[English Translation]

REGULATIONS FOR MARGIN AND UNSETTLED MARKETDERIVATIVES CONTRACTSTOKYO FINANCIAL EXCHANGE INC.

(This is an English translation of the Regulations for Margin and Unsettled Market
Derivatives Contracts, 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 themeaning of the words, provisions and stipulations of these Regulations for Margin and
Unsettled Market Derivatives Contracts 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.)
SPAN® used herein is a registered trademark of Chicago Mercantile Exchange Inc. andused herein under license. Chicago Mercantile Exchange Inc. assumes no liability inconnection with the use of SPAN® by any person or entity.

Regulations for Margin and Unsettled Market Derivatives Contracts

Table of Contents
Page
CHAPTER I. GENERAL PROVISIONS........................................................................... 1
Article 1.Purpose ..................................................................................................................... 1
Article 2.Definitions ................................................................................................................ 1
Article 3.(Deleted) ................................................................................................................... 4
Article 4.Purpose of Margin ................................................................................................... 4
Article 5.Calculation of Margin Requirement by SPAN®................................................. 5
CHAPTER II. RIGHTS AND DUTIES OF CLEARING MEMBER OR TRADINGMEMBER IN REGARD TO MARGINS ............................................... 5
Section 1. Depositing of Exchange Margin, etc. ............................................................ 6
Article 6.Separate Depositing ................................................................................................ 6
Article 7.Exchange Margin for House Account Positions ................................................. 8
Article 7.8 (Deleted) ............................................................................................................. 9
Article 8.Provisional Account Position ................................................................................ 9
Article 9.Margin Requirement for Provisional Account Position ................................... 10
Article 10. Exchange Margin Deposited by Direct Deposit ...........................................11
Article 11. Exchange Margin, etc. Deposited by Replacement Deposit .......................11
Article 12. Trading Member’s Advanced Depositing of Exchange Margin ................ 12
Section 2. Claim for Refund of Margin ........................................................................ 13
Article 13. Claim for Refund of Exchange Margin ........................................................ 13
Article 14. Refund of Exchange Margin .......................................................................... 17
Section 3. Intraday Additional Margin.......................................................................... 18
Article 15. Notice of Intraday Additional Margin Call .................................................. 18
Article 16. Cancellation of Intraday Additional Margin Call ........................................ 18
Article 17. Intraday Settlement Price ............................................................................... 19
Article 18. Trading Member's Duty of Depositing Intraday Additional Margin ........ 19
Article 19. Duty of Depositing Intraday Additional Margin for Unclassified Position .
............................................................................................................................ 20

Section 4.

Treatment of Market Derivatives Contracts upon Suspension fromTransaction or Other Measures Taken ......................................................... 22
Article 20. Suspension of Refund of Exchange Margin due to Suspension ofTransaction or other Measures Taken ................................................................. 22
Article 21. Treatment of Unsettled Positions based on Orders by Suspended
Member’s Customers ............................................................................................ 23
Article 22. Treatment of Exchange Margin for Transferred Positions ......................... 24
Article 23. Treatment of Exchange Margin after Liquidation ....................................... 24
Article 24. Other Treatment involved in Transfer of Unsettled Positions ................... 25

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CHAPTER III. MARGIN FOR CUSTOMER ACCOUNT POSITIONS ........................ 25
Article 25. Purpose of this Chapter ................................................................................... 25
Article 26. Deposit of Margin ............................................................................................ 26
Article 27. Kind, etc. of Eligible Securities ..................................................................... 27
Article 27.3 (Deleted) ........................................................................................................... 28
Article 27.4 (Deleted) ........................................................................................................... 28
Article 28. Customer’s Claim for Refund ........................................................................ 28
Article 29. Offeror’s Claim for Refund ............................................................................ 30
Article 30. Intermediate Broker’s Claim for Refund ...................................................... 34
Article 31. Unrealized Profit and Loss arising from Market Fluctuation .................... 35
Article 32. Request for Additional Margin ...................................................................... 36
Article 33. Restriction on Drawing of Margin ................................................................ 37
Article 34. Restriction on Replacement of Margin ......................................................... 37
Article 35. Refund of Margin ............................................................................................ 38
Article 36. Payment of Unrealized Profit or Transfer of Unrealized Profit to Margin............................................................................................................................ 39

CHAPTER IV.

POSITION TRANSFER, ETC. UPON SUSPENSION FROM
TRANSACTIONS OR OTHER MEASURES TAKEN ....................... 39
Article 37. Duties upon Suspension from Transactions or Other Measures Taken .... 40
Article 38. Exceptions for Customer’s Claim for Refund of Exchange Margin
Deposited by Replacement Deposit .................................................................... 41
Article 39. Exceptions for Offeror’s Claim for Refund of Exchange Margin
Deposited by Replacement Deposit .................................................................... 42
Article 40. Treatment of Customer’s Margin for Transferred Positions ...................... 44
Article 41. Treatment of Offeror’s Margin Deposited for Transferred Positions ....... 45
Article 42. Treatment of Customer’s Margin Deposited for Liquidated Positions..... 47
Article 43. Treatment of Offeror’s Margin Deposited for Liquidated Positions ........ 48

CHAPTER V. MISCELLANEOUS PROVISIONS ......................................................... 49
Article 44. Change in Settlement Method, etc. ............................................................... 49
Article 45. Standard Time .................................................................................................. 49
SUPPLEMENTARY PROVISIONS ................................................................................... 50
Appendix 1 Kind of negotiable securities which Exchange Member may deposit as
eligible securities and applicable multiplier thereof (in relation to Article 7) ..
............................................................................................................................ 52

Appendix 2 Kind of negotiable securities which Customer may deposit as eligible
securities and applicable multiplier thereof (in relation to Article 27) .......... 54

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Table of Contents

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 Interest Rate Futures contracts and
L-T Link Positions and other related matters in accordance with Article 1-2.2 of theTrading Regulations, Article 30 of the Clearing Regulations and Article 11-4 of theBrokering Terms of the Exchange.
1.2
Amendments to Section 4 of Chapter Ⅱ and Chapter Ⅳ shall be effected byobtaining the consent of the Self-regulatory Committee.

Article 2.

Definitions

The terms used herein shall have the meanings ascribed to them as below.
(1)

A “deposited margin” means the sum of the amount of cash (including
the amount transferred to the margin pursuant to Article 36.1 or 36.2
hereof) and the value of the negotiable securities already deposited by
the Trading Member with the Exchange as Exchange Margin,
Customer Margin or Intermediate Broker Margin (these margins are
hereinafter collectively called “Margin” in this Article 2).

(2)

A “house account position” and “house account short position” or“house account long position”, as the case may be, means the short orlong positions relevant to an Interest Rate Futures contract or an L-T
Link Position, or the short and long positions provided for in theSpecial Provisions for Trading Regulations and Brokering Terms for
Options (hereinafter called “Special Provisions for Options”), whichhave been executed or arisen for a Trading Member’s house accountMargin Regulations
1

(except for positions relevant to an offsetting transaction or positions
relevant to a Customer’s order).
(3)

A “Customer account position” and “Customer account short position”
or “Customer account long position”, as the case may be, means theshort or long positions relevant to an Interest Rate Futures contract oran L-T Link Position or the short and long positions specified in theSpecial Provisions for Options, which have been executed or arisen
based on a Customer’s order (except for positions relevant to anoffsetting transaction).

(4)

Except under Articles 18 and 19 hereof, a “SPAN Margin
Requirement” means the Yen amount calculated by SPAN® withrespect to a house account position or a Customer account position at
the close of day session of each trading day (meaning the trading day
specified in Article 2(24) of Trading Regulations; which interpretation
shall apply hereinafter unless otherwise provided herein).

(5)

An “option value” means the value of the short position and longposition specified in the Special Provisions for Options, evaluated at
the Daily Settlement Price.

(6)

A “margin requirement” means the SPAN Margin Requirement
adjusted by the option value, wherein (i) if the option value is greaterthan zero, such option value shall be subtracted from the SPAN Margin
Requirement and (ii) if the option values is less than zero, the absolutevalue of such option value shall be added to the SPAN Margin
Requirement; provided, however, that, if the amount so adjusted by the
option value is less than zero, then the margin requirement shall be
zero.

(7)

An “unrealized loss” means the loss arising from fluctuations of themarket price for the Interest Rate Futures contract based on a
Customer’s order, to be calculated in accordance with Article 31
hereof.

(8)

An “unrealized profit” means the profit arising from fluctuations of the

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market price for the Interest Rate Futures contract based on a
Customer’s order, to be calculated in accordance with Article 31
hereof, minus the amount that has been paid out of the profit ortransferred to the Margin in accordance with Article 36 hereof, if any.
(9)

An “unrealized profit and loss” means an unrealized loss and an
unrealized profit collectively.

(10)

An “adjusted margin requirement” means the margin requirement
adjusted by the unrealized profit and loss, wherein (i) if there is an
unrealized profit, that amount equivalent to the unrealized profit shallbe subtracted from the margin requirement and (ii) if there is an
unrealized loss, that amount equivalent to the unrealized loss shall be
added to the margin requirement; provided, however, that, if theamount of the adjusted margin requirement calculated as aforesaid isless than zero, then the adjusted margin requirement shall be zero.

(11)

A “cash deficiency” in Margin referred to in Article 26 hereof means
the absolute value of the difference between the amount of Margin
already placed or deposited in cash and the amount of the unrealized
loss; provided, however, that, if the placed of deposited amount of
Margin is greater than the amount of the unrealized loss, then the cash
deficiency shall be zero.

(12)

An “extra margining base date” means an Exchange holiday (meaning
the holiday specified in Article 2(22) of Trading Regulations) under thecircumstances where a calendar day immediately preceding such
Exchange holiday falls on a Linked Overseas Exchange’s business day
and the calendar day which is the business day immediately following
such Linked Overseas Exchange’s business day falls earlier than thecalendar day which is the business day (meaning the business day
specified in Article 2(23) of Trading Regulations; which interpretation
shall apply hereinafter unless otherwise provided herein) immediately
following such Exchange holiday.

(13)

An “extra margining date” means the business day immediately
preceding the extra margining base date and the business day

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immediately preceding such business day.
(14)

“Trading Member” means collectively the Japanese Yen Interest Rate
Trading Member as defined in Article 2.2 of the Trading Member
Regulations, the Yen Interest Rate Swap Futures Trading Member as
defined in Article 2.3 of the Trading Member Regulations and theJapanese Yen Interest Rate Remote Trading Member as defined in
Article 2.5 of the Trading Member Regulations.

(15)“Non-Clearing Member” means a person who is not qualified forclearing membership set forth in Article 3.5 of the Clearing
Regulations.

(16)“Clearing Member” means a person who is qualified for clearing
membership set forth in Article 3.2(1) of the Clearing Regulations.

(17)“eligible securities” means negotiable securities deposited by a
Customer or a Trading Member as substitute for cash margin.

(18)“appropriable amount” means the value of the eligible securities
evaluated as margin.

Article 3.

(Deleted)

Article 4.

Purpose of Margin

4.1

Margin shall be deposited for the purposes set forth below:(1)“Exchange Margin” shall be deposited with the Exchange by acustomer (itakusya), intermediate broker (toritsugisya) or offeror(moshikomisya) (hereinafter collectively called “Customer”) or a
Trading Member to ensure the performance of the Customer’s or the
Trading Member’s obligations relevant to its Interest Rate Futurescontracts or L-T Link Positions.

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(2)“Non-Clearing Member Margin” shall be deposited by a Non-Clearing
Member with its Designated Clearing Member to ensure theperformance of the obligations of the Non-Clearing Member’s
Customers relevant to their Interest Rate Futures contracts or L-T Link
Positions.

(3)“Customer Margin” shall be deposited with a Trading Member by acustomer or an intermediate broker to ensure the performance of thecustomer’s or the offeror’s obligations relevant to its Interest Rate
Futures contracts or L-T Link Positions.

