[English Translation]

TRADING REGULATIONSTOKYO FINANCIAL EXCHANGE INC.

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

Trading Regulations

Table of Contents
Page
CHAPTER I. GENERAL PROVISIONS......................................................................... 1
Article 1.
Purpose ................................................................................................... 1
Article 1-2. Trading Member Regulations, etc. ......................................................... 2
Article 2.
Definitions .............................................................................................. 2
CHAPTER II. TYPES OF MARKET DERIVATIVES CONTRACTS AND CONTRACTMONTHS .................................................................................................... 8
Article 3.
Types of Market Derivatives Contracts and Financial Indices, etc. ....... 8
Article 3-2. Standardized Yen Interest Rate Swap Contract .................................... 10
Article 4.
Contract Months ................................................................................... 11
CHAPTER III. MATCHING FOR MARKET DERIVATIVES CONTRACTS ON THE
EXCHANGE MARKET ........................................................................... 15
Article 5.
Market Trading Period, etc. .................................................................. 15
Article 6.
Article 6-2.
Article 6-3.
Article 7.
Article 8.

Exchange Holiday, etc. ......................................................................... 16
Business Day ........................................................................................ 17
Trading Day .......................................................................................... 17
Temporary Suspension of Matching and Off-hour Matching .............. 17
Notice of Temporary Suspension and Off-hour Matching ................... 17

CHAPTER IV.

METHODS OF EXECUTION, etc. OF MARKET DERIVATIVES
TRANSACTIONS..................................................................................... 17

Section 1. General Provisions ............................................................................................... 18
Article 9.
Auction Method .................................................................................... 18
Article 9-2. Precedence of Bids and Offers matched in accordance with Principle ofPrice/Time Priority ............................................................................... 18
Article 10.
Individual Auction ................................................................................ 19
Article 11.
Bids and Offers ..................................................................................... 22
Article 12.
Trading Unit ......................................................................................... 24
Article 13.
Posting of Contract Price ...................................................................... 24
Article 14.
Suspension of Market Derivatives Transactions .................................. 25
Article 14-2. Invalidation of Market Derivatives Contracts ...................................... 25
Article 14-2-2. Publication of Order of Error Trade..................................................... 26
Article 14-3. Publication, etc. of Decision of Invalidation........................................... 26
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Article 14-4. Invalidation of Market Derivatives Contracts in Case of Loss of Recordof Contracts due to Natural Disaster, etc. ............................................. 27
Article 15.
Notice, etc. of Contents Inputted for Bids and Offers .......................... 27
Article 16.
Matching of Bid and Offer ................................................................... 28
Article 17.
Securities, etc. Clearing-Brokering Contracts ...................................... 28
Article 18.
Notice of Execution of Market Derivatives Contract ........................... 28
Article 19.
Market Derivatives Transaction for Error Trade Correction ................ 28
Article 20.
(Deleted) ............................................................................................... 29
Section 2. Strategy Trade ....................................................................................................... 29
Article 20-2. Strategy Trade ....................................................................................... 29
Article 20-3. Substitution of Words for Interpretation of Strategy Trade .................. 30
Section 3. Block Trade ........................................................................................................... 31
Article 20-4. Block Trade .......................................................................................... 31
Article 20-5. Method of Block Trade ......................................................................... 31
Article 20-6. Time for Application for Block Trade .................................................. 32
Article 20-7. Execution of Market Derivatives Contract by Block Trade ................. 32
Article 20-8. Publication of Contract Price for Block Trade ..................................... 33
Article 20-9. Suspension of Block Trade ................................................................... 33
CHAPTER V. GIVE-UP................................................................................................... 34
Article 20-10. Give-up.................................................................................................. 34
Article 20-11. Give-up Registration ............................................................................. 34
Article 20-12. Object of Give-up.................................................................................. 35
Article 20-13. Give-up Notification ............................................................................. 35
Article 20-14. Take-up Notification, etc. ...................................................................... 36
Article 20-15. Treatment of Market Derivatives Transaction for Give-up ................... 36
Article 20-16. Particulars for Give-up .......................................................................... 37
CHAPTER VI.
Article 21.
Article 22.
Article 23.

ARISING, etc. OF L-T LINK POSITION .............................................. 37
Arising of L-T Link Position ................................................................ 37
Method of Indication of Bids and Offers, Minimum Price Fluctuation
and Trading Unit concerning Overseas Positions ................................. 38
Financial Index for L-T Link Positions ................................................ 38

Article 24.
Article 25.
Article 26.

Contract Months of L-T Link Positions ............................................... 38
Dispatch of Notice by Exchange on Exchange Holiday....................... 39
Deadline for Dispatch of Notice by Exchange ..................................... 39

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Article 27.
Non-dispatch of Notice by Exchange ................................................... 39
Article 28.
Notification, etc. of Details of L-T Link Position ................................ 40
Article 28-2. Whether for a Customer Account or for a House Account for L-T Link
Position ................................................................................................. 41
CHAPTER VII. OFFSETTING TRANSACTIONS ........................................................ 42
Article 29.
Offsetting Transactions ......................................................................... 42
Article 30.and 31 (Deleted) .......................................................................................... 42
CHAPTER VIII. MARK-TO-MARKET ......................................................................... 42
Article 32.
Daily Settlement Price, etc. .................................................................. 42
Articles 33 through 37 (Deleted) ............................................................................. 42
CHAPTER IX. (Deleted) .................................................................................................. 43
Articles 37-2 through 37-6 (Deleted) ....................................................................... 43
CHAPTER X. MARGIN .................................................................................................. 43
Article 38.
Margins, etc. ......................................................................................... 43
Articles 38-2 through 48-4

(Deleted) ....................................................................... 43

CHAPTER XI. FINAL SETTLEMENT .......................................................................... 43
Article 49.
Final Settlement .................................................................................... 43
Articles 50 through 63 (Deleted) ............................................................................. 44
CHAPTER XII. RESTRICTIONS ON MARKET DERIVATIVES TRANSACTIONS . 44
Article 64.
Order Limit ........................................................................................... 44
Article 65.
Position Limit ....................................................................................... 44
Article 66.
Article 67.
Article 68.

