount for MM.
4-2.3 The Equity Index Margin reference amount for MM shall apply from the first
trading day through the last trading day in the second week following the week in which
the relevant Calculation Date falls.
4-2.4 When the Exchange determines that it is inappropriate to determine the Equity
Index Margin reference amount for MM pursuant to Articles 4-2.1, 4-2.2 and 4-2.3 above,it may determine the Equity Index Margin reference amount for MM deemed appropriate
by it from time to time.
4-2.5

The Exchange shall determine the Equity Index Margin reference amount for MM

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Equity Index Margin Regulations

every week and announce the same.

CHAPTER II.
RIGHTS AND DUTIES OF EQUITY INDEX DAILY FUTURESTRADING MEMBERS, ETC. IN REGARD TO EQUITY INDEXMARGINS

Section 1. Depositing of Equity Index Exchange Margin

Article 5.

Separate Depositing

5.1
When a Daily Futures Clearing Member executed an Equity Index Daily Futurescontract in its own name, or when the deposited Equity Index Exchange Margin becomes
deficient, the Daily Futures Clearing Member shall deposit the stated amount of Equity
Index Exchange Margin or the amount equal to the shortfall as the Equity Index Exchange
Margin with the Exchange in accordance with the classifications set forth in Article 5.3
below in the manner separately prescribed by the Exchange, by 10:00 a.m. of the second
trading day following the trading day on which the obligation to deposit the same arises(any trading day that is a Japanese bank holiday shall be excluded for the purpose ofrecognition of the first and second trading days counted as aforesaid).
5.2
Equity Index Daily Futures Non-Clearing Member shall place the stated amountof Equity Index Exchange Margin with its Designated Clearing Member in accordancewith the classifications set forth in Items (4) through (6) of Article 5.3 below.
5.3
Equity Index Exchange Margin to be deposited hereunder shall be classified as set
forth below.
(1)

Those deposited for Daily Futures Clearing Member’s house account;

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Equity Index Margin Regulations

(2)Those deposited for the Customer account position of Daily Futures
Clearing Member by way of direct deposit set forth in Article 7.1 hereof(3)

Those deposited for the Customer account position of Daily Futures
Clearing Member by way of advanced deposit set forth in Article 8.1
hereof(4)

Those deposited for Equity Index Daily Futures Non-Clearing
Member’s house account;(5)

Those deposited for the Customer account position of Equity Index
Daily Futures Non-Clearing Member by way of direct deposit set forthin Article 7.1 hereof(6)

Those deposited for the Customer account position of Equity Index
Daily Futures Non-Clearing Member by way of advanced deposit set
forth in Article 8.1 hereof

5.4
The deposit pursuant to the proviso to Article 6.3 hereof shall be handled inaccordance with the classifications set forth in Article 5.3 (3) above.
5.5
An Equity Index Daily Futures Trading Member, etc. shall furnish the Exchangewith the documents relating to the Equity Index Exchange Margins in accordance with theconditions separately prescribed by the Exchange.

Article 6.

Equity Index Exchange Margin for House Account Positions

6.1
Each Equity Index Daily Futures Trading Member, etc. shall deposit with the
Exchange an Equity Index Exchange Margin in the amount not less than the Equity Index
Margin-Required Amount applicable to its house account positions in the mannerprescribed by the Exchange.
6.2

Equity Index Exchange Margin shall not be deposited in the form of negotiablesecurities, but shall be deposited in the currency of Japanese yen.
6.3

Each Equity Index Daily Futures Non-Clearing Member shall cause its

8Equity Index Margin Regulations

Designated Clearing Member acting as its agent to deposit the Equity Index Exchange
Margin with the Exchange. If the Equity Index Daily Futures Non-Clearing Member fails
to deposit all or part of the Equity Index Exchange Margin, the Designated Clearing
Member may deposit from its own property an amount not less than the said Equity Index
Exchange Margin by way of advanced deposit, until the trading day immediately following
the trading day on which such Equity Index Daily Futures Non-Clearing Member deposits
all of the requisite Equity Index Exchange Margin with such Designated Clearing Member(any trading day that is a Japanese bank holiday shall be excluded for the purpose ofrecognition of the following trading day counted as aforesaid).
6.4
In addition to these Regulations, any other necessary matters with respect toEquity Index Exchange Margin for Equity Index Daily Futures transactions shall beseparately prescribed by the Exchange.

Article 7.

Direct Depositing of Equity Index Exchange Margin

7.1
If an Equity Index Daily Futures Trading Member, etc. receives an Equity Index
Exchange Margin from an Equity Index Daily Futures Customer in accordance with
Article 15 or Article 22-4 hereof, the Equity Index Daily Futures Trading Member, etc.
shall immediately report that effect to the Exchange and deposit the full amount of theEquity Index Exchange Margin with the Exchange as an agent for the Equity Index Daily
Futures Customer in the manner separately prescribed by the Exchange (such manner ofdepositing being hereinafter called “direct deposit(ing)”).
7.2
If the Equity Index Daily Futures Trading Member, etc. who receives an Equity
Index Exchange Margin is an Equity Index Daily Futures Non-Clearing Member, such
Equity Index Exchange Margin shall be deposited with the Exchange through such Equity
Index Daily Futures Non-Clearing Member and its Designated Clearing Member bothacting as agents of the Customer.

Article 8.

Advanced Depositing of Equity Index Exchange Margin by Equity Index
Daily Futures Trading Member, etc.

8.1
Where an Equity Index Daily Futures Customer is required to deposit anadditional amount of Equity Index Exchange Margin pursuant to Article 15 or Article 22-4

9Equity Index Margin Regulations

hereof, if the Equity Index Exchange Margin relevant to the Equity Index Daily Futures
Customer’s order has not yet been deposited with the Exchange, the concerned Equity
Index Daily Futures Trading Member, etc. shall deposit the Equity Index Exchange Margin
in an amount not less than the amount of the shortfall from its own property on behalf ofsuch Equity Index Daily Futures Customer (such manner of depositing being hereinafter
called the “advanced deposit(ing)”) by 10:00 a.m. on the second trading day following the
trading day on which the obligation of additional depositing arises (any trading day that is
a Japanese bank holiday shall be excluded for the purpose of recognition of the first andsecond trading days counted as aforesaid).
8.2
In the case of advanced depositing by an Equity Index Daily Futures Trading
Member, etc. pursuant to in Article 8.1 above, such advanced deposit may be made orcontinued at any time within three (3) trading days after the trading day on which the said
advanced deposit was made (any trading day that is a Japanese bank holiday shall be
excluded for the purpose of recognition of the trading days during the period from thetrading day on which the advanced deposit was made through the third trading day
following such trading day as aforesaid).