(4)“Intermediate Broker Margin” shall be deposited by an offeror with anintermediate broker to ensure the performance of the offeror’s
obligations relevant to its Interest Rate Futures contracts or L-T Link
Positions.

4.2
In the event of default in any of the obligations set forth in Article 4.1 above,
the Exchange, the Trading Member or the intermediate broker shall be entitled toexercise the right with respect to the margin concerned and appropriate the same for thesatisfaction of such obligations.
Article 5.

Calculation of Margin Requirement by SPAN®

5.1
Margin requirements shall be calculated using the calculation method known as®
“SPAN ” developed by Chicago Mercantile Exchange Inc.
5.2

The parameters applied to calculations of margin requirements by SPAN® shallbe determined by the Exchange in accordance with the criteria and manners prescribedby the Exchange.

CHAPTER II.
RIGHTS AND DUTIES OF CLEARING MEMBER OR TRADINGMEMBER IN REGARD TO MARGINS
Margin Regulations
5Section 1.

Depositing of Exchange Margin, etc.

Article 6.

Separate Depositing

6.1

When a Clearing Member has executed an Interest Rate Futures contract or

caused an L-T Link Position to arise in its own name, the Clearing Member shall deposit
the stated amount of Exchange Margin or the amount at which the Exchange Margin
already deposited by it with the Exchange becomes thereby insufficient, if any, as the
Exchange Margin in accordance with the classifications set forth in Article 6.3 below inthe manner separately prescribed by the Exchange, by 11:00 a.m. of the business day
immediately following the business day on which the day session for such Interest Rate
Futures contract or such L-T Link Position takes place or such deficiency arises, as thecase may be.
6.2
A Non-Clearing Member shall place or deposit the stated amount of Exchange
Margin, Non-Clearing Member Margin and Customer Margin with its Designated
Clearing Member in accordance with the classifications set forth in Items (7) through(13) of Article 6.3 below.
6.3
Exchange Margins to be deposited hereunder shall be classified as set forth
below:(1)Those deposited for Clearing Member’s house account;(2)

Those deposited for the accounts of Clearing Member’s Customer by
way of direct deposit set forth in Article 10 hereof;(3)

Those deposited for the accounts of Clearing Member’s Customer by
way of replacement deposit set forth in Article 11 hereof (except those
set forth in Item (4) below);(4)

Those deposited for the accounts of Clearing Member’s Customer by
way of replacement deposit by the intermediate brokers;

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6

(5)Those deposited by way of direct deposit for house accounts ofClearing Member’s affiliated companies which shall be separately
designated by the Exchange (hereinafter called the “authorized
affiliates”);(6)

Those deposited for house accounts of Clearing Member’s authorized
affiliates by way of replacement deposit;(7)

Those deposited for Non-Clearing Member’s house account by way of
direct deposit;(8)

Those deposited for Non-Clearing Member’s house account by way of
replacement deposit (deposited by a Clearing Member on behalf ofsuch Non-Clearing Member);(9)

Those deposited for the accounts of Non-Clearing Member’s Customer
accounts by way of direct deposit;(10)

Those deposited for the accounts of Non-Clearing Member’s Customer
by way of replacement deposit (except those set forth in Item (11)below);(11)

Those deposited for the accounts of Non-Clearing Member’s Customer
by way of replacement deposit by the intermediate brokers;(12)

Those deposited by way of direct deposit for house accounts of
Non-Clearing Member’s authorized affiliates; and(13)

Those deposited by way of replacement deposit for house accounts of
Non-Clearing Member’s authorized affiliates.

6.4
The Exchange Margins deposited from a Trading Member’s own property on
behalf of a Customer under Article 12 hereof shall be classified into one of the categories
concerning replacement deposit set forth in Items (3), (6), (10) and (13) of Article 6.3
above.

Margin Regulations
76.5
A Trading Member shall furnish the Exchange with the documents relating to
the Exchange Margins, Non-Clearing Member Margins and/or Customer Margins
deposited by it with the Exchange in accordance with the conditions separately
prescribed by the Exchange.

Article 7.
7.1

Exchange Margin for House Account Positions

Each Trading Member shall deposit with the Exchange an Exchange Margin in

the amount not less than the margin requirement applicable to the house accountpositions, in the manner prescribed by the Exchange.
7.2
Where the Trading Member who is to make the deposit pursuant to Article 7.1
above is a party to a Member Link Agreement, the Exchange shall calculate extra
amounts of the Exchange Margin with respect to such Trading Member on each extra
margining date in the manner prescribed by the Exchange in the calculation of the SPAN
Margin Requirement for Three-month Euroyen futures or options on Three-month
Euroyen futures specified in the Special Provisions for Options applied to such Trading
Member by SPAN®.
7.3
The Trading Member may deposit the Exchange Margin in the form of currencyof Japanese Yen, or negotiable securities except those issued by any of a person set forthin each Item below.
(1)

the Trading Member itself(2)

Parent company of the Trading Member (which means a parent
company defined in Article 8, Paragraph 3 of the Rules Concerning
Terms, Forms and Procedures for Financial Statements, etc. (Finance
Ministry Ordinance No. 59 of 1963) and the same definition shall applyin (4) below)(3)

a subsidiary of the Trading Member (which means a subsidiary definedin Article 8, Paragraph 3 of the Rules Concerning Terms, Forms andProcedures for Financial Statements, etc. and the same definition shallapply in Item (4) below)

Margin Regulations8

(4)a subsidiary of a parent company of the Trading Member

7.4
The kinds of negotiable securities set forth in Article 7.3 above shall be as listed
in the Appendix 1 attached hereto. These securities shall be deposited at the value notexceeding the amount of the market price thereof as provided for in Note 2 to the said
Appendix 1 on the business day which is two (2) business days preceding the day on
which those securities are deposited (or, if such business day is a holiday of the financial
instruments exchange in Japan on which such securities are traded, the business day
immediately preceding such business day not falling on the said exchange’s holiday)
multiplied by the applicable rate set forth in the said Appendix 1.
7.5
In addition to the provisions of these Regulations, any matters necessary to
stipulate in connection with the Exchange Margins for Interest Rate Futures contracts or
L-T Link Positions or negotiable securities to be deposited as Exchange Margins shall beseparately prescribed by the Exchange.
7.6
A Non-Clearing Member shall cause its Designated Clearing Member to deposit
the Exchange Margin with the Exchange as its agent. If the Non-Clearing Member
fails to deposit all or part of the Exchange Margin, the Designated Clearing Member
may deposit from its own property an amount not less than the double of the amountrequired to be deposited as the said Exchange Margin on behalf of such Non-Clearing
Member, until the business day immediately following the day on which such
Non-Clearing Member deposited all of the requisite Exchange Margin with such
Designated Clearing Member.
7.7
Where the Designated Clearing Member deposits the Exchange Margin
pursuant to the proviso to Article 7.6 above, the provisions of Articles 7.3 and 7.4 hereof
shall apply mutatis mutandis to such Exchange Margin.

Article 7.8(Deleted)

Article 8.

Provisional Account Position

8.1

For the purpose hereof, a “provisional account position” shall mean a position

taken for the account of an Interest Rate Futures contract or an L-T Link Position

Margin Regulations
9executed or caused to arise on a certain trading day, with respect to which any of thematters specified in Items (1) through (3) below failed to be notified to the Exchange by
5:00 p.m. of the business day on which the trading day’s day session falls:(1)

whether for a customer account or for a house account;(2)

notification made by the Carrying Member pursuant to Article 2(34) of
the Trading Regulations with respect to an Interest Rate Futurescontract or an L-T Link Position subject to give-up; or(3)

any items to be designated by the Exchange out of the items that a
Trading Member is allowed to designate at its discretion in the Clearing
System.

8.2
A Trading Member shall make known to the Exchange all the matters set forthin each Item of Article 8.1 above with respect to the provisional account positions by thetime separately designated by the Exchange.
8.3
If an offsetting notification is filed in connection with a provisional accountposition, such Resale or Repurchase shall be deemed executed at the time when all thematters set forth in each Item of Article 8.1 above have been advised to the Exchange.

Article 9.

Margin Requirement for Provisional Account Position

9.1
A Trading Member with respect to whom a provisional account position arises
shall deposit with the Exchange an amount not less than the margin requirement
applicable to such provisional account position as Exchange Margin, together with the
Exchange Margin for its house account positions set forth in Article 7.1 hereof, in themanner separately prescribed by the Exchange.
9.2
Where the Trading Member who is to make the deposit pursuant to Article 9.1
above is a party to a Member Link Agreement, the Exchange shall calculate extra
amounts of the Exchange Margin with respect to such Trading Member on each extra
margining date in the manner prescribed by the Exchange in the calculation of the SPAN
Margin Requirement for Three-month Euroyen futures or options on Three-month
Euroyen futures specified in the Special Provisions for Options applied to such Trading

Margin Regulations
10Member by SPAN®.

Article 10.

Exchange Margin Deposited by Direct Deposit

10.1
If a Trading Member receives an Exchange Margin from a Customer inaccordance with Article 26 hereof, the Trading Member shall be required to deposit thesame with the Exchange (such manner of depositing being hereinafter called “direct
deposit(ing)”) as agent for the Customer; provided, however, that with respect to the
Exchange Margin received from an intermediate broker, a Trading Member shall deposit
it with the Exchange by way of replacement deposit as specified in Article 11 below.
10.2
If a Non-Clearing Member receives an Exchange Margin from a Customer, such
Exchange Margin shall be deposited with the Exchange through such Non-Clearing
Member and its Designated Clearing Member both acting as agents of the Customer.

Article 11.

Exchange Margin, etc. Deposited by Replacement Deposit

11.1
If a Trading Member receives a Customer Margin from its Customer inaccordance with Article 26 hereof with such Customer’s prior consent to the depositing
thereof by way of replacement deposit (as defined below) having been obtained, theTrading Member shall deposit an Exchange Margin with the Exchange from its own
property as agent for that Customer, in an amount not less than the amount of the said
Customer Margin deposited with it (such manner of depositing being hereinafter called“replacement deposit(ing)”). Provided, however, that the foregoing shall not apply to
the Customer Margin set forth in Article 32 hereof, and such exception shall also apply
in Article 11.2 below.
11.2
The Trading Member who received depositing of the Customer Margin under
Article 11.1 above shall manage the same separately from its own property. If theTrading Member received any portion of such Customer Margin in cash, it shall manage
such cash portion by the method separately prescribed by the Exchange.
11.3
A Non-Clearing Member who received the Customer Margin shall deposit the
Exchange Margin with the Exchange through its Designated Clearing Member acting as
its agent.

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11.4
Notwithstanding Article 11.3 above, a Non-Clearing Member may deposit with
its Designated Clearing Member as a Non-Clearing Member Margin from its own
property an amount not less than the double of the amount received by it as the Customer
Margin in lieu of the deposit of an Exchange Margin with the Exchange. In such case,such Designated Clearing Member shall deposit an Exchange Margin with the Exchange
from its own property in an amount not less than the double of the Non-Clearing
Member Margin.
11.5
The provisions of Articles 7.3 through 7.5 hereof shall apply to the Exchange
Margin deposited by a Non-Clearing Member pursuant to Article 11.3 hereof and the
Exchange Margin deposited by the Designated Clearing Member pursuant to the latterpart of Article 11.4 above.
11.6
The provisions of Articles 7.3 through 7.5 hereof shall apply to the
Non-Clearing Member Margin deposited by a Non-Clearing Member pursuant to theformer part of Article 11.4 above. For the purpose of the foregoing, the term “currencyof Japanese Yen” used in Article 7.3 hereof shall be read as “money” and the term
“Exchange Margin” used in Articles 7.3 through 7.5 hereof shall be read as“Non-Clearing Member Margin”.
11.7
In the making of deposit under the latter part of Article 11.4 hereof, theDesignated Clearing Member shall manage the Non-Clearing Member Margin received
by it separately from its own property.