Precedence of Customer's Order .......................................................... 44
Prohibition of Manipulation ................................................................. 45(Deleted) ............................................................................................... 45

CHAPTER XIII.
Article 69.
Article 70.
Article 71.
Article 72.

MISCELLANEOUS PROVISIONS .................................................... 45
Management Method of Membership Deposits ................................... 45
Standard Time ....................................................................................... 46(Deleted) ............................................................................................. 46
Identification of Parties to Market Derivatives Contract ..................... 46

Article 73.
Article 74.

Communication or Transportation Facilities ........................................ 46
Market Reports ..................................................................................... 46

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Article 75.
Article 76.
Article 77.
Article 78.
Article 79.

(Deleted) ............................................................................................... 47
Reporting on Market Derivatives Contracts or L-T Link Positions ..... 47
Clearing Commission ........................................................................... 47
Collection of Communication and Other Expenses ............................. 47
Dispatch of Notice on Market Derivatives Contract or L-T Link
Position ................................................................................................. 48
Article 79-2. Recordkeeping for Market Derivatives Transactions based on
Customer’s Order .....................................................................................
......................................................................................................... 49
Article 80.
Entrustment of Exchange’s Administrative Work ................................ 49
Article 81.
Method of Notice, etc. of Total Traded Volume, Total Contract Value,etc. ........................................................................................................ 49
Article 81-2. Reporting to Prime Minister ................................................................. 50
Article 82.
Official Closing Price ........................................................................... 50
Article 83.
Traders Effecting Market Derivatives Transactions via Member's
Terminal Devices .................................................................................. 51
Article 84.
Disclosure ............................................................................................. 51
Article 85.
Article 86.

Regulatory Measures on Market Derivatives Transactions, etc. .......... 51
Liability for Operation of Exchange Market, etc. ................................ 52

SUPPLEMENTARY PROVISIONS ................................................................................... 52
Appendix

Matters to be Reported or Announced .................................................. 54

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CHAPTER I.
GENERAL PROVISIONS

Article 1.

Purpose

1.1
These Regulations set forth the matters necessary to stipulate in connection withmarket derivatives transactions and arising of L-T Link Positions on the Exchange
Market and settlement thereof and other matters related thereto, in accordance with
Article 39 of the Exchange’s Articles of Incorporation. Notwithstanding the foregoing,
the following matters shall be governed by the following special provisions applicable
thereto, as well as these Regulations.
(1)

Matters necessary to be prescribed in connection with FX Daily Futurestransactions:
Special Provisions for Trading Regulations for FX Daily Futures
Transactions (hereinafter called the “FX Special Provisions”)(2)

Matters necessary to be prescribed in connection with market
derivatives contracts in which financial options are traded, andsettlement and other related matters thereto:
Special Provisions for Trading Regulations and Brokering Terms for
Options (hereinafter called “Special Provisions for Options”)(3)

Matters necessary to be prescribed in connection with Equity Index
Daily Futures transactions:
Special Provisions for Trading Regulations for Equity Index Daily
Futures Transactions (hereinafter called the “Equity Index Special
Provisions”)(4)

Matters necessary to be prescribed in connection with FX Clearing
Futures transactions:
Special Provisions for Trading Regulations for FX Clearing Futurestransactions (hereinafter called the “FX Clearing Special Provisions”)
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1.2
Amendments to Chapter Ⅱ shall be effected by obtaining the consent of the
Self-regulatory Committee.

Article 1-2.

Trading Member Regulations, etc.

1-2.1 Matters relating to Trading Members of the Exchange shall be prescribed by the
Trading Member Regulations.
1-2.2 Matters relating to margins and unsettled market derivatives contracts on the
Exchange Market shall be prescribed by the Regulations for Margin and Unsettled
Market Derivatives Contracts (hereinafter called the “Margin Regulations”), theRegulations for Margin and Unsettled Contracts for FX Daily Futures Transactions(hereinafter called the “FX Margin Regulations”) , the Regulations for Margin and
Unsettled Contracts for Equity Index Daily Futures Transactions (hereinafter called the“Equity Index Margin Regulations”) or the Regulations for Margin and Unsettled
Contracts for FX Clearing Futures transactions (hereinafter called the “FX Clearing
Margin Regulations”).

Article 2.

Definitions

The terms used herein shall have the meanings ascribed to them as below.
terms not defined below are as defined in the Articles of Incorporation.
(1)

The

A “sale contract” means a market derivatives contract under which, if
the actual figure of the relevant financial index on the final settlement
date falls short of the contract figure, a party is entitled to receive
money, and if the actual figure on the final settlement date exceeds thecontract figure, the said party shall pay money, pursuant to theconditions and in the manners prescribed by the Exchange.

(2)

A “purchase contract” means a market derivatives contract underwhich, if the actual figure of the relevant financial index on the final
settlement date exceeds the contract figure, a party is entitled to receive
money, and if the actual figure on the final settlement date falls short of2

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the contract figure, the said party shall pay money, pursuant to theconditions and in the manners prescribed by the Exchange.
(3)“Linked Overseas Exchange” means an exchange, as designatedseparately by the Exchange, located in a foreign country and operating
overseas financial instruments markets.