Section 2. Claim for Refund of Equity Index Margin

Article 9.

Claim for Refund of Equity Index Margin9.1
Each Equity Index Daily Futures Trading Member, etc. or Equity Index Daily
Futures Customer shall be entitled to claim to the Exchange a refund of the money in theamount equal to the Equity Index Margin Amount deposited with the Exchange.
9.2
Notwithstanding the provisions of Article 9.1 above, a Daily Futures Clearing
Member, an Equity Index Daily Futures Non-Clearing Member or an Equity Index Daily
Futures Customer shall be entitled to claim to the Exchange a refund of the Equity Index
Margin placed or deposited in the manner set forth in each of the following Items,
whichever is applicable, in the amount set forth in the same Item. In this connection, theamount of obligations with respect to Equity Index Daily Futures transactions which
remain outstanding and payable by a Daily Futures Clearing Member to the Exchange
shall be hereinafter called the “Equity Index Daily Futures Clearing Member Outstanding

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Equity Index Margin Regulations

Obligation”, the amount of those payable by an Equity Index Daily Futures Non-Clearing
Member to its Designated Clearing Member shall be hereinafter called the “Equity Index
Daily Futures Non-Clearing Member Outstanding Obligation”, the amount of thosepayable by an Equity Index Daily Futures customer to an Equity Index Daily Futures
Trading Member, etc. with whom it has placed Equity Index Exchange Margin shall behereinafter called the “Equity Index Daily Futures Customer Outstanding Obligation”, theamount of those payable by an Equity Index Daily Futures intermediate broker to an
Equity Index Daily Futures Trading Member, etc. with whom it has placed Equity Index
Exchange Margin shall be hereinafter called the “Equity Index Daily Futures Intermediate
Broker Outstanding Obligation”, or the amount of those payable by an Equity Index Daily
Futures offeror to an Equity Index Daily Futures intermediate broker with whom it has
placed Equity Index Exchange Margin shall be hereinafter called the “Equity Index Daily
Futures Offeror Outstanding Obligation.”(1)

With respect to Equity Index Margin deposited with the Exchange by an
Equity Index Daily Futures Trading Member, etc. for its house accountpositions:(a)Where the claimant is a Daily Futures Clearing Member:
The amount claimable by the Daily Futures Clearing Member
shall be the amount of the Equity Index Margin deposited by itplus the Equity Index Daily Futures Non-Clearing Member
Outstanding Obligation out of the Equity Index Margindeposited by the Equity Index Daily Futures Non-Clearing
Member (and, minus the Equity Index Daily Futures Clearing
Member Outstanding Obligation, if any); and(b)

Where the claimant is an Equity Index Daily Futures
Non-Clearing Member:
The amount claimable by the Equity Index Daily Futures
Non-Clearing Member shall be the amount of the Equity Index
Margin deposited by it minus its Equity Index Daily Futures
Non-Clearing Member Outstanding Obligation.

(2)

With respect to Equity Index Margin deposited by an Equity Index

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Equity Index Margin Regulations

Daily Futures Customer with the Exchange by direct deposit(a)Where the claimant is an Equity Index Daily Futures Customer:
The amount claimable by the Equity Index Daily Futures
Customer shall be the amount of the Equity Index Margindeposited by it minus its Equity Index Daily Futures Customer
Outstanding Obligation (or the Equity Index Daily Futures
Offeror Outstanding Obligation if the Equity Index Daily
Futures Customer is an Equity Index Daily Futures offeror);(b)

Where the claimant is a Daily Futures Clearing Member:
The amount claimable by the Daily Futures Clearing Member
shall be the amount of the Equity Index Margin (less its Equity
Index Daily Futures Clearing Member Outstanding Obligation
relevant to the Equity Index Daily Futures transactions of its
Equity Index Daily Futures Customers, if any) minus: (i) theamount of (a) above, (ii) the amount of the relevant Equity Index
Daily Futures intermediate broker’s claim for refund set forth in
Article 19.1 hereof and (iii) the amount of (c) below; and(c)Where the claimant is an Equity Index Daily Futures
Non-Clearing Member:
The amount claimable by the Equity Index Daily Futures
Non-Clearing Member shall be the amount set forth in (i) and(ii) below:(i)Where the Equity Index Daily Futures Non-Clearing
Member has received the Equity Index Exchange Margin
from an Equity Index Daily Futures customer:
The amount claimable by the Equity Index Daily Futures
Non-Clearing Member shall be the amount of the Equity
Index Daily Futures Customer Outstanding Obligation
minus the Equity Index Daily Futures Non-Clearing

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Equity Index Margin Regulations

Member Outstanding Obligation; and(ii)

Where the Equity Index Daily Futures Non-Clearing
Member has received the Equity Index Exchange Margin
from an Equity Index Daily Futures intermediate broker
or an Equity Index Daily Futures offeror:
The amount claimable by the Equity Index Daily Futures
Non-Clearing Member shall be the amount of the Equity
Index Daily Futures Intermediate Broker Outstanding
Obligation minus the Equity Index Daily Futures
Non-Clearing Member Outstanding Obligation.

(3)

With respect to Equity Index Exchange Margin deposited by an Equity
Index Daily Futures Trading Member, etc. in whole or in part for an
Equity Index Daily Futures Customer’s Equity Index Daily Futurestransactions by advanced deposit in accordance with Article 8 hereof:(a)Where the claimant is a Daily Futures Clearing Member:
The amount claimable by the Daily Futures Clearing Member
shall be the amount of the Equity Index Exchange Margindeposited by it by advanced deposit (less the Equity Index Daily
Futures Clearing Member Outstanding Obligation relevant to theEquity Index Daily Futures Customer with respect to the Equity
Index Margin deposited by the Equity Index Daily Futures
Customer, if any) minus the amount of (b) below; and(b)

Where the claimant is an Equity Index Daily Futures
Non-Clearing Member:
The amount claimable by the Equity Index Daily Futures
Non-Clearing Member shall be the amount of the Equity Index
Margin deposited by it by advanced deposit (less the Equity
Index Daily Futures Non-Clearing Member Outstanding
Obligation relevant to the Equity Index Daily Futures Customer
with respect to the Equity Index Margin deposited by the Equity

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Equity Index Margin Regulations

Index Daily Futures Customer, if any).
9.3
An Equity Index Daily Futures Trading Member, etc. or an Equity Index Daily
Futures Customer shall exercise the claim for refund of the Equity Index Margin bydrawing of the Equity Index Exchange Margin set forth in Article 11 hereof.