Article 12.

Trading Member’s Advanced Depositing of Exchange Margin

12.1
If a Customer who is obliged to deposit an Exchange Margin fails to deposit allor part of such margin with a Trading Member, the Trading Member shall deposit with
the Exchange as the Exchange Margin from its own property an amount not less thandouble of such Exchange Margin on behalf of such Customer at any time but in no caselater than three (3) business days after the date of its receipt of all of the requisite
Exchange Margin from such Customer. The same shall apply where a Customer fails
to deposit all or part of a Customer Margin.
12.2

The provisions of Articles 7.3 through 7.5 hereof shall apply to the Exchange

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Margin deposited by a Trading Member pursuant to Article 12.1 above.

Section 2.

Claim for Refund of Margin

Article 13.

Claim for Refund of Exchange Margin

13.1
With respect to the Exchange Margins deposited with the Exchange under
Articles 7 through 12 hereof, each Trading Member or Customer shall be entitled toclaim to the Exchange a refund of the money in the amount equal to the deposited cash,or the deposited eligible securities or the negotiable securities of the same kind and value
as the deposited eligible securities.
13.2
Notwithstanding the provisions of Article 13.1 above, a Trading Member or a
Customer shall be entitled to claim to the Exchange a refund of the Exchange Marginplaced or deposited in the manner set forth in each of the following Items, whichever isapplicable, in the amount set forth in the same Item. In this connection, the amount of
obligations with respect to Interest Rate Futures contracts or L-T Link Positions which
remain outstanding and payable by a Trading Member who is a Clearing Member to the
Exchange shall be hereinafter called the “Clearing Member Outstanding Obligation”, theamount of those payable by a Trading Member who is a Non-Clearing Member to its
Designated Clearing Member shall be hereinafter called the “Non-Clearing Member
Outstanding Obligation”, the amount of those payable by a Customer who is a customer(itakusya) to the Trading Member with whom it has placed or deposited margin shall behereinafter called the “Customer Outstanding Obligation”, the amount of those payable
by a Customer who is an intermediate broker to the Trading Member with whom it has
placed or deposited margin shall hereinafter be called the “Intermediate Broker
Outstanding Obligation”, and the amount of those payable by a Customer who is anofferor to the intermediate broker with whom it has placed or deposited margin shall behereinafter called the “Offeror Outstanding Obligations”. Where the Exchange Marginis placed or deposited in the form of eligible securities, such Exchange Margin may beclaimed at the market price of such deposited eligible securities:(1)

With respect to the Exchange Margin deposited by the Trading Member
for its house account positions or provisional account positions in

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accordance with Article 7 or 9 hereof:(a)Where the claimant is the Trading Member who is a Clearing
Member:
The amount claimable by the Clearing Member shall be theamount of the Exchange Margin deposited by it (less the
Clearing Member Outstanding Obligation, if any) added by
the portion of the Exchange Margin received by it from a
Non-Clearing Member that represents the Non-Clearing
Member Outstanding Obligation of such Non-Clearing
Member; and(b)

Where the claimant is the Trading Member who is a
Non-Clearing Member:
The amount claimable by the Non-Clearing Member shall be
the amount of the Exchange Margin deposited by it minus its
Non-Clearing Member Outstanding Obligation.

(2)

With respect to the Exchange Margin deposited by the Customer bydirect deposit:(a)Where the claimant is the Customer:
The amount claimable by the Customer shall be the amount of
the Exchange Margin deposited by it minus its Customer
Outstanding Obligation (or the Offeror Outstanding Obligation
if the Customer is an offeror);(b)

Where the claimant is a Clearing Member:
The amount claimable by the Clearing Member shall be theamount of the Exchange Margin (less its Clearing Member
Outstanding Obligation, if any) minus: (i) the amount of (a)above, (ii) the amount of the relevant intermediate broker’s
claim for refund set forth in Article 30 hereof and (iii) the

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amount of (c) below; and(c)Where the claimant is a Non-Clearing Member:
The amount claimable by the Non-Clearing Member shall be
the amount set forth in Article 13.3 below.

(3)

With respect to the Exchange Margin deposited by the Trading Member
in regard to a customer (itakusya)’s Interest Rate Futures contracts or
L-T Link Positions either by replacement depositing or from its own
property on behalf of the customer in accordance with Article 11 or 12
hereof:(a)

Where the claimant is the customer:
The amount claimable by the customer shall be the amount of
the Exchange Margin (but not exceeding the amount of the
Customer Margin) minus its Customer Outstanding
Obligation;(b)

Where the claimant is a Clearing Member:
The amount claimable by the Clearing Member shall be theamount of the Customer Margin (minus the Clearing Member
Outstanding Obligation, if any), minus the amounts of (a)above and (c) below; and(c)Where the claimant is a Non-Clearing Member:
The amount claimable by the Non-Clearing Member shall be
the amount set forth in Article 13.3 below.

(4)

With respect to the Exchange Margin deposited by the Trading Member
in regard to an offeror’s Interest Rate Futures contracts or L-T Link
Positions either by replacement depositing or from its own property on
behalf of the offeror in accordance with Article 11 or 12 hereof:

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15

(a)

Where the claimant is the offeror:
The amount claimable by the offeror shall be the amount of
the Exchange Margin (but not exceeding the amount of the
Customer Margin or the Intermediate Broker Margin depositedby it) minus its Offeror Outstanding Obligation;(b)

Where the claimant is a Clearing Member:
The amount claimable by the Clearing Member shall be theamount of the Customer Margin (minus its Clearing Member
Outstanding Obligation, if any) minus: (i) the amount of (a)above, (ii) the amount of the relevant intermediate broker’s
claim for refund set forth in Article 30 hereof and (iii) theamount of (c) below; and(c)Where the claimant is a Non-Clearing Member:
The amount claimable by the Non-Clearing Member shall be
the amount set forth in Article 13.3 below.

(5)

A Trading Member who carried out a replacement depositing under thecircumstances set forth in Item (3) or (4) above shall be entitled toclaim to the Exchange a refund of Exchange Margin in the amountequal to the difference between the Exchange Margin deposited by itwith the Exchange and the margin received by it.

13.3
The amount of the claim for refund entitled to a Non-Clearing Member underItems (2)(c), (3)(c) and (4)(c) of Article 13.2 above shall be as follows:(1)

Where the Non-Clearing Member has received the margin from acustomer:
The amount claimable by the Non-Clearing Member shall be theamount of the Customer Outstanding Obligation minus the
Non-Clearing Member Outstanding Obligation; andMargin Regulations
16

(2)

Where the Non-Clearing Member has received the margin from anintermediate broker or an offeror:
The amount claimable by the Non-Clearing Member shall be theamount of the Intermediate Broker Outstanding Obligation minus the
Non-Clearing Member Outstanding Obligation.

13.4
If the Exchange refunds the deposited Exchange Margin under Article 13.2
hereof after realizing such deposited margin, the Exchange may deduct the costs
expended for the realization from the amount of Exchange Margin so refunded.
Furthermore, where a Trading Member from whom the Exchange Margin has been
deposited by way of replacement deposit is ordered suspension from transactions at the
Exchange or other measures, if the sum of such Exchange Margin minus the amount ofcosts incurred for realization of securities deposited as such margin falls short of the total
amount of Exchange Margin subject to the claim for refund held by each Customer ofsuch Trading Member, the amount of Exchange Margin subject to such claim for refund
shall be allocated among each such Customer in proportion to the amount of claim forrefund held by it.

Article 14.

Refund of Exchange Margin

14.1
If a Trading Member who is a Non-Clearing Member claims a refund to the
Exchange in accordance with Article 13 above with respect to the Exchange Margindeposited in accordance with Article 7 or 9 hereof, the Exchange shall make the refund
to the Designated Clearing Member acting as agent for such Non-Clearing Member.
14.2
If a refund is claimed in accordance with Article 13 above for the Exchange
Margin deposited pursuant to Article 10 or 11 hereof, the Exchange shall refund such
Exchange Margin: (i) if the claimant is a Non-Clearing Member, through its Designated
Clearing Member acting as its agent, and (ii) if the claimant is a Customer, through theClearing Member (or, if the Clearing Member is a Designated Clearing Member, throughboth such Designated Clearing Member as well as the relevant Non-Clearing Member)
acting as its agent.

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17

Section 3. Intraday Additional Margin

Article 15.

Notice of Intraday Additional Margin Call

15.1
If an event falling under any of the criteria set forth below occurs on any trading
day, the Exchange shall promptly notify all the Trading Members of an intraday
additional margin call (hereinafter called the “intraday additional margin call notice”)
between 11:25 a.m. and 12:00 a.m. of the business day on which the trading day’s day
session falls:(1)

When the price of the Interest Rate Futures contract for certain contract
month designated by the Exchange varied as of 11:25 a.m. of suchbusiness day, from the immediately preceding trading day’s daily
settlement price (meaning the price determined by the Exchange
pursuant to the Trading Regulations; the same shall apply hereinbelow)
beyond the permissible range determined by the Exchange in advance;(2)

When the price of the Interest Rate Futures contract for certain contract
month designated by the Exchange varied during the evening session or
before 11:25 a.m. of the day session of such trading day, from theimmediately preceding trading day’s daily settlement price beyond thepermissible range determined by the Exchange in advance; or(3)When the Exchange otherwise deems it necessary to issue an intraday
additional margin call notice.

15.2
Intraday additional margins shall be deposited with the Exchange as Exchange
Margins.

Article 16.

Cancellation of Intraday Additional Margin Call

The Exchange may cancel an intraday additional margin call issued by itwhenever it determines that the depositing thereof has become no longer necessary.
Once the call is so cancelled, the relevant Trading Members shall no longer be required
to deposit the intraday additional margins.

Margin Regulations
18

Article 17.

Intraday Settlement Price

17.1
When the Exchange has issued an intraday additional margin call notice, it shalldetermine the daily settlement figure or Daily Settlement Price for each contract monthor each of the series designated in the Special Provisions for Options to determine theamounts of intraday additional margins (hereinafter called the “Intraday Settlement
Price”), and promptly advise the Trading Members concerned of the Intraday Settlement
Price so determined.
17.2
The Intraday Settlement Price set forth in Article 17.1 above shall be
determined in the manner separately prescribed by the Exchange.

Article 18.
18.1

Trading Member's Duty of Depositing Intraday Additional Margin

In case where the sum of the amount of cash and the value of securities

deposited by a Trading Member with the Exchange as Exchange Margin for its houseaccount positions falls short of the amount notified of by the Exchange (or the
Designated Clearing Member if the Trading Member is a Non-Clearing Member) as therequired amount of Exchange Margin as of 12:00 a.m. of the business day on which the
Trading Member receives an intraday additional margin call notice, the Trading Member
shall deposit with the Exchange an amount not less than such shortfall as intraday
additional margin in the manner prescribed by the Exchange, by 3:30 p.m. of thebusiness day on which the notice is given to such Trading Member.
18.2
The required amount of Exchange Margin advised to the Trading Member by
the Exchange or its Designated Clearing Member under Article 18.1 above shall be thesum obtained by: (i) firstly, calculating the Yen amount by SPAN® with respect to the
Trading Member’s house account positions as of 12:00 a.m. of the business day on
which the intraday additional margin call notice is given to the Trading Member(hereinafter called the “SPAN Margin Requirement” in this Article 18), (ii) secondly,
adjusting the SPAN Margin Requirement thus obtained with the option value relevant tothe said house account positions and (iii) finally, adding the absolute value of the sum of
the amounts obtained in accordance with Items (1) and (2) below, to the extent that such
sum is less than zero (in such case, the absolute value of the amount obtained in

Margin Regulations
19

accordance with Item (1) below shall be added only when such amount is less than zero,and if the amount obtained is greater than zero, it shall be deemed zero):(1)

The contract price or the Acceptance Figure minus the Intraday
Settlement Price in the case of a sale contract or an L-T Link Short
Position, and the Intraday Settlement Price minus the contract price or
the Acceptance Figure in the case of a purchase contract or an L-T Link
Long Position, in each case executed or arising with respect to the
Trading Member’s house account position after the commencement of
the evening session for the trading day on which the intraday additional
margin call notice is given up until 12:00 a.m. of the same trading day(the initial mark-to-market amount for that trading day), plus the total
amount of the option premiums receivable by the Trading Member
minus the total amount of the option premiums payable by the Trading
Member, each accruing in regard to the sale contract or the purchase
contract prescribed by the Special Provisions for Options which is
executed after the commencement of the evening session for the
trading day on which the intraday additional margin call notice is given
up until 12:00 a.m. of the same trading day (the option premium forthat trading day); and(2)With respect to the Interest Rate Futures contract executed for the
Trading Member’s house account up until the trading day immediately
preceding the trading day on which the intraday additional margin callnotice is given, the daily settlement price quoted on such immediately
preceding trading day minus the Intraday Settlement Price in the caseof a short position, or the Intraday Settlement Price minus the daily
settlement price quoted on such immediately preceding trading day inthe case of a long position.