(4)“Linked Overseas Clearing House” means a clearing house which
undertakes clearing on behalf of a Linked Overseas Exchange.

(5)“Linked Overseas Organization” means a Linked Overseas Exchange
or a Linked Overseas Clearing House.

(6)“Linked market derivatives contract” means a market derivatives
contract or equivalent executed on a Linked Overseas Exchange basedon the index identical to such financial index as separately designatedby the Exchange. “Linked market derivatives transaction” means atransaction for a linked market derivatives contract.

(7)“L-T Link Position” means a position that has arisen under the sameterms and conditions as the position for an executed and unsettled
linked market derivatives contract.

(8)“Link Agreement” means an agreement entered into between the
Exchange and a Linked Overseas Organization with respect to linked
market derivatives contracts and L-T Link Positions, for the purpose of
facilitating market derivatives transactions.

(9)“Member Link Agreement” means either:(a)an agreement entered into by a Clearing Member who has aJapanese Yen Interest Rate Trading Membership, with the
Exchange, the Linked Overseas Organizations and a memberof the Linked Overseas Exchange in a form prescribed by the
Exchange when the Clearing Member intends to cause an L-T
Link Position to arise in its own name and for its own account;or3

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(b)an agreement entered into by a Non-Clearing Member who has
a Japanese Yen Interest Rate Trading Membership, with the
Exchange, the Linked Overseas Organizations, the Designated
Clearing Member of such Non-Clearing Member and amember of the Linked Overseas Exchange in a form
prescribed by the Exchange when the Non-Clearing Member
intends to cause an L-T Link Position to arise for its own
account and in the name of the Designated Clearing Member.

(10)“L-T Link Short Position” means an L-T Link Position for which, if theactual figure of the relevant financial index on the final settlement datefalls short of the figure of the L-T Link Position upon its arising(hereinafter called the “Acceptance Figure”, which Japanese term is“Jukan Suuchi”), a party is entitled to receive money, and if the actual
figure on the final settlement date exceeds the Acceptance Figure, thesaid party shall pay money, pursuant to the conditions and in themanners prescribed by the Exchange.

(11)“L-T Link Long Position” means an L-T Link Position for which, if theactual figure of the relevant financial index on the final settlement dateexceeds the Acceptance Figure, a party is entitled to receive money, andif the actual figure on the final settlement date falls short of the
Acceptance Figure, the said party shall pay money, pursuant to theconditions and in the manners prescribed by the Exchange.

(12)

A “price” means a figure of the financial index that is traded in a
specific market derivatives transaction.

(13)

A “price range” means a tick size, i.e., a range of minimum pricefluctuation.

(14)

A “contract price” or “traded price” means a figure of the relevant
financial index (the “contract figure”) at which a market derivatives
contract is executed.

(15)

A “strategy contract price” means a figure executed as a strategy price4

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(as defined in Article 20-2.2 hereof; this definition shall similarly apply
hereinafter).
(16)“Bid and (or) offer” referred to in Chapters III through V, VII and XII
hereof means a declaration by a party of the upper or lower limit of theprice or the strategy price at which the party desires to execute a market
derivatives contract.

(17)

An “offer” means a declaration by a party of the lower limit of the priceor the strategy price at which the party desires to execute a sale contract
as a seller.

(18)

A “bid” means a declaration by a party of the upper limit of the price or
the strategy price at which the party desires to execute a purchase
contract as a purchaser.

(19)

A “short position” means an unsettled sale contract that has been
executed with the Exchange as the counterparty in accordance with theClearing Regulations, or an unsettled L-T Link Short Position that hasarisen with the Exchange as the counterparty in accordance with theClearing Regulations.

(20)

A “long position” means an unsettled purchase contract that has been
executed with the Exchange as the counterparty in accordance with theClearing Regulations, or an unsettled L-T Link Long Position that hasarisen with the Exchange as the counterparty in accordance with theClearing Regulations.

(21)

The “auction method” means a method to execute a contract between a
specific offer and a specific bid by matching them in accordance with
Article 9 hereof.

(22)“Exchange Holiday” means any of the days as defined in the respective
Items in Article 6 hereof.

(23)

A “business day” means a day as defined in Article 6-2 hereof.

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(24)A “trading day” means a day as defined in Article 6-3 hereof.

(25)

A “Japanese bank holiday” means a bank holiday as defined in Article
15.1 of the Banking Act (Ginko-ho) (Act No. 59 of June 1, 1981).

(26)

A “Japanese banking day” means a day other than the bank holidays as
defined in Article 15.1 of the Banking Act.

(27)

A “New York bank holiday” means a holiday of the banks located in
New York City, the State of New York, the United States of America.

(28)

A “New York banking day” means a day other than the holidays of thebanks located in New York City, the State of New York, the UnitedStates of America.

(29)“Matching” means matching of a bid and an offer on an individual
auction basis in accordance with Article 10 hereof.

(30)

A “pre-open period” means a period during which bids and offers arereceived but no matching is conducted, as set forth in Article 5.1(1)hereof.

(31)“Market Trading Period” means a period for receiving bids and offers
as defined in Item (a) or (b) of Article 5.1(2) hereof.

(32)“Designated Clearing Member” means the Designated Clearing
Member as defined in Article 1-2(4) of the Trading Member
Regulations.

(33)“Executing Member” means a Trading Member who makes a give-up
notification set forth in Article 20-13.1 hereof with respect to a market
derivatives contract for which a give-up set forth in Article 20-10
hereof is intended.