Article 10.

Refund of Equity Index Exchange Margin

10.1
If an Equity Index Daily Futures Trading Member, etc. who is an Equity Index
Daily Futures Non-Clearing Member claims a refund to the Exchange with respect to theEquity Index Exchange Margin deposited in accordance with Articles 6.1 and 6.3 hereof,
the Exchange shall make the refund to the Designated Clearing Member acting as an agent
for the Equity Index Daily Futures Non-Clearing Member.
10.2
If a refund is claimed by a person set forth in each Item below with respect to theEquity Index Exchange Margin deposited by it in accordance with Article 7 hereof, theExchange shall refund the Equity Index Exchange Margin in a manner set forth in therelevant Item:(1)

Where the claimant is a Daily Futures Clearing Member:
The Exchange shall make the refund directly to the Daily Futures
Clearing Member(2)

Where the claimant is an Equity Index Daily Futures Non-Clearing
Member:
The Exchange shall make the refund through its Designated Clearing
Member acting as its agent(3)

Where the claimant is an Equity Index Daily Futures Customer (only
who enters into transactions with a Daily Futures Clearing Member):
The Exchange shall make the refund through the Daily Futures Clearing
Member acting as its agent

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Equity Index Margin Regulations

(4)Where the claimant is an Equity Index Daily Futures Customer (only
who enters into transactions with an Equity Index Daily Futures
Non-Clearing Member):
The Exchange shall make the refund through the Equity Index Daily
Futures Non-Clearing Member and its Designated Clearing Member
both acting as its agents

10.3
If a refund is claimed by a person set forth in each Item below with respect to theEquity Index Exchange Margin deposited by it in accordance with Article 8 hereof, theExchange shall refund the Equity Index Exchange Margin in a manner set forth in therelevant Item:(1)

Where the claimant is a Daily Futures Clearing Member:
The Exchange shall make the refund directly to the Daily Futures
Clearing Member(2)

Where the claimant is an Equity Index Daily Futures Non-Clearing
Member:
The Exchange shall make the refund through its Designated Clearing
Member acting as its agent

Article 11.

Drawing of Equity Index Exchange Margin and Restriction Thereon

11.1
No Equity Index Daily Futures Trading Member, etc. shall be allowed to draw theEquity Index Margin for its house account position and Customer account position;
provided, however, that where the Equity Index Margin Amount exceeds the sum of theamounts set forth below calculated for each issue of Equity Index Daily Futurestransactions, the Equity Index Daily Futures Trading Member, etc. shall be allowed to
draw the Equity Index Exchange Margin in an amount not exceeding the excess amount inaccordance with the conditions separately prescribed by the Exchange.
(1)

Equity Index Margin reference amount of an issue of the relevant typeof Equity Index Daily Futures transactions multiplied by the absolute

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Equity Index Margin Regulations

value of the difference between the short positions and the longpositions of such issue held by it(2)

The absolute value of the Fixed Equity Index variation or the Unsettled
Equity Index variation, as the case may be, if it is less than zero

11.2
If the Equity Index Exchange Margin to be drawn pursuant to the Article 11.1
above is for an Equity Index Daily Futures Customer’s position, the drawing claimed by
the Equity Index Daily Futures Trading Member, etc. shall be based on the Equity Index
Daily Futures Customer’s request.
11.3
No Equity Index Daily Futures Trading Member, etc. shall be allowed to draw theEquity Index Exchange Margin deposited with the Exchange by advanced depositing
pursuant to Article 8 hereof; provided, however, where the advanced deposit becomes nolonger necessary, the Equity Index Daily Futures Trading Member, etc. shall be entitled to
draw the Equity Index Exchange Margin to the extent of the amount for which advanced
depositing is no longer required.

Article 12.

Disbursement of Equity Index Exchange Margin

In the event of a claim for drawing of Equity Index Exchange Margin pursuant to
Article 11 hereof, the portion attributable to an Equity Index Daily Futures Customer shallbe disbursed by the Exchange to the Equity Index Daily Futures Trading Member, etc. as
its agent (if the Equity Index Daily Futures Trading Member, etc. is an Equity Index Daily
Futures Non-Clearing Member, the Equity Index Daily Futures Trading Member, etc. andits Designated Clearing Member).

Article 13.

Payment and Receipt of Money Relevant to Fixed Equity Index
Variation

13.1
In the event that the notification or execution of offsetting transaction (meaning
the “notification or execution of offsetting notification” defined in Article 90-18.1 of the
Clearing Regulations; the same interpretation shall equally apply hereinafter) is conductedby an Equity Index Daily Futures Trading Member, etc. for the positions arising under the
Equity Index Daily Futures transactions for its own account and there exists Fixed Equity

16
Equity Index Margin Regulations

Index variation as a consequence of such notification or execution, payment and receipt ofmoney relevant to the Fixed Equity Index variation shall be made by 10:00 a.m. on the
final settlement date (meaning the final settlement date referred to in Articles 4.2 and 4.3of the Equity Index Special Provisions; the same interpretation shall equally apply
hereinafter) of the trading day on which the notification or execution of offsetting
transaction was made.
13.2

The Exchange may change the time and date of the payment and receipt of money

set forth in Article 13.2 above temporarily when it deems necessary to do so. In this case,
the Exchange shall notify the Equity Index Daily Futures Trading Members, etc. to that
effect in advance.

CHAPTER III.
EQUITY INDEX MARGIN FOR CUSTOMER ACCOUNT POSITIONSArticle 14.

Purpose of this Chapter

14.1
The purpose of this Chapter III is to stipulate the relationship between Equity
Index Daily Futures Customers and Equity Index Daily Futures Trading Members, etc.
14.2
Notwithstanding the provisions of Article 14.1 above, the relationship between an
Equity Index Daily Futures Customer who is an Equity Index Daily Futures intermediate
broker (toritsugisya) and an Equity Index Daily Futures offeror (moshikomisya) shall betreated in the same manner as between an Equity Index Daily Futures Trading Member,etc. and an Equity Index Daily Futures customer (itakusya) for the purpose of the treatmentof transactions. In this case, Article 17 hereof shall be excluded in the application of this
Chapter III, and, except for Articles 15.2, 18, 19 and 22, the term “Equity Index Daily
Futures Trading Member(s), etc.” shall be read as “Equity Index Daily Futuresintermediate broker(s)”, the term “Transferee Equity Index Daily Futures Trading
Member(s), etc.” shall be read as “Equity Index Daily Futures intermediate broker(s)acting vis-à-vis Transferee Equity Index Daily Futures Trading Member(s), etc.”, the term
“Equity Index Daily Futures Customer(s)” shall be read as “Equity Index Daily Futures

17
Equity Index Margin Regulationsofferor(s)” and the term “order” place by an Equity Index Daily Futures Customer or any
equivalent expression thereof shall be read as “offer for intermediation of ordering”
respectively.