18.3
If a Non-Clearing Member is required to deposit an intraday additional marginunder this Article 18, such depositing with the Exchange shall be effected through the
Designated Clearing Member acting as agent for such Non-Clearing Member.

Article 19.

Duty of Depositing Intraday Additional Margin for Unclassified

Position

Margin Regulations
20

19.1
In regard to the Interest Rate Futures contracts or L-T Link Positions withrespect to which any of the information set forth in each Item of Article 8.1 hereof
remains not advised to the Exchange (the position for such Interest Rate Futurescontracts or L-T Link Positions are hereinafter called the “unclassified position”), in casewhere the sum of the amount of cash and the appropriable amount of negotiablesecurities deposited by a Trading Member with the Exchange as Exchange Margin forsuch unclassified position falls short of the amount notified of by the Exchange (or the
Designated Clearing Member if the Trading Member is a Non-Clearing Member) as therequired amount of Exchange Margin as of 12:00 a.m. of the business day on which the
Trading Member receives an intraday additional margin call notice, the Trading Member
shall deposit with the Exchange an amount not less than such shortfall as intraday
additional margin, together with the intraday additional margin required to be depositedfor its house account positions under Article 18 above, in the manner prescribed by the
Exchange, by 3:30 p.m. of the business day on which the notice is given to such Trading
Member.
19.2

The required amount of Exchange Margin advised to the Trading Member by

the Exchange or its Designated Clearing Member under Article 19.1 above shall be thesum obtained by: (i) firstly, calculating the Yen amount by SPAN® after the deadline set
forth in Article 19.1 above with respect to the short and long positions and the short andlong positions specified in the Special Provisions for Options relevant to the Trading
Member’s unclassified position, respectively as of 12:00 a.m. of the business day on
which the intraday additional margin call notice is given to the Trading Member(hereinafter called the “SPAN Margin Requirement” in this Article 19), (ii) secondly,
adjusting the SPAN Margin Requirement thus obtained with the option value relevant to
the Trading Member’s unclassified position and (iii) finally, adding the absolute value ofthe sum of the amounts obtained in accordance with Items (1) and (2) below, to theextent that such sum is less than zero (in such case, the absolute value of the amountobtained in accordance with Item (1) below shall be added only when such amount isless than zero, and if the amount obtained is greater than zero, it shall be deemed zero):(1)

The contract price or the Acceptance Figure minus the Intraday
Settlement Price in the case of sale contract or L-T Link Short Position,and the Intraday Settlement Price minus the contract price or the
Acceptance Figure in the case of purchase contract or L-T Link Long
Position, in each case executed or arising with respect to the

Margin Regulations
21

unclassified position after the commencement of the evening session
for the trading day on which the intraday additional margin call notice
is given up until 12:00 a.m. of the same trading day (the initialmark-to-market amount for that trading day), plus the total amount of
the option premiums receivable by the Trading Member less the total
amount of the option premiums payable by the Trading Member, eachaccruing in regard to the sale contract or the purchase contractprescribed by the Special Provisions for Options which is executed
after the commencement of the evening session for the trading day on
which the intraday additional margin call notice is given up until 12:00
a.m. of the same trading day (the option premium for that trading day);and(2)With respect to the Interest Rate Futures contract executed for theunclassified position up until the trading day immediately preceding
the trading day on which the intraday additional margin call notice isgiven, the daily settlement price quoted on such immediately preceding
trading day minus the Intraday Settlement Price in the case of shortposition, or the Intraday Settlement Price minus the daily settlement
price quoted on such immediately preceding trading day in case the oflong position.

19.3
If a Non-Clearing Member is required to deposit an intraday additional marginunder this Article 19, such depositing with the Exchange shall be effected through the
Designated Clearing Member acting as agent for such Non-Clearing Member.

Section 4.
Treatment of Market Derivatives Contracts upon Suspension fromTransaction or Other Measures Taken

Article 20.
Suspension of Refund of Exchange Margin due to Suspension ofTransaction or other Measures Taken
20.1
If a Trading Member becomes or is deemed likely to become insolvent and the
Exchange imposes suspension from or restriction on transactions or other measure(hereinafter called “disciplinary measure”) on such Trading Member (hereinafter called

Margin Regulations
22

the “Suspended Member”) pursuant to Articles 61 through 63 of the Trading Member
Regulations, the Exchange shall temporarily refrain from refunding the Exchange
Margin to the Suspended Member and the Trading Member who has deposited the
Exchange Margin through the Suspended Member acting as its agent, and their
Customers.
20.2
Where the Suspended Member is a Non-Clearing Member, the Exchange shall
temporarily refrain from refund to the Suspended Member of the Exchange Margindeposited for the Interest Rate Futures contracts or L-T Link Positions for the
Non-Clearing Member’s house account or based on its Customers’ orders.

Article 21.
Treatment of Unsettled Positions based on Orders by Suspended
Member’s Customers
21.1
Once a disciplinary measure is imposed on a Suspended Member, theSuspended Member shall forthwith inform its Customers (except for offerors, thisexception shall apply hereinafter in Articles 21, 22 and 23 hereof) to that effect. In thiscase, if the Exchange determines to require position transfer or liquidation pursuant to
Article 38-2.1 of the Trading Member Regulations with respect to the Unsettled
Positions based on any order by the Suspended Member’s Customer, the Suspended
Member shall inform those Customers of such transfer or liquidation and other necessary
matters as well.
21.2
The position transfer set forth in Article 21.1 above shall be implemented when
any of the Suspended Member’s Customers requests another Trading Member to accept
such position transfer and such Trading Member as position transferee delivers a writtenconsent to such position transfer to the Exchange by the time and date designated by the
Exchange, whereupon the Exchange shall adopt the prices or figures designated by the
Exchange as the contract prices of the Unsettled Positions thus transferred.
21.3
The liquidation set forth in Article 21.1 above shall be implemented in themanner prescribed by the Exchange, when the Suspended Member informs the Exchangeof such liquidation based on its Customer’s instruction.
21.4

If the Customer does not obtain the position transferee’s consent by the timeand date designated by the Exchange under Article 21.2 above, or if the Customer does

Margin Regulations
23

not give the liquidation instruction set forth in Article 21.3 above, the Exchange shallliquidate the Unsettled Positions based on the Customer’s order for its account in themanner prescribed by the Exchange.

Article 22.

Treatment of Exchange Margin for Transferred Positions

If the position transfer is implemented in accordance with Article 21 above, therelevant Exchange Margin shall be treated in the following manners:(1)

With respect to the Exchange Margin deposited by the Customer bydirect depositing, the Exchange Margin in the amount of the claim forrefund held by the Customer shall be deemed to be deposited with the
Exchange by direct depositing through the position transferee (or the
position transferee and its Designated Clearing Member if the positiontransferee is a Non-Clearing Member; the foregoing interpretation
applies to the term “position transferee” as used in this Article 22)
acting as agent for the Customer.

(2)

With respect to the Exchange Margin deposited by the Suspended
Member by replacement depositing with the Customer Margin having
been deposited by the Customer, the Exchange Margin in the amount of
the claim for refund held by the Customer shall be deemed to bedeposited with the Exchange by direct depositing through the positiontransferee acting as agent for the Customer.

(3)

If the Exchange Margin which is deemed to be deposited by direct
deposit under Item (1) or (2) above is refunded to the Customer, it shallbe refunded to the Customer through the position transferee acting as
agent for the Customer.

Article 23.

Treatment of Exchange Margin after Liquidation

23.1
When the liquidation under Article 21 hereof is implemented, each of theTrading Member and the Customer concerned may exercise the claim for refund of the
Exchange Margin relevant to the liquidated contract or position directly against the

Margin Regulations
24

Exchange.
23.2
If the claim for refund set forth in Article 23.1 above is exercised directlyagainst the Exchange, the Exchange shall make the refund after a reasonable period oftime necessary for calculating the amount to be refunded.

Article 24.

Other Treatment involved in Transfer of Unsettled Positions

In addition to the provisions of Articles 20 through 23 hereof, any mattersnecessary for transfer of Unsettled Positions shall from time to time be prescribed by the
Exchange.

CHAPTER III.
MARGIN FOR CUSTOMER ACCOUNT POSITIONSArticle 25.

Purpose of this Chapter

25.1
The purpose of this Chapter III is to stipulate the relationship between
Customers and Trading Members.
25.2

Notwithstanding the provisions of Article 25.1 above, the relationship between

a Customer who is an intermediate broker (toritsugisya) and a Customer who is anofferor (moshikomisya) shall be treated in the same manner as to the case of a
relationship between a Trading Member and a customer (itakusya) for the purpose oftreatment of transactions, whereby Articles 26.7, 28 and 35.2 hereof shall be excluded in
the application of these Regulations, and the term “Customer Margin” referred to in
Articles 26.5 and 32 hereof shall be read as “Intermediate Broker Margin”, and as usedhereinbelow except for Articles 26.2, 26.3, 26.5, 29, 30, 32, 35.3, 37, 39, 41 and 43
hereof, the term “Trading Member” shall be read as “intermediate broker”, the term
“Executing Member” shall be read as “intermediate broker acting vis-à-vis the Executing
Member”, the term “Carrying Member” shall be read as “intermediate broker acting

Margin Regulations
25

vis-à-vis the Carrying Member”, the term “position transferee” shall be read as“intermediate broker acting vis-à-vis the position transferee”, the term “Customer” shallbe read as “offeror”, the term “Customer Margin” shall be read as “Customer Margin
and Intermediate Broker Margin”, and the term “order” placed by a Customer or any
equivalent expression thereof shall be read as “offer for intermediation of ordering”
respectively.

Article 26.

Deposit of Margin

26.1
If a Customer’s deposited margin falls short of the adjusted margin requirement
on any trading day, the concerned Trading Member shall notify the Customer of theamount set forth in Item (1) or (2) below according to the classifications specified
therein. In this case, the Customer shall place or deposit a sum not less than the
notified amount with the Trading Member as margin, not later than the time and datedesignated by the Trading Member, which date shall fall before the second business day
following the business day on which there occurs the day session of the trading day on
which the event set forth in Item (1) or (2) below has taken place. Provided, however,that in either case, the Customer shall be required to place or deposit the portion
representing cash deficiency in cash only:(1)

If the cash deficiency is less than the difference between the adjusted
margin requirement and the deposited margin, the amount of suchdifference shall be placed or deposited; and(2)

If the cash deficiency is greater than the difference between theadjusted margin requirement and the deposited margin, the amount of
the cash deficiency shall be placed or deposited.