(34)“Carrying Member” means a Trading Member who makes a take-up
notification set forth in any of the Items of Article 20-14.1 hereof withrespect to a market derivatives contract for which a give-up is intended.
6

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(35)“Three-month Euroyen futures” referred to in Chapters II through IV
and VI hereof and the Appendix attached hereto means a market
derivatives contract with respect to the financial index set forth in
Article 3(1) hereof, and “Three-month Euroyen futures” referred to in
Chapter VII to the end hereof means either a market derivatives
contract with respect to the financial index set forth in Article 3(1)hereof or an L-T Link Position with respect to the financial index set
forth in Article 23 hereof.

(36)(Deleted)(37)(Deleted)(38)(Deleted)(39)

A “London bank holiday” means a bank holiday by commercial
customs in London.

(40)

A “London banking day” means a day other than bank holidays bycommercial customs in London.

(41)“offer accumulation” means the total volume of offers made at a certain
price and all offers made at a lower price.

(42)“bid accumulation” means the total volume of bids made at a certain
price and all bids made at a higher price.

(43)“On-Open modifier” means the modifier applied to the On-Open orderspecified in Article 10.4 hereof (as defined in Article 9-2(3) hereof).

(44)“Reference Quarter” means, with respect to each contract month ofThree-month TONA futures specified in Article 3 (6) hereof, a period
from the third Wednesday of the month that is three months preceding
the month in which each last trading day falls (or, if such Wednesday
falls on a Japanese bank holiday, the immediately subsequent business
day of such Wednesday) to a calendar day immediately preceding the7

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third Wednesday of the month in which such last trading day falls (or, if
such Wednesday falls on a Japanese bank holiday, the immediately
subsequent business day of such Wednesday).

CHAPTER II.
TYPES OF MARKET DERIVATIVES CONTRACTS
AND CONTRACT MONTHS

Article 3.

Types of Market Derivatives Contracts and Financial Indices, etc.

The currencies, etc. to be traded for the market derivatives transactions on the
Exchange Market or the financial indices to be calculated based thereon (hereinaftercollectively called the “financial indices, etc.”) shall be defined as follows.
(1)

The financial index indicated by a figure equal to 100 minus the figureof an interest rate per annum (in percent) of 90-day Yen deposits
calculated daily on a 360-day per year basis that is announced byGeneral Incorporated Association JBA TIBOR Administration(2)

The financial index indicated by a figure equal to the sum of (i) the
present value, as of the first trading day of the standardized Two-year
Yen interest rate swap contract set forth in Article 3-2(1) hereof, of theinterest accruing semi-annually per ¥100 of such standardized swap
contract at the fixed interest rate for the period from the said first
trading day to the maturity date and (ii) the present value, as of the first
trading day of such standardized swap contract, of the nominal value of¥100 upon the maturity date (a market derivatives contract with respect
to the said financial index being hereinafter called “Two-year¥ Swapnote™”)(3)

The financial index indicated by a figure equal to the sum of (i) the
present value, as of the first trading day of the standardized Five-year
Yen interest rate swap contract set forth in Article 3-2(2) hereof, of the8

Trading Regulationsinterest accruing semi-annually per ¥100 of such standardized swap
contract at the fixed interest rate for the period from the said first
trading day to the maturity date and (ii) the present value, as of the first
trading day of such standardized swap contract, of the nominal value of¥100 upon the maturity date (a market derivatives contract with respect
to the said financial index being hereinafter called “Five-year¥ Swapnote™”)(4)

The financial index indicated by a figure equal to the sum of (i) the
present value, as of the first trading day of the standardized Seven-year
Yen interest rate swap contract set forth in Article 3-2(3) hereof, of theinterest accruing semi-annually per ¥100 of such standardized swap
contract at the fixed interest rate for the period from the said first
trading day to the maturity date and (ii) the present value, as of the first
trading day of such standardized swap contract, of the nominal value of¥100 upon the maturity date (a market derivatives contract with respect
to the said financial index being hereinafter called “Seven-year¥ Swapnote™”)(5)

The financial index indicated by a figure equal to the sum of (i) the
present value, as of the first trading day of the standardized Ten-year
Yen interest rate swap contract set forth in Article 3-2(4) hereof, of theinterest accruing semi-annually per ¥100 of such standardized swap
contract at the fixed interest rate for the period from the said first
trading day to the maturity date and (ii) the present value, as of the first
trading day of such standardized swap contract, of the nominal value of¥100 upon the maturity date (a market derivatives contract with respect
to the said financial index being hereinafter called “Ten-year¥ Swapnote™”)(6)

The financial index indicated by a figure equal to 100 minus theinterest rate per annum of the daily compounded interests during theReference Quarter calculated based on the average rates of an
uncollateralized overnight call rate published by the Bank of Japan as
the final results (a market derivatives contract with respect to the said
financial index being hereinafter called “Three-month TONA futures”)

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Article 3-2.

Standardized Yen Interest Rate Swap Contract

The standardized Yen interest rate swap contract with respect to the respective
financial indices set forth in Items (2) through (5) of Article 3 hereof shall be defined asfollows.
(1)

For the standardized Two-year Yen interest rate swap contract, the first
trading day shall be the third Wednesday of March, June, September orDecember, or the immediately subsequent business day of any such
Wednesday if such Wednesday falls on a Japanese bank holiday or on a
London bank holiday; the fixed interest rate shall be 3% per annum (ora fraction thereof based on the actual number of days per year on a
fixed 365 day basis) accruing semi-annually; the floating interest rateshall be a Six-month Euroyen LIBOR (London Interbank Offered Rate)announced by ICE Benchmark Administration Limited (hereinafter
called “IBA”); the notional principal amount shall be ¥10,000,000; andthe period up to the maturity date shall be 2 years.