Article 15.
15.1

Deposit of Equity Index Exchange Margin

If an Equity Index Daily Futures Customer’s amount of Equity Index Exchange

Margin falls short of the Equity Index Margin-Required Amount on any trading day andthus the Equity Index Exchange Margin becomes deficient, the concerned Equity Index
Daily Futures Trading Member, etc. shall notify the Equity Index Daily Futures Customerof the amount of the shortfall. In this case, the Equity Index Daily Futures Customer
shall place or deposit the sum not less than the notified amount in the currency of Japanese
yen with the Equity Index Daily Futures Trading Member, etc. as the Equity Index
Exchange Margin, not later than the time and date designated by the Equity Index Daily
Futures Trading Member, etc, which date shall fall on or prior to the second trading day
following the trading day on which such shortfall arises (any trading day that is a Japanesebank holiday shall be excluded for the purpose of recognition of the first and second
trading days counted as aforesaid).
15.2
Where the provisions of Article 15.1 above apply in accordance with Article 14.2
hereof, the Equity Index Daily Futures intermediate broker shall, acting as agent for an
Equity Index Daily Futures offeror, place or deposit with the Equity Index Daily Futures
Trading Member, etc. the full amount of the Equity Index Exchange Margin received fromthe Equity Index Daily Futures offeror.
15.3
An Equity Index Daily Futures Customer shall not deposit the Equity Index
Exchange Margin in the form of negotiable securities, but shall deposit the same in thecurrency of Japanese yen.

Article 16.
16.1

Deposit of Ordering Margin

Before submitting a bid or offer for an Equity Index Daily Futures contract basedon an Equity Index Daily Futures Customer’s order, the concerned Equity Index Daily
Futures Trading Member, etc. may require that the Equity Index Daily Futures Customer
deposit the Equity Index Exchange Margin as a precondition for such submission

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Equity Index Margin Regulations

(hereinafter called the “Ordering Margin”) with the Exchange.
16.2
An Equity Index Daily Futures Trading Member, etc. shall demand of anindividual customer (excluding the qualified institutional investors set forth in Article 2,
Paragraph 31, Item 1 of the Financial Instruments and Exchange Act and those deemed as
the specified investors pursuant to Article 34-4 of the same Act) the deposit of Ordering
Margin with the Exchange.
16.3
For the purpose of calculating an amount of Ordering Margin, if a loss is incurredby the Equity Index Daily Futures Customer when the Equity Index Daily Futures contractof such Equity Index Daily Futures Customer is settled, the Equity Index Daily Future
Trading Member, etc. shall deduct the amount of such loss and, if a gain arises from thesettlement thereof, the Equity Index Daily Futures Trading Member, etc. may add theamount of such gain.
16.4
The amount of the Ordering Margin set forth in Articles 16.1,16.2 and 16.3 above
shall be determined within a reasonable range by each Equity Index Daily Futures Trading
Member, etc. based on the Equity Index Margin reference amount.

Article 17.

Equity Index Daily Futures Customer’s Claim for Refund

17.1
If an Equity Index Daily Futures customer deposited the Equity Index Margin, it
shall be entitled to claim to the Exchange a refund of the Equity Index Margin in theamount equal to the Equity Index Margin Amount minus the Equity Index Daily Futures
Customer Outstanding Obligation.
17.2
No Equity Index Daily Futures customer shall be allowed to exercise its claim forrefund of the Equity Index Margin directly to the Exchange, unless the Exchange deems it
necessary, and the Equity Index Daily Futures customer’s claim for refund as aforesaid
shall be exercised through the concerned Equity Index Daily Futures Trading Member, etc.
(or with respect to Securities, etc. Clearing-Brokering Contracts, the Equity Index Daily
Futures Non-Clearing Member through which the Equity Index Exchange Margin has beenplaced and its Designated Clearing Member).

Article 18.

Equity Index Daily Futures Offeror’s Claim for Refund

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Equity Index Margin Regulations

18.1
If an Equity Index Daily Futures offeror deposited the Equity Index Margin, it
shall be entitled to claim to the Exchange a refund of the Equity Index Margin in theamount equal to the Equity Index Margin Amount minus the Equity Index Daily Futures
Offeror Outstanding Obligation.
18.2
No Equity Index Daily Futures offeror shall be allowed to exercise its claim forrefund of the Equity Index Margin directly to the Exchange, unless the Exchange deems it
necessary, and the Equity Index Daily Futures offeror’s claim for refund as aforesaid shallbe exercised through the concerned Equity Index Daily Futures intermediate broker andthe Equity Index Daily Futures Trading Member, etc. (or with respect to Securities, etc.
Clearing-Brokering Contracts, the Equity Index Daily Futures Non-Clearing Member who
accepted the order of Equity Index Daily Futures contract from the Equity Index Daily
Futures intermediate broker and its Designated Clearing Member).

Article 19.

Equity Index Daily Futures intermediate broker’s Claim for Refund

19.1
If an Equity Index Daily Futures offeror deposited the Equity Index Margin, theconcerned Equity Index Daily Futures intermediate broker shall be entitled to claim to the
Exchange a refund of the Equity Index Margin in the amount equal to the Equity Index
Daily Futures Offeror Outstanding Obligation (less the Equity Index Daily Futures
Intermediate Broker Outstanding Obligation relevant to the Equity Index Daily Futurestransactions of the Equity Index Daily Futures offeror, if any).
19.2
No Equity Index Daily Futures intermediate broker shall be allowed to exercise its
claim for refund of the Equity Index Margin directly to the Exchange, unless the Exchange
deems it necessary, and the Equity Index Daily Futures intermediate broker’s claim forrefund as aforesaid shall be exercised through the concerned Equity Index Daily Futures
Trading Member, etc. (or with respect to Securities, etc. Clearing-Brokering Contracts, theEquity Index Daily Futures Non-Clearing Member who accepted the order of Equity Index
Daily Futures contract from the Equity Index Daily Futures intermediate broker and its
Designated Clearing Member).

Article 20.