26.2
If a Non-Clearing Member’s Customer deposits the Customer Margin with the
Non-Clearing Member’s Designated Clearing Member in accordance with Article 26.1
above with respect to Securities, etc. Clearing-Brokering Contracts, the Non-Clearing
Member shall, acting as agent for and in favor of the Customer, deposit the said
Customer Margin with the Designated Clearing Member.
26.3

Where the provisions of Article 26.1 hereof apply in accordance with Article

25.2 hereof, the intermediate broker shall, acting as agent for the offeror, place or deposit

Margin Regulations
26

with the Trading Member the Exchange Margin or the Customer Margin received fromthe offeror, and if the intermediate broker has received the Intermediate Broker Margindeposited by the offeror, the intermediate broker shall place or deposit with the Trading
Member the Exchange Margin or the Customer Margin from its own property in an
amount not less than such Intermediate Broker Margin.
26.4
Where the provisions of Article 26.1 hereof apply in accordance with Article
25.2 hereof, if the intermediate broker has received the Intermediate Broker Margin, theintermediate broker shall manage such Intermediate Broker Margin separately from its
own property.
26.5
A Customer may place or deposit margin in the form of negotiable securities;
provided, however, that the amount representing the cash deficiency set forth in Article
26.1(1) or 26.1(2) hereof shall be deposited as Customer Margin in cash.
26.6
Where the concerned trading day under Article 26.1 hereof is the trading day forwhich the margin to be placed or deposited on the business day immediately preceding
the extra margining base date will be calculated, the Trading Member shall calculate
extra amounts of the margin by the method prescribed by the Exchange in accordance
mutatis mutandis with Article 7.2 hereof with respect to Three-month Euroyen futuresand options on Three-month Euroyen futures, in calculating the SPAN Margin
Requirement chargeable to the Customer set forth in Article 8.1 of the Brokering Terms
who is: (i) a person who intends to make ordering for a linked market derivatives
transaction or offer for intermediating the ordering thereof effective on the Linked
Overseas Exchange’s business day which falls on the calendar day immediately
preceding the extra margining base date, or (ii) the Customer set forth in Article 8.2 of
the Brokering Terms.
26.7
When a Customer deposits Exchange Margin in the form of cash, such cash
shall be deposited in the currency of Japanese Yen.
26.8
A Customer of Japanese Yen Interest Rate Remote Trading Member may
deposit Customer Margins in cash denominated in any currency as well as Japanese Yen.

Article 27.

Kind, etc. of Eligible Securities

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27

27.1
The kinds of securities eligible for placement or deposit by Customer as
margins shall be those listed in Appendix 2 attached hereto, and the appropriable amountat which such securities are placed or deposited shall be the amount not exceeding themarket price as provided for in Note 2 to the said Appendix 2 which is prevailing on the
day immediately preceding the date of placement or depositing thereof multiplied by therelevant rate set forth in the said Appendix 2.
27.2
In addition to the provisions of these Regulations, any matters necessary to
stipulate in connection with the negotiable securities which are allowed to be placed ordeposited by Customer shall be separately prescribed by the Exchange.

Article 27.3

(Deleted)

Article 27.4

(Deleted)

Article 28.

Customer’s Claim for Refund

28.1
A Customer (except for any intermediate broker and offeror, which exception
shall apply in this Article 28 and Articles 38, 40 and 42 hereof) shall be entitled to claima refund of the margin set forth in the following Items:(1)

If the Customer has deposited the Exchange Margin, the Customer
shall be entitled to claim to the Exchange a refund thereof in theamount set forth in either (a) or (b) below whichever is applicableminus its Customer Outstanding Obligation:

(2)

(a)

the amount of the Exchange Margin deposited by the
Customer in cash; or(b)the market price of the eligible securities deposited by the
Customer as the Exchange Margin.

If the Customer has deposited the Customer Margin, the Customer
shall be entitled to claim a refund thereof in the amounts set forth inMargin Regulations
28

both (a) and (b) below to the person specified below:(a)the amount of the Customer Margin deposited by the
Customer minus its Customer Outstanding Obligation,
claimable towards the concerned Trading Member (or towards
the Non-Clearing Member who received the said Customer
Margin or its Designated Clearing Member, in the case of
Securities, etc. Clearing-Brokering Contracts); and(b)

the Exchange Margin in the amount set forth in (i) or (ii)below, claimable towards the Exchange:(i)with respect to the Exchange Margin deposited byreplacement depositing by the concerned Trading
Member (or by the Non-Clearing Member who accepted
an order for Interest Rate Futures transactions or Linked
Clearing thereof or its Designated Clearing Member, inthe case of Securities, etc. Clearing-Brokering
Contracts) in cash, the amount representing theCustomer Margin deposited by the Customer in cash (orthe market price of the eligible securities deposited as
the said Customer Margin, if applicable, whichinterpretation shall apply in Articles 29.1, 30, 38.1 and39.1 hereof) minus the Customer Outstanding
Obligation of the Customer; or(ii)

with respect to the Exchange Margin deposited byreplacement depositing by the concerned Trading
Member (or by the Non-Clearing Member who accepted
an order for Interest Rate Futures transactions or Linked
Clearing thereof or its Designated Clearing Member, inthe case of Securities, etc. Clearing-Brokering
Contracts) in the form of eligible securities, the portionof the market price of such eligible securities
corresponding to the amount set forth in (i) above.

28.2

Where a Customer exercises its claim for refund of the Exchange Margin set

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29

forth in Article 28.1(1)(b) above, or for refund of the Customer Margin set forth in
Article 28.1(2)(a) above if the Customer has deposited eligible securities as such
Customer Margin, the concerned Trading Member may refund to the Customer either theeligible securities deposited by the Customer or the negotiable securities of same series
and equivalent value if there is no Customer Outstanding Obligation with respect to theCustomer, or may refund the said margin in cash, in whole or in part, if there is any
Customer Outstanding Obligation with respect to the Customer.
28.3

No Customer shall be allowed to exercise its claim for refund of its Exchange

Margin directly to the Exchange, unless the Exchange deems it necessary, and theCustomer’s claim for refund as aforesaid shall be exercised through the concerned
Trading Member (or through the Non-Clearing Member who accepted an order forInterest Rate Futures transactions or Linked Clearing thereof and its Designated Clearing
Member, in the case of Securities, etc. Clearing-Brokering Contracts).
28.4
If a Customer exercises its claim for refund relevant to the Exchange Margin or
the Customer Margin, the concerned Trading Member may request the Customer to bear
the costs expended for conversion into cash of the securities deposited as margin by way
of deduction of the said costs from the amount of claim for refund exercised by the
Customer, to the extent that such conversion or disposition is necessary.

Article 29.

Offeror’s Claim for Refund

29.1
An offeror shall be entitled to claim a refund of the margin set forth in thefollowing Items:(1)

If the offeror has deposited the Exchange Margin, the offeror shall beentitled to claim to the Exchange a refund thereof in the amount set
forth in either (a) or (b) below whichever is applicable minus its
Offeror Outstanding Obligation:(a)the amount of the Exchange Margin deposited by the offeror
in cash; or(b)the market price of the eligible securities deposited by theofferor as the Exchange Margin.

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30

(2)

If the offeror has deposited the Customer Margin, the offeror shall beentitled to claim a refund thereof in the amounts set forth in both (a)and (b) below to the person specified below:(a)the amount of the Customer Margin deposited by the offeror
minus its Offeror Outstanding Obligation, claimable towards
the concerned Trading Member; and(b)

the Exchange Margin in the amount set forth in (i) or (ii)below, claimable towards the Exchange:(i)with respect to the Exchange Margin deposited byreplacement depositing by the concerned Trading
Member (or by the Non-Clearing Member who accepted
an order for Interest Rate Futures transactions or Linked
Clearing thereof from the concerned intermediate broker
or its Designated Clearing Member, in the case of
Securities, etc. Clearing-Brokering Contracts) in cash,
the amount representing the Customer Margin depositedby the offeror in cash minus its Offeror Outstanding
Obligation; or(ii)with respect to the Exchange Margin deposited byreplacement depositing by the concerned Trading
Member (or by the Non-Clearing Member who accepted
an order for Interest Rate Futures transactions or Linked
Clearing thereof from the concerned intermediate broker
or its Designated Clearing Member, in the case of
Securities, etc. Clearing-Brokering Contracts) in theform of eligible securities, the portion of the market
price of such eligible securities corresponding to theamount set forth in (i) above.

(3)

If the offeror has deposited the Intermediate Broker Margin, the offeror
shall be entitled to claim a refund thereof in the amounts set forth inboth (a) and (b) below to the person specified below:

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31

(a)

the amount of the Intermediate Broker Margin deposited by
the offeror minus its Offeror Outstanding Obligation,
claimable towards the concerned intermediate broker; and(b)

the Exchange Margin in the amount set forth in (i) or (ii)below, claimable towards the Exchange:(i)with respect to the Exchange Margin deposited byreplacement depositing by the concerned intermediate
broker the concerned Trading Member (or by the
Non-Clearing Member who accepted an order forInterest Rate Futures transactions or Linked Clearing
thereof from the concerned intermediate broker or its
Designated Clearing Member, in the case of Securities,
etc. Clearing-Brokering Contracts) in cash, the amountrepresenting the Intermediate Broker Margin depositedby the offeror in cash (or the market price of the eligible
securities deposited as the said Intermediate Broker
Margin, if applicable, which interpretation shall apply in
Article 39.2 hereof) minus its Offeror Outstanding
Obligation; or(ii)with respect to the Exchange Margin deposited byreplacement depositing by the concerned intermediate
broker or the concerned Trading Member (or by the
Non-Clearing Member who accepted an order forInterest Rate Futures transactions or Linked Clearing
thereof from the concerned intermediate broker or its
Designated Clearing Member, in the case of Securities,
etc. Clearing-Brokering Contracts) in the form of
eligible securities, the portion of the market price ofsuch eligible securities corresponding to the amount set
forth in (i) above.

29.2

Where an offeror exercises its claim for refund of the Exchange Margin set

forth in Article 29.1(1)(b) above, or for the Customer Margin set forth in Article

Margin Regulations32

29.1(2)(a) above if the offeror has deposited eligible securities as such Customer Margin,
or for the Intermediate Broker Margin set forth in Article 29.1(3)(a) above if the offeror
has deposited eligible securities as such Intermediate Broker Margin, the concernedintermediate broker or the concerned Trading Member (or the Non-Clearing Member
who accepted an order for Interest Rate Futures transactions or Linked Clearing thereof
from the concerned intermediate broker or its Designated Clearing Member, in the caseof Securities, etc. Clearing-Brokering Contracts) may refund to the offeror either theeligible securities deposited by the offeror or the negotiable securities of same series andequivalent value if there is no Offeror Outstanding Obligation with respect to the offeror,
or may refund the said margin in cash, in whole or in part, if there is any Offeror
Outstanding Obligation with respect to the offeror.
29.3
No offeror shall be allowed to exercise its claim for refund of its Exchange
Margin directly to the Exchange, unless the Exchange deems it necessary, and theofferor’s claim for refund as aforesaid shall be exercised through the concernedintermediate broker and through the concerned Trading Member (or through the
Non-Clearing Member who accepted an order for Interest Rate Futures transactions or
Linked Clearing thereof from the concerned intermediate broker and its Designated
Clearing Member, in the case of Securities, etc. Clearing-Brokering Contracts).
29.4
No offeror shall be allowed to exercise its claim for refund of its Customer
Margin directly to the concerned Trading Member (or to the Non-Clearing Member who
accepted an order for Interest Rate Futures transactions or Linked Clearing thereof fromthe concerned intermediate broker or its Designated Clearing Member, in the case of
Securities, etc. Clearing-Brokering Contracts), unless the Exchange deems it necessary,and the offeror’s claim for refund as aforesaid shall be exercised through the concernedintermediate broker.
29.5
If an offeror exercises its claim for refund relevant to the Exchange Margin, theCustomer Margin or the Intermediate Broker Margin, the concerned intermediate broker
or the concerned Trading Member (or the Non-Clearing Member who accepted an orderfor Interest Rate Futures transactions or Linked Clearing thereof from the concernedintermediate broker or its Designated Clearing Member, in the case of Securities, etc.
Clearing-Brokering Contracts) may request the offeror to bear the costs expended forconversion into cash or disposition of the securities deposited as margin by way of
deduction of the said costs from the amount of claim for refund exercised by the offeror,
to the extent that such conversion is necessary.