(2)

For the standardized Five-year Yen interest rate swap contract, the first
trading day shall be the third Wednesday of March, June, September orDecember, or the immediately subsequent business day of any such
Wednesday if such Wednesday falls on a Japanese bank holiday or on a
London bank holiday; the fixed interest rate shall be 3% per annum (ora fraction thereof based on the actual number of days per year on a
fixed 365 day basis) accruing semi-annually; the floating interest rateshall be a Six-month Euroyen LIBOR (London Interbank Offered Rate)announced by IBA; the notional principal amount shall be ¥10,000,000;
and the period up to the maturity date shall be 5 years.

(3)

For the standardized Seven-year Yen interest rate swap contract, thefirst trading day shall be the third Wednesday of March, June,
September or December, or the immediately subsequent business dayof any such Wednesday if such Wednesday falls on a Japanese bankholiday or on a London bank holiday; the fixed interest rate shall be 3%
per annum (or a fraction thereof based on the actual number of days per
year on a fixed 365 day basis) accruing semi-annually; the floating
10

Trading Regulationsinterest rate shall be a Six-month Euroyen LIBOR (London Interbank
Offered Rate) announced by IBA; the notional principal amount shallbe ¥10,000,000; and the period up to the maturity date shall be 7 years.
(4)

For the standardized Ten-year Yen interest rate swap contract, the first
trading day shall be the third Wednesday of March, June, September orDecember, or the immediately subsequent business day of any such
Wednesday if such Wednesday falls on a Japanese bank holiday or on a
London bank holiday; the fixed interest rate shall be 3% per annum (ora fraction thereof based on the actual number of days per year on a
fixed 365 day basis) accruing semi-annually; the floating interest rateshall be a Six-month Euroyen LIBOR (London Interbank Offered Rate)announced by IBA; the notional principal amount shall be ¥10,000,000;
and the period up to the maturity date shall be 10 years.

Article 4.

Contract Months

4.1
The market derivatives contracts with respect to the respective financial indices,
etc. shall be classified into the contract months set forth below.
(1)

The contract months of Three-month Euroyen futures shall be thecalendar months in which their respective final settlement dates fall,each final settlement date being the business day immediately
following the business day on which there occurs the day session of thelast trading day set forth in Article 4.4(1) below; provided, however,
that, if the final settlement date so determined falls on a Japanese bankholiday, the immediately subsequent business day which is not a
Japanese bank holiday shall be the final settlement date.

(2)

The contract months of Two-year ¥ Swapnote™, Five-year¥ Swapnote™, Seven-year ¥ Swapnote™ and Ten-year ¥ Swapnote™
shall be the calendar months in which their respective final settlement
dates fall, each final settlement date being the business day
immediately following the business day on which there occurs the day
session of the last trading day set forth in Article 4.4(2) below;
provided, however, that, if the final settlement date so determined falls
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on a Japanese bank holiday, the immediately subsequent business day
which is not a Japanese bank holiday shall be the final settlement date.
(3)

The contract months of Three-month TONA futures shall be thecalendar month in which their respective final settlement dates fall,each final settlement date being the business day immediately
subsequent to the last trading day set forth in Article 4.4(3) below;
provided, however, that, if the final settlement date so determined falls
on a Japanese bank holiday, the immediately subsequent business day
which is not a Japanese bank holiday shall be the final settlement date.

4.2
The period for which each contract classified by the contract month set forth in
Article 4.1 above can be traded shall be as set forth below with respect to the respective
financial indices, etc.; provided, however, that the Exchange may change any such period
when the Exchange deems it necessary in order to maintain the regularity of market
derivatives transactions on the Exchange Market and protect the public or customers
interests.
(1)

Three-month Euroyen futures:
5 years
provided, however, that the period of 5 years shall be applied only tothe contract months for which their respective final settlement dates fallin any of March, June, September and December (hereinaftercollectively called the “quarterly months” in this Article 4), and in thecase of the contract months other than the quarterly months (hereinafter
called the “serial months” in this Article 4), the trading period shall be
3 months.

(2)

Two-year ¥ Swapnote™, Five-year ¥ Swapnote™, Seven-year¥ Swapnote™ and Ten-year ¥ Swapnote™:
6 months(3)

Three-month TONA futures:

5 years

4.3
The number of contract months available for trading at any time shall be as set
forth below with respect to the respective financial indices, etc.; provided, however, that
the Exchange may change any such number when the Exchange deems it necessary inorder to maintain the regularity of market derivatives transactions on the Exchange
Market and protect the public or customers interests.
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4.4

(1)

Three-month Euroyen futures:

22 contract months(2)

Two-year ¥ Swapnote™, Five-year ¥ Swapnote™, Seven-year¥ Swapnote™ and Ten-year ¥ Swapnote™:
2 contract months(3)

Three-month TONA futures:

20 contract months

The last trading day and the first trading day for each contract month withrespect to the respective financial indices, etc. shall be as set forth below; provided,
however, that the Exchange may change any such last trading day or first trading day
when the Exchange deems it necessary in order to maintain the regularity of market
derivatives transactions on the Exchange Market and protect the public or customers
interests.
(1)

Three- month Euroyen futures(a)

The last trading day shall be (i) the trading day, the day sessionof which occurs on the second business day (not counting
Japanese bank holidays) immediately preceding the third
Wednesday of March, June, September or December in thecase of the quarterly months, and (ii) the trading day, the day
session of which occurs on the second business day (notcounting Japanese bank holidays) immediately preceding thethird Wednesday of January, February, April, May, July,
August, October or November in the case of the serial months.

(b)

(2)

The first trading day for a newly listed contract month shall be
the trading day immediately following the last trading day forthe then first expiring contract month, and such new contract
month shall become available for trading from the opening of
its first trading day’s day session.