Drawing of Equity Index Exchange Margin and Restriction thereon

20
Equity Index Margin Regulations

20.1
An Equity Index Daily Futures Trading Member, etc. shall not allow an Equity
Index Daily Futures Customer to draw any Equity Index Margin for the Equity Index Daily
Futures transactions based on the Equity Index Daily Futures Customer’s order; provided,
however, that when the Equity Index Margin Amount exceeds the sum of the amounts set
forth below calculated for each issue of Equity Index Daily Futures transactions, theEquity Index Daily Futures Trading Member, etc. may permit drawing in an amount notexceeding the excess amount.
(1)

Equity Index Margin reference amount of an issue of the relevant typeof Equity Index Daily Futures transactions multiplied by the absolutevalue of the difference between the short positions and the longpositions of such issue held by it(2)

The absolute value of the Fixed Equity Index variation or the Unsettled
Equity Index variation, as the case may be, if it is less than zero

20.2
An Equity Index Daily Futures Trading Member, etc. may add the amountdeemed necessary by it to the Equity Index Margin reference amount referred to in Article
20.1(1) above.
20.3
If an Equity Index Daily Futures Trading Member, etc. adds the amount deemednecessary by it to the Equity Index Margin reference amount under Article 20.2 above, theterm “Equity Index Margin reference amount” in Article 20.1(1) hereof shall be read as“the sum of the Equity Index Margin reference amount and the amount added by the
Equity Index Daily Futures Trading Member, etc.”

Article 21.

Refund of Equity Index Exchange Margin

In the case that Equity Index Daily Futures transactions based on an Equity Index
Daily Futures Customer’s order ceased to exist as a result of the notification or executionof offsetting transaction (meaning the “notification or execution of offsetting notification”
defined in Article 90-18.1 of the Clearing Regulations; the same interpretation shallequally apply hereinafter) for the unsettled Equity Index Daily Futures transactions basedon the Equity Index Daily Futures Customer’s order, that the deposit of ordering margin is
no longer required due to cancellation of the bids and/or offers for an Equity Index Daily

21
Equity Index Margin Regulations

Futures contract, or that otherwise there exists the Equity Index Exchange Marginavailable for drawing under Article 20 above, an Equity Index Daily Futures Trading
Member, etc. shall, upon instruction of the claim by the Equity Index Daily Futures
Customer for drawing of the Equity Index Exchange Margin from the Exchange, refund
the Equity Index Exchange Margin for which it is obliged to make refund to the Equity
Index Daily Futures Customer without delay.

Article 22.

Payment and Receipt of Money Relevant to Fixed Equity Index
Variation

22.1
In the event that the notification or execution of offsetting transaction isconducted by an Equity Index Daily Futures Trading Member, etc. for the positions arisingunder the Equity Index Daily Futures transactions based on an Equity Index Daily Futures
Customer’s order and there exists Fixed Equity Index variation as a consequence of such
notification or execution, payment and receipt of money relevant to the Fixed Equity Index
variation shall be made by 10:00 a.m. on the final settlement date of the trading day on
which the notification or execution of offsetting transaction was made.
22.2
The Exchange may change the time and date of the payment and receipt of money
set forth in Article 22.1 above temporarily when it deems it necessary. In this case, it
shall notify the Equity Index Daily Futures Trading Members, etc. of that effect inadvance.

CHAPTER III-II.
TREATMENT OF EQUITY INDEX MARGIN, ETC.
UNDER COMBINED MANAGEMENT

Article 22-2.

Purpose of this Chapter

The purpose of this Chapter III-II is to stipulate the treatment of the Equity Index
Exchange Margin and the FX Exchange Margin (meaning the FX Exchange Margin as

22
Equity Index Margin Regulations

defined in Article 2(1) of the Regulations for Margin and Unsettled Contracts for FX Daily
Futures Transactions (hereinafter called the “FX Margin Regulations”); whichinterpretation shall equally apply hereinbelow) to be dealt with in an FX/Equity Index
Daily Futures Transactions Account for Combined Management defined in Article 6-2-4.1of the Brokering Terms between an Equity Index Daily Futures Trading Member who
conducts Combined Management provided in Article 22-3.2 below (hereinafter called“Trading Member Conducting Combined Management”) and an Equity Index Daily
Futures Customer who has established such FX/Equity Index Daily Futures Transactions
Account for Combined Management (hereinafter called “Customer under Combined
Management”).

Article 22-3

Combined Management

22-3.1 An Equity Index Daily Futures Trading Member may manage Equity Index
Exchange Margin and FX Exchange Margin deposited by an Equity Index Daily Futures
Customer in an integrated manner in accordance with these Regulations, FX Margin
Regulations, the Brokering Terms and other conditions prescribed by the Exchange inorder to make up a shortfall of either one of the said margins.
22-3.2 The management provided in Article 22-3.1 above (hereinafter called the“Combined Management”) may be conducted only with the consent of a Customer under
Combined Management who has submitted an Agreement Concerning Establishment of
FX/Equity Index Daily Futures Transactions Account for Combined Management.

Article 22-4
Deposit of Equity Index Exchange Margin under Combined
Management
22-4.1 Notwithstanding Article 15.1 hereof, if the amount of Equity Index Exchange
Margin of a Customer under Combined Management added by the FX Excess Capacity
Amount (if such FX Excess Capacity Amount is negative, it shall be deemed as zero) falls
short of the Equity Index Margin-Required Amount and thus the Equity Index Exchange
Margin becomes deficient, a Trading Member Conducting Combined Management shallnotify the Customer under Combined Management of the amount of such shortfall. In
this case, the Customer under Combined Management shall place or deposit a sum not lessthan the amount of the shortfall, in the currency of Japanese Yen, with the Trading Member

23
Equity Index Margin Regulations

Conducting Combined Management as Equity Index Exchange Margin, not later than thetime and date designated by the Trading Member Conducting Combined Management,
which date shall fall before the second trading day following the trading day on which theshortfall arises (any trading day that is a Japanese bank holiday shall be excluded for the
purpose of recognition of the first and second trading days counted as aforesaid.)
22-4.2 If all or part of the FX Excess Capacity Amount is applied to the shortfall of theEquity Index Exchange Margin prescribed in Article 15 in accordance with Article 22-4.1
above, the amount so applied to the shortfall (up to the deposited FX Exchange Margin)
shall be added to the deposited Equity Index Exchange Margin and deducted from thedeposited FX Exchange Margin of the Customer under Combined Management.
22-4.3 For the purpose of this Article 22-4, the “FX Excess Capacity Amount” means anamount determined by a Trading Member Conducting Combined Management up to theamount after an adjustment of Fixed FX variation as defined in Article 2(9) of FX Margin
Regulations to a deposited FX Exchange Margin as defined in Article 2(2) of FX Margin
Regulations (if Fixed FX variation is a positive number, the absolute value thereof shall be
added and, if it is a negative number, the absolute value thereof shall be deducted) added
by a gain to be obtained by a Customer under Combined Management or deducted by aloss to be incurred by such Customer under Combined Management upon settlement of FX
Daily Futures transactions, deducted by the larger of the total short positions or the total
long positions of the FX Daily Futures transactions held by the Customer under Combined
Management multiplied by an FX Margin reference amount calculated for each type of FX
Daily Futures transaction.