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Article 30.

Intermediate Broker’s Claim for Refund

30.1
An intermediate broker shall be entitled to claim a refund of the margin set forthin the following Items:(1)

If the intermediate broker has deposited the Exchange Margin, theintermediate broker shall be entitled to claim to the Exchange a refundof the amount equal to the amount of such Exchange Margin minus theamount of claim for refund set forth in Article 29.1(3)(b) hereof, minus
its Intermediate Broker Outstanding Obligation; and(2)

If the intermediate broker has deposited the Customer Margin, theintermediate broker shall be entitled to claim to the Trading Member
who received such margin a refund of the amount equal to the amountof such Customer Margin minus its Intermediate Broker Outstanding
Obligation.

30.2
An intermediate broker shall be entitled to claim a refund of the Exchange
Margin or the Customer Margin deposited by an offeror set forth in the following Items:(1)

If the offeror has deposited the Exchange Margin, the intermediate
broker shall be entitled to claim to the Exchange a refund of theamount of such Exchange Margin which represents the amount of theOfferor Outstanding Obligation of such offeror (but excluding theIntermediate Broker Obligation, if any); and(2)

If the offeror has deposited the Customer Margin, the intermediate
broker shall be entitled to claim to the Trading Member who received
such margin a refund of the amount of such Customer Margin which
represents the amount of the Offeror Outstanding Obligation of suchofferor (but excluding the Intermediate Broker Obligation, if any).

30.3
Where an intermediate broker exercises its claim for refund of the Exchange
Margin deposited in the form of eligible securities or for the Customer Margin depositedin the form of eligible securities, the concerned Trading Member (or the Non-Clearing

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34

Member who accepted an order for Interest Rate Futures transactions or Linked Clearing
thereof from the said intermediate broker or its Designated Clearing Member, in the caseof Securities, etc. Clearing-Brokering Contracts) may return to the intermediate broker
either the eligible securities deposited by the intermediate broker or the negotiablesecurities of same series and equivalent value if there is no Intermediate Broker
Outstanding Obligation with respect to the intermediate broker, or may refund the said
margin in cash, in whole or in part, if there is any Intermediate Broker Outstanding
Obligation with respect to the intermediate broker.
30.4
No intermediate broker shall be allowed to exercise its claim for refund of its
Exchange Margin directly to the Exchange, unless the Exchange deems it necessary, andthe intermediate broker’s claim for refund as aforesaid shall be exercised through theconcerned Trading Member (or through the Non-Clearing Member who accepted anorder for Interest Rate Futures transactions or Linked Clearing thereof from theintermediate broker and its Designated Clearing Member, in the case of Securities, etc.
Clearing-Brokering Contracts).
30.5

Under Securities, etc. Clearing-Brokering Contracts, with respect to theCustomer Margin deposited by an intermediate broker with the Designated Clearing
Member of the Non-Clearing Member who has accepted an order for Interest Rate
Futures transactions or Linked Clearing thereof from the intermediate broker, theintermediate broker shall not be allowed to exercise its claim for refund relevant to thesaid Customer Margin directly to the Designated Clearing Member unless the Exchange
deems it necessary, and the intermediate broker’s claim for refund as aforesaid shall be
exercised through the concerned Non-Clearing Member.
30.6

If an intermediate broker exercises its claim for refund relevant to the Exchange

Margin or the Customer Margin, the concerned Trading Member may request theintermediate broker to bear the costs expended for conversion into cash or disposition of
the eligible securities deposited as margin by way of deduction of the said costs from theamount of claim for refund exercised by the intermediate broker, to the extent that such
conversion or disposition is necessary.

Article 31.
31.1

Unrealized Profit and Loss arising from Market Fluctuation

A Customer’s unrealized profit and loss arising from the market fluctuation of

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35

Interest Rate Futures transactions shall be the amount calculated in accordance with thefollowing respective formula for each trading unit of the respective financial indices,
etc., multiplied by the sum of the trading volume, Accepted Volume (excluding the
given-up volume for each case) and the Given-up Volume based on the Customer’sorders:(1)

Profit and loss per trading unit of Three-month Euroyen futures:¥100,000,000 x [Difference between the daily settlement priceimmediately prior to the calculation and the contract price or the
Acceptance Figure] x 1/100 x [90 days/360 days](2)

Profit and loss per trading unit of Two-year ¥ SwapnoteTM, Five-year¥ SwapnoteTM, Seven-year ¥ SwapnoteTM or Ten-year ¥SwapnoteTM:¥10,000,000 x [Difference between the daily settlement priceimmediately prior to the calculation and the contract price] x 1/100(3)

Profit and loss per trading unit of Three-month TONA futures:¥2,500 x [Difference between the daily settlement price immediately
prior to the calculation and the contract price] ÷1/100

31.2
For the purpose of Article 31.1 above, in the case of a sale contract or an L-T
Link Short Position on the part of a Customer, when the daily settlement price is lessthan the contract price or the Acceptance Figure, the Customer shall gain an unrealized
profit, and when the daily settlement price is greater than the contract price or the
Acceptance Figure, the Customer shall incur an unrealized loss, and in the case of apurchase contract or an L-T Link Long Position on the part of a Customer, when thedaily settlement price is greater than the contract price or the Acceptance Figure, theCustomer shall gain an unrealized profit, and when the daily settlement price is less thanthe contract price or the Acceptance Figure, the Customer shall incur an unrealized loss.

Article 32.

Request for Additional Margin

Margin Regulations36

In addition to the margining set forth in Article 26 hereof, a Trading Member
may request a Customer to deposit an additional margin when any unrealized loss incurs,
and when so requested, the Customer shall deposit the required amount of Customer
Margin in cash not later than the time and date designated by the Trading Member,which date shall fall before the second business day following the business day on which
there occurs the day session of the trading day on which the said unrealized loss incurs.

Article 33.

Restriction on Drawing of Margin

A Trading Member shall not allow a Customer to draw cash or negotiablesecurities placed or deposited by it as margin for Interest Rate Futures contracts or L-T
Link Positions based on the Customer’s order; provided, however, that when the amountof the deposited margin is greater than the adjusted margin requirement, the Trading
Member may permit drawing in an amount not exceeding the difference between thedeposited margin and the adjusted margin requirement from the deposited margin. In
this case, the permissible amount of drawing in cash shall be limited to the amount of themargin already placed or deposited in cash less the amount of the unrealized loss.

Article 34.

Restriction on Replacement of Margin

A Trading Member shall not allow a Customer to replace any portion of the
cash or negotiable securities placed or deposited by it as margins for Interest Rate
Futures contracts or L-T Link Positions based on the Customer’s order; provided,
however, that in the case falling under either of the following Items, the Trading Member
may permit a replacement of the placed or deposited margin to the extent set forth ineach of the following Items:(1)

A Customer may replace the negotiable securities placed or depositedby it as margin with cash or negotiable securities having the value
equal to or greater than the value of the placed or deposited negotiablesecurities.

(2)

A Customer may replace any cash placed or deposited by it as margin
with the negotiable securities having the value equivalent to or greaterthan the amount of the placed or deposited cash.

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37

Provided, however,that if there is any unrealized loss, the cash may be replaced with thenegotiable securities only to the extent of the balance thereof after
deduction of the amount of the unrealized loss.

Article 35.

Refund of Margin

35.1
If Interest Rate Futures contracts or L-T Link Positions based on a certain
Customer’s order cease to exist as a result of offsetting transaction or the final settlement
effected with respect to such Customer’s unsettled Interest Rate Futures contract or L-T
Link Position based on such Customer’s order, or the expiration of the option exercisable
period granted for such unsettled Interest Rate Futures contract or L-T Link Position
without allocation being received with respect to a sale contract specified in the Special
Provisions for Options, the Trading Member shall, upon receipt of the Customer’s claim
for refund of the Customer Margin or upon receipt of the instruction from the Customer
on its exercise of the claim for refund of the Exchange Margin towards the Exchange,
refund to the Customer the Customer Margin or the Exchange Margin, as the case may
be, which such Trading Member is obligated to refund to such Customer without delay.
35.2
When a Trading Member (or a Non-Clearing Member who accepted an orderfor Interest Rate Futures transactions or Linked Clearing thereof or its Designated
Clearing Member, in the case of Securities, etc. Clearing-Brokering Contracts) who has
deposited the Exchange Margin received from a Customer by way of replacement
deposit of the Customer Margin deposited by the Customer refunds the Customer
Margin to the Customer, the Customer’s claim for refund of the Exchange Margin shallextinguish to the extent of the amount of Customer Margin so refunded, andsimultaneously with such extinguishment, a claim for refund of the same amount of
Exchange Margin shall arise to the Trading Member.
35.3
When an intermediate broker or a Trading Member (or a Non-Clearing Member
who accepted an order for Interest Rate Futures transactions or Linked Clearing thereof
from an intermediate broker or its Designated Clearing Member, in the case of
Securities, etc. Clearing-Brokering Contracts, which interpretation shall apply
hereinbelow in this Article 35.3) who has deposited the Exchange Margin by way of
replacement deposit of the Intermediate Broker Margin deposited by an offeror or the
Customer Margin refunds the Intermediate Broker Margin or the Customer Margin to theofferor, the offeror’s claim for refund of the Exchange Margin shall extinguish to the

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38

extent of the amount of margin so refunded, and simultaneously with suchextinguishment, a claim for refund of the same amount of the Exchange Margin shallarise to the intermediate broker or the Trading Member.

Article 36.
Margin36.1

Payment of Unrealized Profit or Transfer of Unrealized Profit to

Where an unrealized profit has accrued on an unsettled Interest Rate Futurescontract or an unsettled L-T Link Position based on a Customer’s order, if the amount ofmargin deposited by the Customer becomes greater than the adjusted margin
requirement, the Customer may request the Trading Member concerned to pay out incash or transfer to the margin an amount up to the difference between the deposited
margin and the adjusted margin requirement or the amount of the unrealized profit,
whichever is smaller. When so requested by the Customer, the Trading Member shall
pay out in cash or transfer to the margin the said amount without delay.
36.2

Where an unrealized profit has accrued on an unsettled Interest Rate Futurescontract or an unsettled L-T Link Position based on a Customer’s order, if the amount ofmargin deposited by the Customer becomes equal to or less than the margin requirement,
the Trading Member concerned shall transfer into the margin deposited by the Customer
without delay the amount equal to the difference between the deposited margin and themargin requirement out of the unrealized profit, to the extent of the amount of suchunrealized profit.
36.3
A Japanese Yen Interest Rate Remote Trading Member may pay unrealized
profits to Customers under Article 36.1 above in cash denominated in any currency aswell as Japanese Yen.