Two-year ¥ Swapnote™, Five-year ¥ Swapnote™, Seven-year¥ Swapnote™ and Ten-year ¥ Swapnote™
(a)

The last trading day shall be the trading day, the day session of
13

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which occurs on the second business day (not counting
Japanese bank holidays) immediately preceding the third
Wednesday of March, June, September or December.
(b)

If the business day on which the day session set forth in (a)above falls is a London bank holiday, the last trading day shallbe the trading day, the day session of which occurs on thebusiness day (or, if such business day falls on a Japanese bankholiday or a London bank holiday, the immediately precedingbusiness day of such business day which is not any such bankholiday) immediately preceding such London bank holiday.

(c)

(3)

The first trading day for a newly listed contract month shall be
the trading day immediately following the last trading day forthe then first expiring contract month, and such new contract
month shall become available for trading from the opening of
its first trading day’s day session.

Three-month TONA futures(a)

The last trading day shall be the trading day, the day session ofwhich occurs on the third Wednesday of March, June,
September or December (or, if such Wednesday falls on a
Japanese bank holiday, the immediately subsequent business
day of such Wednesday), and the contract month whose last
trading day falls in March shall be referred to as December
contract, the contract month whose last trading day falls inJune shall be referred to as March contract, the contract monthwhose last trading day falls in September shall be referred toas June contract, and the contract month whose last trading
day falls in December shall be referred to as September
contract. .

(b)

The first trading day for a newly listed contract month shall be
the trading day immediately following the last trading day forthe then first expiring contract month, and such new contract
month shall become available for trading from the opening of
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its first trading day’s day session.

CHAPTER III.
MATCHING FOR MARKET DERIVATIVES CONTRACTS
ON THE EXCHANGE MARKET

Article 5.

Market Trading Period, etc.

5.1
The pre-open period and the Market Trading Period for market derivatives
transactions on the Exchange Market shall be as set forth below; provided, however, thatthe last trading day’s day session for each contract month shall be as set forth in Article
5.2 below.
(1)Pre-open period: from 8:30 a.m. to 8:45 a.m.

(2)Market Trading Period(a)Day session:from 8:45 a.m. to 3:30 p.m.
provided, however, that matching will not be conducted from11:30 a.m. to 0:30 p.m.

(b)

Evening session: from 3:30 p.m. to 8:00 p.m.

5.2
The last trading day’s day session with respect to each contract month for therespective financial indices, etc. shall be as set forth below.
(1)

Three-month Euroyen futures: from 8:45 a.m. to 11:00 a.m.

(2)

Two-year ¥ Swapnote™, Five-year ¥ Swapnote™, Seven-year¥ Swapnote™ and Ten-year ¥ Swapnote™: from 8:45 a.m. to 10:00
a.m.

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(3)Three-month TONA futures: from 8:45 a.m. to 9:30 a.m.

5.3
Notwithstanding the provisions of Articles 5.1 and 5.2 above, the Exchange may
accept a cancellation requested by a Trading Member of its bids or offers in accordancewith the conditions separately prescribed by the Exchange.
5.4
The Exchange may temporarily change the pre-open period and the Market
Trading Period set forth in Articles 5.1 and 5.2 above when the Exchange deems
necessary to do so. In this case, the Exchange shall notify the Trading Members(excluding FX Daily Futures Trading Members, Equity Index Daily Futures Trading
Members, etc. and FX Clearing Futures Trading Members; the same interpretation shallapply whenever reference is made to “Trading Members” below in this Chapter III) tothat effect.

Article 6.
6.1

Exchange Holiday, etc.

The Exchange Holidays shall be as follows.
(1)

Sundays(2)

National holidays(3)

The day (not being a national holiday) immediately following anational holiday which falls on Sunday(4)

The day (not being a national holiday) for which both of its
immediately preceding calendar day and immediately subsequentcalendar day are national holidays

6.2
so.

(5)

Saturdays(6)

January 2, January 3 and December 31.

The Exchange may designate an ad hoc holiday when it deems necessary to do

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6.3

No matching shall be conducted on the Exchange Holidays and ad hoc holidays.

Article 6-2.

Business Day

A business day of the Exchange’s financial instruments market shall be a dayother than the Exchange Holidays and ad hoc holidays set forth in Article 6 hereof.

Article 6-3.

Trading Day

A trading day for market derivatives transactions on the Exchange shall be aperiod commencing on the opening of the evening session that starts after the day session
on the business day immediately preceding a specific business day and ending on theclose of the day session that starts on such specific business day.

Article 7.

Temporary Suspension of Matching and Off-hour Matching

The Exchange may temporarily suspend matching, in whole or in part, during
the Market Trading Period or temporarily conduct matching during non-trading hours
when it deems necessary to do so.

Article 8.

Notice of Temporary Suspension and Off-hour Matching

When the Exchange determines to have an ad hoc holiday or a temporary
suspension of matching, the Exchange shall give an advance notice to that effect to the
Trading Members. Should the Exchange determine to conduct matching during
non-trading hours, the Exchange shall give a notice to that effect to the Trading Members
two (2) business days before such date of off-hour matching.

CHAPTER IV.
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Trading Regulations

METHODS OF EXECUTION, etc. OF
MARKET DERIVATIVES TRANSACTIONS

Section 1. General Provisions

Article 9.

Auction Method

9.1
Market derivatives transactions on the Exchange Market shall be based on theauction method in principle.
9.2
Matching under the auction method at the opening of day session shall be
conducted in accordance with the principle of price/time priority.
9.3
During day session and evening session, matching under the auction method
shall be conducted in accordance with the principle of price/time priority.

Article 9-2.