Article 22-5

Deposit of Ordering Margin under Combined Management

22-5.1 Notwithstanding Article 16.1 hereof, with respect to an Ordering Margin that a
Trading Member Conducting Combined Management requires a Customer under
Combined Management to deposit, the aggregate amount of the Equity Index Exchange
Margin and the FX Excess Capacity Amount of the Customer under Combined
Management shall meet the amount required as an Ordering Margin.
22-5.2 If all or part of the FX Excess Capacity Amount is applied to the Ordering Margin
in accordance with Article 22-5.1 above, the amount so applied to the Ordering Margin (upto the deposited FX Exchange Margin) shall be added to the deposited Equity Index

24
Equity Index Margin Regulations

Exchange Margin and deducted from the deposited FX Exchange Margin of the Customer
under Combined Management.

Article 22-6
Drawing of Equity Index Exchange Margin and Restriction under
Combined Management
22-6.1 Notwithstanding the proviso to Article 11.1 and the proviso to Article 20.1, aTrading Member Conducting Combined Management may allow a Customer under
Combined Management to draw the Equity Index Exchange Margin in an amount notexceeding the lessor of the amounts set forth in the following items:(1)

Equity Index Exchange Margin deducted by the total of the following
amounts calculated for each issue of Equity Index Daily Futurestransactions:(a)Equity Index Margin reference amount of an issue of therelevant type of Equity Index Daily Futures transactions
multiplied by the absolute value of the difference between the
short positions and the long positions of such issue held by the
Customer under Combined Management; and

(b)

(2)

The absolute value of the Fixed Equity Index variation or
Unsettled Equity Index variation, as the case may be, if it is lessthan zero

The amount provided in Article 22-6.1(1) above added by the FX
Margin Amount and deducted by the total of the following amounts:(a)

FX Margin reference amount multiplied by the larger of the total
short positions or the total long positions held by the Customer
under Combined Management; and(b)

The absolute value of the Fixed FX variation or Unsettled FX
variation, as the case may be, if it is less than zero

22-6.2 Equity Index Margin reference amount set forth in Article 22-6.1(1)(a) and FX

25
Equity Index Margin Regulations

Margin reference amount set forth in Article 22-6.1(2)(a) may be increased, within areasonable range, to an amount to be determined by a Trading Member Conducting
Combined Management.

Article 22-7.
Control System for Loss-cut Transactions under Combined
Management
A Trading Member Conducting Combined Management shall establish andmaintain an appropriate system for controlling loss-cut transactions under Combined
Management which it enters into with a Customer under Combined Management inaccordance with the Brokering Terms.

CHAPTER IV.
TREATMENT UPON SUSPENSION FROM TRANSACTIONS OR
OTHER MEASURES TAKEN

Article 23.

Suspension of Refund of Equity Index Margin upon Suspension fromTransactions or Other Measures Taken

If an Equity Index Daily Futures Trading Member, etc. becomes or is deemed
likely to become insolvent, and is thereby ordered suspension from or restriction ontransactions or other measures (hereinafter called the “Suspension from Transactions or
Other Measures”) pursuant Articles 61 through 63 of the Trading Member Regulations, theExchange shall temporarily refrain from refunding the Equity Index Margin to the Equity
Index Daily Futures Trading Member, etc. subject to the Suspension from Transactions or
Other Measures (hereinafter called the “Suspended Equity Index Daily Futures Trading
Member, etc.”) and its Equity Index Daily Futures Customers as well as the Equity Index
Daily Futures Trading Members, etc. who deposited the Equity Index Exchange Margins
through the Suspended Equity Index Daily Futures Trading Member, etc. acting as theiragent and their Equity Index Daily Futures Customers.

26
Equity Index Margin Regulations

Article 24.

Treatment of Unsettled Contracts based on Orders of Equity Index
Daily Futures Customers of Suspended Equity Index Daily Futures
Trading Member, etc.

24.1
Once the Suspension from Transaction or Other Measures are imposed on a
Suspended Equity Index Daily Futures Trading Member, etc., the Suspended Equity Index
Daily Futures Trading Member, etc. shall forthwith informs its Equity Index Daily Futures
Customers (except for Equity Index Daily Futures offerors, this exception shall apply
hereinafter in Articles 21 through 26 hereof) to that effect. If the Exchange determines torequire transfer to other Equity Index Daily Futures Trading Member, etc. (hereinafter
called the “Transfer”) or liquidation pursuant to Article 38.1 of the Trading Member
Regulations with respect to the unsettled contracts based on any order by the Equity Index
Daily Futures Customer of the Suspended Equity Index Daily Futures Trading Member,etc, the Suspended Equity Index Daily Futures Trading Member, etc. shall inform those
Equity Index Daily Futures Customers of that effect and other necessary matters as well.
In this case, the Equity Index Daily Futures intermediate brokers notified by the Equity
Index Daily Futures Trading Member, etc. shall make the same notification as such
notification to the Equity Index Daily Futures offerors.
24.2
The Transfer set forth in Article 24.1 above shall be implemented when any of theEquity Index Daily Futures Customers of the Suspended Equity Index Daily Futures
Trading Member, etc. requests another Equity Index Daily Futures Trading Member, etc. toaccept such Transfer (hereinafter called the “Transferee Equity Index Daily Futures
Trading Member, etc.”) and notifies the Suspended Equity Index Daily Futures Trading
Member, etc. of the acceptance of the Transferee Equity Index Daily Futures Trading
Member, etc. by the time and date designated by the Exchange and the Transferee Equity
Index Daily Futures Trading Member, etc. delivers a written consent to the Transfer to the
Exchange by the time and date designated by the Exchange. In this case, the Exchange
shall cause the prices designated by the Exchange to be accepted as the contract prices of
the unsettled contracts thus transferred, and the Equity Index Daily Futures Customers
shall open an Equity Index Daily Futures Transactions Account set forth in Article 6-2.2 of
the Brokering Terms with the Transferee Equity Index Daily Futures Trading Member, etc.
24.3
The liquidation set forth in Article 24.1 above shall be implemented in the mannerprescribed by Exchange, when the Suspended Equity Index Daily Futures Trading
Member, etc. informs the Exchange of such liquidation based on its Equity Index Daily