CHAPTER IV.
POSITION TRANSFER, ETC. UPON SUSPENSION FROM
TRANSACTIONS OR OTHER MEASURES TAKEN

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39

Article 37.
Taken

Duties upon Suspension from Transactions or Other Measures

37.1
Where a Trading Member (or a Non-Clearing Member who accepted an orderfor Interest Rate Futures transactions or Linked Clearing thereof or its Designated
Clearing Member, in the case of Securities, etc. Clearing-Brokering Contracts) becomesor is deemed likely to become insolvent, and is thereby ordered suspension fromtransactions or other measures pursuant to Articles 61 through 63 of the Trading Member
Regulations, if the Exchange decides to cause the Trading Member to transfer or
liquidate Unsettled Positions of its Customers (except for offerors; this exception shallapply hereafter in this Article 37) pursuant to Article 38-2.1 of Trading Member
Regulations and Article 21.1 hereof, the Trading Member shall immediately notify the
Customers of the fact of such imposition of the disciplinary measure. If a Customer
receiving the said notice is an intermediate broker, the intermediate broker shall notify
its offerors of the applicable matters according to the said notice.
37.2

If, due to imposition of any disciplinary measure on a Trading member, theExchange decides to cause the Trading Member (or a Non-Clearing Member who
accepted an order for Interest Rate Futures transactions or Linked Clearing thereof or its
Designated Clearing Member, in the case of Securities, etc. Clearing-Brokering
Contracts) to transfer or liquidate Unsettled Positions of its Customers pursuant to
Article 38-2.1 of Trading Member Regulations and Article 21.1 hereof, the Customer
concerned shall take either of the following actions:(1)

If the Customer desires position transfer, it shall: (i) request anotherTrading Member to accept the position transfer and obtain its consent
by the time and date designated by the Exchange, and (ii) communicate
the position transfer to the Trading Member on which the disciplinary
measure has been imposed (hereinafter called the “Suspended
Member”) and (iii) establish an Interest Rate Futures Transactions
Account specified in Article 5 of the Brokering Terms with the positiontransferee; and(2)

If the Customer desires liquidation of the Unsettled Positions, it shallgive an instruction on the liquidation to the Suspended Member by thetime and date designated by the Exchange.

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37.3
If a Customer fails to take either of the actions set forth in Items (1) and (2) ofArticle 37.2 above by the time and date designated by the Exchange, the Exchange shallliquidate the Customer’s the Unsettled Positions for its account in the manner designatedby the Exchange.
37.4
Where the Customer is an intermediate broker, and if a Trading Member having
accepted an order for Interest Rate Futures transactions, or Linked Clearing (or, in thecase of Securities, etc. Clearing-Brokering Contracts, a Non-Clearing Member who
accepted an order for Interest Rate Futures transactions or Linked Clearing thereof, or its
Designated Clearing Member) becomes a Suspended Member, and the obligations tosuch Suspended Member owed by the Customer/intermediate broker who intermediatedsuch Interest Rate Futures transactions or L-T Link Positions have been due and payableby acceleration of debt, the provisions of Articles 37.2 and 37.3 above shall apply
mutatis mutandis to the offeror. In such case, the term “Customer” as used in Articles
37.2 and 37.3 above shall be read as “offeror”, and “Suspended Member” as used in
Article 37.2 hereof shall be read as “intermediate broker” respectively.

Article 38.
Exceptions for Customer’s Claim for Refund of Exchange Margin
Deposited by Replacement Deposit
38.1
With respect to an Interest Rate Futures contract or L-T Link Position based on
a Customer’s order, if the Customer has deposited the Customer Margin with a
Suspended Member or its Designated Clearing Member (where such Suspended Member
is a Non-Clearing Member) and such Suspended Member or Designated Clearing
Member has deposited the Exchange Margin by way of replacement deposit, theCustomer shall have the claim for refund of the Exchange Margin so deposited in eitherof the following amounts whichever is smaller, notwithstanding the provisions of Article
28.1(2)(b) hereof:(1)

The amount of the Customer Margin deposited by the Customer minus
its Customer Outstanding Obligation; or(2)Out of the total amount of Exchange Margins deposited with the
Exchange by the Suspended Member or its Designated Clearing
Member by way of replacement deposit under one or more of the

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41

categories set forth in Article 6 hereof under which the Exchange
Margin with respect to replacement depositing of the Customer’s
margin has been deposited, after the cost required for realization ofeligible securities deposited as such margin(s) being deducted, theamount ascribed to such Customer under each category, which shall becalculated pro rata to the amount obtained under Item (1) above.
38.2
A Customer may not exercise the claim for refund of Exchange Margin entitledto it under Article 38.1 above until the lapse of a reasonable time of period required forthe realization of eligible securities deposited as margins to the extent that suchrealization is necessitated by the Exchange, as well as the calculation of the amount ofclaim for refund of Exchange Margin entitled to each Customer. The Customer shallcomply with the determination of the Exchange as to the amount of claim for refund of
Exchange Margin entitled to it, so long as such determination was made by the
Exchange with due care.

Article 39.

Exceptions for Offeror’s Claim for Refund of Exchange Margin

Deposited by Replacement Deposit
39.1
With respect to an Interest Rate Futures contract or L-T Link Position of theofferor, where the offeror has deposited the Customer Margin with a Suspended Member
or its Designated Clearing Member (where such Suspended Member is a Non-Clearing
Member) and such Suspended Member or Designated Clearing Member has depositedthe Exchange Margin by way of replacement deposit, the offeror shall have the claim forrefund of the Exchange Margin so deposited in either of the following amounts
whichever is smaller, notwithstanding the provisions of Article 29.1(2)(b) hereof:(1)

The amount of the Customer Margin deposited by the offeror minus its
Offeror Outstanding Obligation; or(2)Out of the total amount of Exchange Margins deposited with the
Exchange by the Suspended Member or its Designated Clearing
Member by way of replacement deposit under one or more of thecategories set forth in Article 6 hereof under which the Exchange
Margin with respect to replacement depositing of the offeror’s margin
has been deposited, after the cost required for realization of eligible

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42

securities deposited as such margin(s) being deducted, the amountascribed to such offeror under each category, which shall be calculated
pro rata to the amount obtained under Item (1) above with respect toeach offeror subject to such category of replacement deposit.
39.2
With respect to an Interest Rate Futures contract or L-T Link Position of theofferor, where (i) the offeror has deposited the Intermediate Broker Margin with anintermediate broker and (ii) such intermediate broker or the Suspended Member who
accepted from such intermediate broker such order for Interest Rate Futures transactions
or Linked Clearing thereof (or the Non-Clearing Member who accepted from suchintermediate broker such order for Interest Rate Futures transactions or Linked Clearing
thereof or its Designated Clearing Member, in the case of Securities, etc.
Clearing-Brokering Contracts) has deposited the Exchange Margin by way of
replacement deposit, the offeror shall have the claim for refund of the Exchange Margin
so deposited by such intermediate broker or such Suspended Member or such Designated
Clearing Member, as the case may be, in either of the following amounts whichever issmaller, notwithstanding the provisions of Article 29.1(3)(b) hereof:(1)

The amount of the Intermediate Broker Margin deposited by the offeror
minus its Offeror Outstanding Obligation; or(2)Out of the total amount of Exchange Margins deposited with the
Exchange by the intermediate broker or the Suspended Member or its
Designated Clearing Member by way of replacement deposit under one
or more of the categories set forth in Article 6 hereof under which the
Exchange Margin with respect to replacement depositing of theofferor’s margin has been deposited, after the cost required forrealization of eligible securities deposited as such margin(s) being
deducted, the amount ascribed to such offeror under each category,
which shall be calculated pro rata to the amount obtained under Item
(1) above.

39.3
An offeror may not exercise the claim for refund of Exchange Margin entitledto it under Articles 39.1 and 39.2 above until the lapse of a reasonable time of periodrequired for the realization of eligible securities deposited as margins to the extent thatsuch realization is necessitated by the Exchange, and the calculation of the amount ofclaim for refund of Exchange Margin entitled to each offeror. The offeror shall comply

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with the determination of the Exchange as to the amount of claim for refund of
Exchange Margin entitled to it, so long as such determination was made by the
Exchange with due care.

Article 40.

Treatment of Customer’s Margin for Transferred Positions

40.1
With respect to the Unsettled Positions which become subject to positiontransfer pursuant to Article 37 hereof, the margins deposited by or for the Customer withrespect to such Unsettled Positions shall be treated as follows:(1)

Where the Customer has deposited Exchange Margin for thosepositions, the amount of Exchange Margin set forth in Article 28.1(1)hereof shall be deemed to have been deposited by the positiontransferee (and its Designated Clearing Member if the positiontransferee is a Non-Clearing Member) acting as agent for the Customer
by way of direct deposit; and(2)

Where the Customer has deposited Customer Margin with theSuspended Member (or a Non-Clearing Member who accepted theorder for Interest Rate Futures transactions or Linked Clearing thereofor its Designated Clearing Member, in the case of Securities, etc.
Clearing-Brokering Contracts) and such Suspended Member or
Non-Clearing Member or Designated Clearing Member, as the casemay be, has deposited the Exchange Margin by way of replacement
deposit with respect to such Customer, the amount of claim for refund
entitled to the Customer pursuant to Article 38.1 hereof shall bedeemed to have been deposited as Exchange Margin with the Exchangeby the position transferee (and its Designated Clearing Member if theposition transferee is a Non-Clearing Member) acting as agent for the
Customer by way of direct deposit, and to the extent of the said amountof claim for refund entitled to the Customer, the Customer’s claim forrefund of the Customer Margin towards the Suspended Member (or the
Non-Clearing Member who accepted the order for Interest Rate Futurestransactions or Linked Clearing thereof or its Designated Clearing
Member, in the case of Securities, etc. Clearing-Brokering Contracts)
shall extinguish.

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40.2
In the case set forth in Article 40.1 above, the Customer shall, notwithstanding
the provisions of Article 28.3 hereof, exercise its claim for refund of Exchange Margin to
the Exchange through the position transferee (and its Designated Clearing Member if theposition transferee is a Non-Clearing Member) acting as its agent.
40.3
If the amount of Exchange Margin deemed to have been directly deposited by
the Customer pursuant to Article 40.1 hereof falls short of the SPAN Margin
Requirement designated by the position transferee, the Customer shall deposit an amount
not less than the shortfall as margin with the position transferee.

Article 41.
Positions

Treatment of Offeror’s Margin Deposited for Transferred

41.1
With respect to the Unsettled Positions which become subject to positiontransfer pursuant to Article 37 hereof, the margins deposited by or for the offeror withrespect to such Unsettled Positions shall be treated as follows:(1)

Where the offeror has deposited Exchange Margin for those positions,the amount of Exchange Margin set forth in Article 29.1(1) hereof shallbe deemed to have been deposited by the position transferee (and its
Designated Clearing Member if the position transferee is a
Non-Clearing Member) acting as agent for the offeror by way of direct
deposit;(2)

Where the offeror has deposited Customer Margin with the Suspended
Member (or a Non-Clearing Member who accepted the order forInterest Rate Futures transactions or Linked Clearing thereof or its
Designated Clearing Member, in the case of Securities, etc.
Clearing-Brokering Contracts) and such Suspended Member or
Non-Clearing Member or Designated Clearing Member, as the casemay be, has deposited the Exchange Margin by way of replacement
deposit with respect to such offeror, the amount of claim for refund
entitled to the offeror pursuant to Article 39.1 hereof shall be deemed
to have been deposited as Exchange Margin with the Exchange by the
position transferee (and its Designated Clearing Member if the position

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45

transferee is a Non-Clearing Member) acting as agent for the offeror by
way of direct deposit, and to the extent of the said amount of claim forrefund entitled to the offeror, the offeror’s claim for refund of the
Customer Margin towards the Suspended Member (or the
Non-Clearing Member who accepted the order for Interest Rate Futurestransactions or Linked Clearing thereof or its Designated Clearing
Member, in the case of Securities, etc. Clearing-Brokering Contracts)
shall extinguish; and(3)

In a case where (i) the offeror has deposited the Intermediate Broker
Margin with an intermediate broker and (ii) such intermediate broker or
the Suspended Member who accepted from such intermediate broker
such order for Interest Rate Futures transactions or Linked Clearing
thereof (or the Non-Clearing Member who accepted from suchintermediate broker such order for Interest Rate Futures transactions or
Linked Clearing thereof or its Designated Clearing Member, in the caseof Securities, etc. Clearing-Brokering Contracts) has deposited the
Exchange Margin by way of replacement deposit, the amount of claim
for refund entitled to the offeror pursuant to Article 39.2 hereof shall bedeemed to have been deposited as Exchange Margin with the Exchangeby the position transferee (and its Designated Clearing Member if theposition transferee is a Non-Clearing Member) acting as agent for theofferor by way of direct deposit, and to the extent of the said amount ofclaim for refund entitled to the offeror, the offeror’s claim for refund of
the Intermediate Broker Margin towards the intermediate broker shallextinguish.