Precedence of Bids and Offers matched in accordance with Principleof Price/Time Priority

The precedence of bids and offers matched in accordance with the principle ofprice/time priority shall be determined as follows.
(1)

In the case of bids and offers designating a price limit (hereinafter
called the “limit order(s)”), a lower offer shall take precedence overany higher offer and a higher bid shall take precedence over any lower
bid. In the case of multiple bids or offers at the same price, an earlier
bid and offer shall take precedence over any later bid and offer
respectively.

(2)

A bid or offer submitted without designating a price limit (hereinafter
called the “market order”) shall take precedence over a limit order withrespect to the price priority.

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Trading Regulations

(3)Article 10.

Notwithstanding the provision of Article 9-2(2) above, in the case of
market orders submitted during a pre-open period (hereinafter called
the “On-Open order(s)”), matching shall be conducted in accordancewith Article 10.3 hereof, and an earlier On-Open order shall takeprecedence over any later On-Open order.

Individual Auction

10.1
With respect to market derivatives transactions based on the auction method in
principle, their contracts shall be executed on an individual auction basis.
10.2
When the lowest offer (hereinafter called the “best offer”) and the highest bid(hereinafter called the “best bid”) correspond to each other as a result of the competition
among the bids, the competition among the offers, and the matching between the bids
and offers, a market derivatives contract shall be executed between the corresponding bid
and offer, at the contract price in the amount equal to the said best offer/best bid price;provided, however, that the foregoing shall not apply where the contract price isdetermined in the manner set forth in Item (1) or (2) below.
(1)

The contract price at the opening of the same day’s day session(2)

In the event that all or a part of market derivatives transactions are
suspended by the Exchange in accordance with the provisions ofArticle 14 hereof, the contract price at the time when these transactions
are resumed

10.3
When the contract price is determined in the manner set forth in Article 10.2(1)or 10.2(2) above, a market derivatives contract shall be executed at the contract pricewhich is determined by way of matching conducted in the following order of priority:(1)

Matching among limit orders:
If a bid at the price equal to or higher than the then best offer issubmitted as a result of the competition among the bids, thecompetition among the offers and the matching between the bids andoffers, a market derivatives contract shall be executed between thecorresponding limit orders at the contract price set forth in the19

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following Article 10.3(1)(a) or 10.3(1)(b), subject to the price priority
set forth in Article 9-2(1) above. In such case, no bid or offer will be
generated from the implied-out function separately prescribed by the
Exchange:(a)

The price which is included within the range between thelowest price at which the offer accumulation would exceed thebid accumulation and the highest price at which the bid
accumulation would exceed the offer accumulation, and which
satisfies both of the conditions set forth in Articles 10.3(1)(a)a.
and 10.3(1)(a)b. below:a.

b.

The volume of the offer accumulation at a certain priceis equal to or larger than the volume of the bid
accumulation at a price which is higher than the said
price by the minimum price fluctuation of the market
derivatives contract that is specified for the respective
financial indices, etc.; andThe volume of the bid accumulation at a certain price isequal to or larger than the volume of the offer
accumulation at a price which is lower than the said
price by the minimum price fluctuation of the market
derivatives contract that is specified for the respective
financial indices, etc.

(b)

If there is more than one (1) price identified in Article
10.3(1)(a) above, the price set forth in Article 10.3(1)(b)a. or
Article 10.3(1)(b)b. below:
a.
b.

(2)

If there is a price which is the same as the reference
price established by the Exchange: such priceIf there is no price which is the same as the reference
price established by the Exchange: the price which is
closest to the reference price

Matching among On-Open orders:
When both an On-Open order intending execution of sale contract andthat intending execution of purchase contract are submitted and there is20

Trading Regulations

also a contract price that has arisen from a matching among limit orders
pursuant to Article 10.3(1) above (hereinafter called the “uncrossing
price”), a market derivatives contract shall be executed between thecorresponding On-Open orders at the said contract price, subject to theprice priority set forth in Article 9-2(3) above.
(3)

Matching among limit orders (limited only to those that have not been
executed under Article 10.3(1) and those which are On-Open orders
under Article 10.3(2) above but are treated as limit orders in accordancewith Article 10.4 below):
If a bid at the price equal to or higher than the then best offer issubmitted as a result of the competition among the bids, thecompetition among the offers and the matching between the bids andoffers, a market derivatives contract shall be executed between thecorresponding limit orders at the uncrossing price, subject to the pricepriority set forth in Article 9-2(1) above. In such case, no bid or offer
will be generated from the implied-out function.

(4)

Matching among orders for strategy trade (as defined in Article 20-2.1
hereof; this definition shall similarly apply hereinafter):
A contract under strategy trade shall be executed between thecorresponding orders at the strategy contract price which is obtained inaccordance mutatis mutandis with the provision of Article 10.3(1),subject to the price priority set forth in Article 10.3(1). In such case,no bid or offer will be generated from the implied-in function
separately prescribed by the Exchange.

(5)

Matching among orders for strategy trade (limited only to those thathave not been executed under Article 10.3(4) above and thosegenerated from the implied-in function after the matching referred to in
Article 10.3(4) above):
A contract under strategy trade shall be executed between thecorresponding orders for strategy trade at the bid or offer generated
from the implied-in function after the matching referred to in Article
10.3(4) above. Provided, however, so long as any bid or offer can stillbe generated from the implied-in function even after the matching, suchbid or order will be generated and further round(s) of matching
21

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including those of the bid or offer so generated will be repeatedpursuant to this Article 10.3(5) until when no more bid or offer can begenerated from the implied-in function.
(6)

Matching among orders generated from the implied-out function after
the matching referred to in Article 10.3(5):A contract under strategy trade shall be executed between any of theseorders at the average value of the corresponding bids or offers
generated from the implied-out function. Provided, however, so longas any bid or offer can still be generated from the implied-out function
even after the matching, such bid or order will be generated and further
round(s) of matching including those of the bid or offer so generated
will be repeated pursuant to this Article 10.3(6) until when no more bid
or offer can be generated from the implied-out function.