27
Equity Index Margin Regulations

Futures Customer’s instruction given by the time and date designated by the Exchange.
24.4
If the Equity Index Daily Futures Customer does not perform the matters set forthin Article 24.2 above by the time and date designated by the Exchange, or it does not givethe liquidation instruction set forth in Article 24.3 above by the time and date designatedby the Exchange, the Exchange shall liquidate the unsettled contracts based on the Equity
Index Daily Futures Customer’s order for such Equity Index Daily Futures Customer’s
account in the manner prescribed by the Exchange.
24.5
Where the Equity Index Daily Futures Customer is an Equity Index Daily Futuresintermediate broker, and if the Suspended Equity Index Daily Futures Trading Member,etc. has accepted an order for Equity Index Daily Futures contract based on the Equity
Index Daily Futures offeror’s order intermediated by the Equity Index Daily Futuresintermediate broker, and the obligations to such Suspended Equity Index Daily Futures
Trading Member, etc. owed by the Equity Index Daily Futures intermediate broker under
the Equity Index Daily Futures contract have become due and payable by acceleration ofdebt, the provisions of Articles 24.2 through 24.4 above shall apply mutatis mutandis to theEquity Index Daily Futures offeror. In this case, the “Equity Index Daily Futures
Customer” as used in Articles 24.2 through 24.4 above shall be read as “Equity Index
Daily Futures offeror”, and “Suspended Equity Index Daily Futures Trading Member, etc.”
as used in Articles 24.2 and 24.3 shall be read as “Equity Index Daily Futures intermediate
broker.”

Article 25.

Treatment of Equity Index Margin for Transfer of Unsettled

Contracts
25.1
In the case of the Transfer set forth in Article 24.2 above, the Equity Index Margin
in the amount equivalent to the claim for refund of the Equity Index Daily Futures
Customer is deemed to have been deposited with the Exchange through the Transferee
Equity Index Daily Futures Trading Member, etc. acting as its agent (if the Transferee
Equity Index Daily Futures Trading Member, etc. is an Equity Index Daily Futures
Non-Clearing Member, the Transferee Equity Index Daily Futures Trading Member, etc.
and its Designated Clearing Member; the same interpretation shall equally apply in
Articles 25.2, 25.4 through 25.6 and 25.8).
25.2

In the case of the Transfer set forth in Article 24.2 above, the Equity Index Daily

28
Equity Index Margin Regulations

Futures Customer shall exercise its claim for refund of the Equity Index Margin to the
Exchange through the Transferee Equity Index Daily Futures Trading Member, etc. acting
as its agent.
25.3
In the case of the Transfer set forth in Article 24.2 above, if the amount of theEquity Index Margin falls short of the required amount determined by the Transferee
Equity Index Daily Futures Trading Member, etc, the Equity Index Daily Futures
Customer shall deposit an amount not less than the shortfall as the Equity Index Exchange
Margin with the Transferee Equity Index Daily Futures Trading Member, etc.
25.4
In the case of the Transfer set forth in Article 24.2 above, the Exchange shallmake the refund of the Equity Index Margin to the Equity Index Daily Futures Customer
through the Transferee Equity Index Daily Futures Trading Member, etc. acting as its
agent.
25.5
In the case of the Transfer set forth in Article 24.2 above as applied mutatis
mutandis under Article 24.5 above, the Equity Index Margin of the Equity Index Daily
Futures offeror shall be deemed to have been deposited with the Exchange through theTransferee Equity Index Daily Futures Trading Member, etc. acting as its agent.
25.6
In the case of the Transfer set forth in Article 24.2 above as applied mutatis
mutandis under Article 24.5 above, the Equity Index Daily Futures offeror shall exercise
its claim for refund of the Equity Index Margin to the Exchange through the Transferee
Equity Index Daily Futures Trading Member, etc. acting as its agent.
25.7
In the case of the Transfer set forth in Article 24.2 above as applied mutatis
mutandis under Article 24.5 above, if the amount of the Equity Index Margin falls short of
the required amount determined by the Transferee Equity Index Daily Futures Trading
Member, etc, the Equity Index Daily Futures offeror shall deposit an amount not less than
the shortfall as the Equity Index Exchange Margin with the Transferee Equity Index Daily
Futures Trading Member, etc.
25.8
In the case of the Transfer set forth in Article 24.2 above as applied mutatis
mutandis under Article 24.5 above, the Exchange shall make the refund of the Equity
Index Margin to the Equity Index Daily Futures offeror through the Transferee Equity
Index Daily Futures Trading Member, etc. acting as its agent.

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Equity Index Margin Regulations

Article 26.

Treatment of Equity Index Margin for Liquidated Contracts

26.1
In the case of the liquidation of unsettled contracts set forth in Article 24.3 above,
an Equity Index Daily Futures Trading Member, etc. or an Equity Index Daily Futures
Customer shall, notwithstanding the provisions set forth in Article 17.2 hereof, be entitled
to exercise its claim for refund of the Equity Index Margin directly to the Exchange
respectively up to the amount set forth in Article 17.1 hereof.
26.2
In the case of the liquidation of unsettled contracts set forth in Article 24.3 above
as applied mutatis mutandis under Article 24.5 above, an Equity Index Daily Futuresofferor shall, notwithstanding the provisions set forth in Article 18.2 hereof, be entitled toexercise its claim for refund of the Equity Index Margin directly to the Exchange up to theamount set forth in Article 18.1 hereof.
26.3
When the claim for refund of the Equity Index Margin is exercised pursuant to
Articles 26.1 or 26.2 above, the Exchange shall make the refund after elapse of the period
necessary for determination of the amount of the claim.

Article 27.

Other Treatment involved in Transfer of Unsettled Contracts

In addition to the provisions of Articles 14 through 26 hereof, any mattersnecessary for transfer of the unsettled contracts shall from time to time be prescribed by
the Exchange.