41.2
In the case set forth in Article 41.1 above, the offeror shall, notwithstanding theprovisions of Article 29.3 hereof, exercise its claim for refund of Exchange Margin to the
Exchange through the intermediate broker (unless such intermediate broker falls under
the category set forth in Article 37.4 hereof) and the position transferee (and its
Designated Clearing Member if the position transferee is a Non-Clearing Member)
acting as its agent.
41.3
If the amount of Exchange Margin deemed to have been directly deposited by
the offeror pursuant to Article 41.1 hereof falls short of the SPAN Margin Requirement
designated by the position transferee, the offeror shall place or deposit an amount not

Margin Regulations46

less than the shortfall as margin with the position transferee.

Article 42.
Positions

Treatment of Customer’s Margin Deposited for Liquidated

When Unsettled Positions are liquidated with respect to a Customer, theCustomer’s margins relevant to such positions shall be treated as follows:(1)

The Customer shall have the right to directly exercise against the
Exchange the claim for refund of the Exchange Margin deposited by itwith the Exchange through the Suspended Member (or the
Non-Clearing Member who accepted the order for Interest Rate Futurestransactions or Linked Clearing thereof and its Designated Clearing
Member, in the case of Securities, etc. Clearing-Brokering Contracts)
acting as its agent by way of direct deposit, to the extent of the amountof claim for refund set forth in Article 28.1(1) hereof notwithstanding
the provisions of Article 28.3 hereof; and(2)

Where the Customer has deposited Customer Margin with theSuspended Member or its Designated Clearing Member (where such
Suspended Member is a Non-Clearing Member) and such Suspended
Member or Designated Clearing Member, as the case may be, hasdeposited the Exchange Margin with the Exchange by way of
replacement deposit, the Customer shall have the right to directly
exercise against the Exchange the claim for refund of an amount notexceeding the amount of claim for refund of the Exchange Margin
entitled to it pursuant to Article 38.1 hereof notwithstanding theprovisions of Article 28.3 hereof, and upon exercise of such claim, theclaim for refund of the Customer Margin held by the Customer against
the Trading Member (or the Non-Clearing Member who accepted theorder for Interest Rate Futures transactions or Linked Clearing thereofor its Designated Clearing Member, in the case of Securities, etc.
Clearing-Brokering Contracts) with whom the Customer has deposited
the Customer Margin shall extinguish to the extent of the amountreceived by the Customer upon the exercise of the foregoing claim forrefund.

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47

Article 43.

Treatment of Offeror’s Margin Deposited for Liquidated Positions

When Unsettled Positions are liquidated with respect to an offeror, the offeror’s
margins relevant to such positions shall be treated as follows:(1)

The offeror shall have the right to directly exercise against the
Exchange the claim for refund of the Exchange Margin deposited by itwith the Exchange through the intermediate broker and the Suspended
Member (or the Non-Clearing Member who accepted the order forInterest Rate Futures transactions or Linked Clearing thereof and its
Designated Clearing Member, in the case of Securities, etc.
Clearing-Brokering Contracts) acting as its agent by way of direct
deposit, to the extent of the amount of claim for refund set forth in
Article 29.1(1) hereof notwithstanding the provisions of Article 29.3
hereof;(2)

Where the offeror has deposited the Customer Margin with theSuspended Member or its Designated Clearing Member (where such
Suspended Member is a Non-Clearing Member) and such Suspended
Member or Designated Clearing Member, as the case may be, hasdeposited the Exchange Margin with the Exchange by way of
replacement deposit, the offeror shall have the right to directly exercise
against the Exchange the claim for refund of an amount not exceeding
the amount of claim for refund of the Exchange Margin entitled to it
pursuant to Article 39.1 hereof notwithstanding the provisions ofArticle 29.3 hereof, and upon exercise of such claim, the claim forrefund of the Customer Margin held by the offeror against the Trading
Member (or the Non-Clearing Member who accepted the order forInterest Rate Futures transactions or Linked Clearing thereof or its
Designated Clearing Member, in the case of Securities, etc.
Clearing-Brokering Contracts) with whom the offeror has deposited theCustomer Margin shall extinguish to the extent of the amount received
by the offeror upon the exercise of the foregoing claim for refund; and(3)

In a case where (i) the offeror has deposited the Intermediate Broker

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Margin with an intermediate broker and (ii) such intermediate broker or
the Suspended Member who accepted from such intermediate broker
such order for Interest Rate Futures transactions or Linked Clearing
thereof (or the Non-Clearing Member who accepted from suchintermediate broker such order for Interest Rate Futures transactions or
Linked Clearing thereof or its Designated Clearing Member, in the caseof Securities, etc. Clearing-Brokering Contracts) has deposited the
Exchange Margin with the Exchange by way of replacement deposit,
the offeror shall have the right to directly exercise against the
Exchange the claim for refund of an amount not exceeding the amountof claim for refund of the Exchange Margin entitled to it pursuant to
Article 39.2 hereof notwithstanding the provisions of Article 29.3
hereof, and upon exercise of such claim, the claim for refund of theIntermediate Broker Margin held by the offeror against theintermediate broker shall extinguish to the extent of the amountreceived by the offeror upon the exercise of the foregoing claim forrefund.

CHAPTER V.
MISCELLANEOUS PROVISIONS

Article 44.

Change in Settlement Method, etc.

If the Exchange determines the conditions for postponement of the settlement
dates or the clearing terms and conditions for Interest Rate Futures contracts or L-T Link
Positions in accordance with Article 99 or 100 of the Clearing Regulations, the Exchange
may change the deadline (time and date) for depositing of Exchange Margin under
Articles 7 through 12 hereof and depositing of Non-Clearing Member Margin under
Article 11 hereof, and take necessary measures incidental to such changes.

Article 45.

Standard Time

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45.1

Time indicated in these Regulations is a Japan time.

45.2

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

SUPPLEMENTARY PROVISIONS
These Amended Regulations shall take effect as from January10, 2017.

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

SUPPLEMENTARY PROVISIONS
1. These Amended Regulations shall take effect as from July 3, 2017.
2. At the time of enforcement of these Amended Regulations, a Trading Member or a
Customer who has deposited negotiable securities, etc. with the Exchange asprescribed in Appendix 1, Paragraphs 2 through 4 and Paragraphs 6 through 8 andAppendix 2, Paragraphs 2 through 4 and Paragraphs 6 through 11 before theamendment shall receive return of such negotiable securities, etc.

SUPPLEMENTARY PROVISIONS
These Amended Regulations shall take effect as from January 9, 2018.

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SUPPLEMENTARY PROVISIONS
These Amended Regulations shall take effect as from January 14, 2020.

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

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

SUPPLEMENTARY PROVISIONS
These Amended Regulations shall take effect as from January 9, 2024.

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Appendix 1
Kind of negotiable securities which Exchange Member may deposit
as eligible securities and applicable multiplier thereof (in relation to Article 7)
Kind of negotiable securities(Note 3)

Applicable market price multiplier(Note 2)

1. Japanese Government (1) Japanese Government bonds (not including floating
bonds issued by the country
rate Japanese Government bonds, book-entry Japaneseof Japan
Government bonds eligible for principal STRIPS(Separate Trading of Registered Interest and Principal of
Securities) and book-entry Japanese Government bonds
eligible for coupon STRIPS) and treasury discount bills(treasury bills and financing bills)
a. Within 1 year to maturity:
99%
b. Over 1 year to 5 years to maturity:c. Over 5 years to 10 years to maturity:
d. Over 10 years to 20 years to maturity:
e. Over 20 years to 30 years to maturity:f.

Over 30 years to maturity:

98%
97%
96%
94%

93%

(2) Book-entry Japanese Government bonds eligible for
STRIPSa. Within 1 year to maturity:
99%
b. Over 1 year to 5 years to maturity:
98%
c. Over 5 years to 10 years to maturity:
97%
d. Over 10 years to 20 years to maturity:
95%
e. Over 20 years to 30 years to maturity:
93%
f. Over 30 years to maturity:
2. Stock (except for stockacquisition right) (Note 1)

91%

70%

(Note 1) Limited only to those listed on an exchange market within Japan.
(Note 2) The market price of above eligible securities shall be determined as follows:(1)

For the negotiable securities listed in 1 above:

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a.

If their reference prices for transactions are published by Japan
Securities Dealers Association:
The average of such pricesb.

If their reference prices for transactions are not published by
Japan Securities Dealers Association:
The closing price quoted on an exchange market within Japan (ifthey are listed on more than one (1) exchange market within
Japan, the exchange market within Japan designated by the
Exchange; the same interpretation shall apply hereinbelow)

c.

(2)

If there is no closing price quoted on the relevant market in thecase of b. above:
The last bid or asked price quoted on the relevant market

For the negotiable securities listed in 2 above:a.

The closing price quoted on an exchange market within Japanb.

If there is no closing price quoted on the relevant market in thecase of a. above:
The last bid or asked price quoted on the relevant market(Note 3) Limited only to those with respect to which the fair market value is available byany one of the ways set forth in Note 2 above.

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Appendix 2
Kind of negotiable securities which Customer may deposit as eligible
securities and applicable multiplier thereof (in relation to Article 27)
Kind of negotiable securities(Note 3)

Applicable market price / principal multiplier(Note 2)

1. Japanese Government (1) Japanese Government bonds (not including floating
bonds issued by the country
rate Japanese Government bonds, book-entry Japaneseof Japan
Government bonds eligible for principal STRIPS(Separate Trading of Registered Interest and Principal of
Securities) and book-entry Japanese Government bonds
eligible for coupon STRIPS) and treasury discount bills(treasury bills and financing bills)
a. Within 1 year to maturity:
99%
b. Over 1 year to 5 years to maturity:c. Over 5 years to 10 years to maturity:
d. Over 10 years to 20 years to maturity:
e. Over 20 years to 30 years to maturity:f.

Over 30 years to maturity:

98%
97%
96%
94%

93%

(2) Book-entry Japanese Government bonds eligible for
STRIPSa. Within 1 year to maturity:
99%
b. Over 1 year to 5 years to maturity:
98%
c. Over 5 years to 10 years to maturity:
97%
d. Over 10 years to 20 years to maturity:
95%
e. Over 20 years to 30 years to maturity:
93%
f. Over 30 years to maturity:
2. Stock (except for stockacquisition right) (Note 1)

91%

70%

(Note 1) Limited only to those listed on an exchange market within Japan.
(Note 2) The market price of above eligible securities shall be determined as follows:

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(1)

For the negotiable securities listed in 1 above:a.

If their reference prices for transactions are published by Japan
Securities Dealers Association:
The average of such pricesb.

If their reference prices for transactions are not published by
Japan Securities Dealers Association:
The closing price quoted on an exchange market within Japan (ifthey are listed on more than one (1) exchange market within
Japan, the exchange market within Japan designated by the
Exchange; the same interpretation shall apply hereinbelow)

c.

(2)

If there is no closing price quoted on the relevant market in thecase of b. above:
The last bid or asked price quoted on the relevant market

For the negotiable securities listed in 2 above:a.

The closing price quoted on an exchange market within Japanb.

If there is no closing price quoted on the relevant market in thecase of a. above:
The last bid or asked price quoted on the relevant market(Note 3) Limited only to those with respect to which the fair market value is available byany one of the ways set forth in Note 2 above.

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