CHAPTER IV-II.
EQUITY INDEX MARGIN FOR POSITION TRANSFER

Article 27-2.
Treatment of Equity Index Margin of Equity Index Daily Futures
Cusomers for Position Transfer

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Equity Index Margin Regulations

27-2.1 In the case of Transfer of unsettled contracts of an Equity Index Daily Futures
customer to another Equity Index Daily Futures Trading Member, etc. by the positiontransfer (meaning the position transfer defined in Article 91 of the Clearing Regulations;the same shall apply hereinbelow), the Equity Index Margin deposited or placed by the
Equity Index Daily Futures customer shall be deemed to have been deposited in theamount set forth in Article 17.1 hereof through the Transferee Equity Index Daily Futures
Trading Member, etc. acting as its agent (if the Transferee Equity Index Daily Futures
Trading Member, etc. is an Equity Index Daily Futures Non-Clearing Member, theTransferee Equity Index Daily Futures Trading Member, etc. and its Designated Clearing
Member; the same interpretation shall equally apply in Article 27-2.2).
27-2.2 In the case set forth in Article 27-2.1 above, the Equity Index Daily Futures
customer shall exercise its claim for refund of the Equity Index Margin to the Exchange
through the Transferee Equity Index Futures Trading Member, etc. acting as its agent
notwithstanding the provisions of Article 17.2.
27-2.3 If the amount of the Equity Index Margin deemed as deposited by the Equity
Index Daily Futures customer pursuant to Article 27-2.1 falls short of the required amountdetermined by the Transferee Equity Index Daily Futures Trading Member, etc., the Equity
Index Daily Futures customer shall deposit an amount not less than the shortfall as theEquity Index Exchange Margin with the Transferee Equity Index Daily Futures Trading
Member, etc.

Article 27-3.

Treatment of Equity Index Margin of Equity Index Daily Futures

Offerors for Position Transfer27-3.1 In the case of the Transfer of unsettled contracts of an Equity Index Daily Futuresofferor to another Equity Index Daily Futures Trading Member, etc. by the positiontransfer, the Equity Index Margin deposited or placed by the Equity Index Daily Futuresofferor shall be deemed to have been deposited in the amount specified in Article 18.1
through the Transferee Equity Index Daily Futures Trading Member, etc. acting as its agent(if the Transferee Equity Index Daily Futures Trading Member, etc. is an Equity Index
Daily Futures Non-Clearing Member, the Transferee Equity Index Daily Futures Trading
Member, etc. and its Designated Clearing Member; the same interpretation shall equally
apply in Article 27-3.2).

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27-3.2 In the case set forth in Article 27-3.1 above, the Equity Index Daily Futuresofferor shall exercise its claim for refund of the Equity Index Margin to the Exchange
through the concerned Equity Index Daily Futures intermediate broker or the Transferee
Equity Index Futures Trading Member, etc. acting as its agent notwithstanding theprovisions of Article 18.2.
27-3.3 If the amount of the Equity Index Margin deemed as deposited by the Equity
Index Daily Futures offeror pursuant to Article 27-3.1 falls short of the required amountdetermined by the Transferee Equity Index Daily Futures Trading Member, etc., the Equity
Index Daily Futures offeror shall deposit an amount not less than the shortfall as the Equity
Index Exchange Margin with the Transferee Equity Index Daily Futures Trading Member,etc.

CHAPTER V.
MISCELLANEOUS PROVISIONS

Article 28.

Change in Settlement Method, etc.

If the Exchange determines the conditions for postponement of the settlement
dates or the clearing terms and conditions for Equity Index Daily Futures transactions inaccordance with Article 99 or 100 of the Clearing Regulations, the Exchange may change
the deadline (time and date) for depositing of Equity Index Exchange Margin under
Articles 6 through 8 hereof, drawing of Equity Index Exchange Margin under Article 11
hereof, disbursement of Equity Index Exchange Margin under Article 12 hereof, andpayment and receipt of money relevant to Fixed Equity Index variation under Articles 13
and 22 hereof, and take necessary measures incidental to such changes.

Article 29.

Management of Equity Index Exchange Margin

29.1
When the Exchange accepts deposit of Equity Index Exchange Margin in cash,
the Exchange shall manage the same in the manners prescribed by laws and regulations.

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Equity Index Margin Regulations

29.2
With respect to an Equity Index Exchange Margin deposited by any Equity Index
Daily Futures Trading Member, etc. or Equity Index Daily Futures Customer, no interest orother consideration shall be payable by the Exchange.

Article 30.
30.1Standard TimeTime indicated in these Regulations is a Japan time.

30.2
A day or month indicated in these Regulations is a day or month per calendar ofJapan.

SUPPLEMENTARY PROVISIONS
The amended Regulations shall take effect as from August 5, 2013.

SUPPLEMENTARY PROVISIONS
The amended Regulations shall take effect as from February 27, 2017.

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

SUPPLEMENTARY PROVISIONS
The amended Regulations shall take effect as from June 26, 2017.

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Equity Index Margin Regulations

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

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

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

SUPPLEMENTARY PROVISIONS
1.

The amended Regulations shall take effect as from February 28, 2022.

2.
Notwithstanding the provisions of each Item of Article 4.1 hereof, during theperiod from the effective date of the amended Regulations to April 28, 2022, an Equity
Index Margin reference amount per one (1) trading unit of each of Nikkei 225 Daily
Futures transaction/contract with Reset Date, FTSE 100 Daily Futurestransaction/contract with Reset Date, DAX® Daily Futures transaction/contract with
Reset Date, DJIA Daily Futures transaction/contract with Reset Date, Gold ETF Daily
Futures transaction/contract with Reset Date and WTI ETF Daily Futurestransaction/contract with Reset Date shall be calculated in accordance with the method set
forth below.
(1)

A calendar day on which the opening time of the Market Trading Periodof the last trading day of the week belongs shall be the Calculation Date.

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Equity Index Margin Regulations

With respect to each trading day during twenty four (24) weeks
preceding and including the week in which a Calculation Date falls, an
Equity Index Settlement Price of a certain trading day divided by that of
the immediately preceding trading day shall be obtained. If there aredifferent issues of the same type of Equity Index Daily Futures contract,during such twenty four (24) weeks, the Equity Index Settlement Priceof the issue with the longer period until the Reset Date shall be used.
(2)

With respect to each of the numerical values obtained in the preceding
Item, the natural logarithm thereof shall be taken.

(3)

The standard deviation of the numerical values obtained in thepreceding Item shall be obtained.

(4)

The numerical values obtained in the preceding Item shall be multipliedby 2.58.

(5)

The numerical values obtained in the preceding Item multiplied by the
Equity Index Settlement Price of the trading day on which the
Calculation Date falls and multiplied by a hundred (100) (with respect
to DJIA Daily Futures transaction/contract with Reset Date, multipliedby ten (10)), with any fraction of less than ten Japanese Yen amountbeing rounded up, shall be the Equity Index Margin reference amount.

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Equity Index Margin Regulations