10.4

The following conditions shall apply with respect to On-Open orders:(1)

Where there is any uncrossing price:
A market derivatives contract shall be executed between thecorresponding On- Open orders at the uncrossing price in accordancewith Article 10.3(2) above. If there is any On-Open order which
remains unexecuted, such On-Open order shall be treated after the endof matching as a limit order submitted at the uncrossing price.

(2)

Where there is no uncrossing price:
The On-Open order shall be treated as ineffective at the end ofmatching among limit orders referred to in Article 10.3(1) above.

10.5
Notwithstanding the provision of Article 10.3(6), in the case where the averagevalue set forth therein is not an integral multiple of the minimum price fluctuation of themarket derivatives contract that is specified for the respective financial indices, etc., thecontract price in such case shall be determined in the manners prescribed by the
Exchange.

Article 11.

Bids and Offers

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11.1
In order for a Trading Member to execute market derivatives contracts by theauction method, bids or offers shall be submitted through the Member’s terminal devices
as defined in Article 48 of the Trading Member Regulations. In this case, the Trading
Member shall designate the bid or offer is whether for a customer account or for a houseaccount for the Exchange’s recognition.
11.2
In order to execute a market derivatives contract, the bids or offers referred to in
Article 11.1 above shall be inputted into the Trading System as defined in Article 15 of
the Trading Member Regulations via the respective Member’s terminal devices.
11.3
Bids and offers for market derivatives contracts with respect to the respective
financial indices, etc. shall be quoted in the following manner.
(1)

Three-month Euroyen futures and Two-year ¥ Swapnote™: tothird decimal place (indicated by an integral multiple of 5/1000)

the

(2)

Five-year ¥ Swapnote™, Seven-year ¥ Swapnote™ and Ten-year¥ Swapnote™: to the second decimal place(3)

Three-month TONA futures:
integral multiple of 1/1000)

third decimal place (indicated by an

11.4
The minimum price fluctuation of bids and offers for the respective financial
indices, etc. shall be as follows.

11.5

(1)

Three-month Euroyen futures and Two-year ¥ Swapnote™: 0.005(2)

Five-year ¥ Swapnote™, Seven-year ¥ Swapnote™ and Ten-year¥ Swapnote™: 0.01

(3)

Three-month TONA futures:

0.001

The Exchange may reject to receive any bid or offer if:(1)

the price of a bid or an offer is outside of a specific price range set by
the Exchange, which price range is set above and below the reference
price that may be established by the Exchange from time to time; or23

Trading Regulations

(2)it is necessary to do so in order to maintain a fair and orderly market or
to ensure the stable operation of the Exchange System as defined in
Article 15 of the Trading Member Regulations, or the Exchange deems
it necessary to do so for any other reason.

11.6
When a Trading Member submits the bids and/or offers, it is not required toindicate whether the market derivatives contracts, which it desires to execute, is a newsale contract, a new purchase contract or offsetting transactions.
11.7
In addition to the provisions of these Regulations, any matters necessary to
stipulate in connection with bids and offers for the market derivatives contracts under theauction method shall be separately prescribed by the Exchange.

Article 12.

Trading Unit

The trading unit for the respective financial indices, etc. shall be as follows.
(1)

Three-month Euroyen futures:
Notional principal amount of ¥100,000,000(2)

Two-year ¥ Swapnote™, Five-year ¥ Swapnote™, Seven-year¥ Swapnote™ and Ten-year ¥ Swapnote™:
Notional principal amount of ¥10,000,000(3)

Three-month TONA futures:
The value for 0.01 of bid and offer price fluctuation shall be ¥2,500.

Article 13.

Posting of Contract Price

If a market derivatives contract has been executed (except for the contracts
executed in accordance with Article 19 hereof), the Exchange shall post the contract
24

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price thereof in the Exchange Market.

Article 14.

Suspension of Market Derivatives Transactions

The Exchange may suspend all or a part of market derivatives transactions withrespect to all or some specific Trading Members in accordance with the conditions
separately prescribed by the Exchange if:(1)

the Exchange finds an actual or threatened abnormal condition in any
market derivatives transactions, or the Exchange deems it inappropriate
to allow the market derivatives transactions to continue in light ofmanagement of the Exchange Market; or(2)

the Exchange determines it difficult to allow any market derivatives
transactions to continue due to failure in the operation of the Exchange
System as defined in Article 15 of the Trading Member Regulations, ordue to any other reason for which the Exchange so determines.

Article 14-2. Invalidation of Market Derivatives Contracts
14-2.1 In the event of failure in the operation of the Exchange System, if a market
derivatives contract constituting a violation of any of the Exchange’s regulations or otherdecisions in relation to the regularity of the market is executed, the Exchange may
invalidate such market derivatives contract and take measures incidental to suchinvalidation.
14-2.2 In the event of execution of a market derivatives contract based on an order ofError Trade, the Exchange may invalidate such market derivatives contract and takemeasures incidental to such invalidation whether or not requested by the Trading
Member, where the Exchange deems it necessary to take such measures for maintaining
the orderly market, the absence of which would otherwise be likely to cause a
disturbance to the Exchange Market due to causes, including but not limited to, asignificant gap between the contract price and the prevailing market price.
14-2.3 If a market derivatives contract is invalidated by the Exchange in accordance25

Trading Regulations

with Articled 14-2.1 or 14-2.2 hereof, such market derivatives contract shall be deemed
not to be executed from the beginning.
14-2.4 If the Trading Member requests invalidation of the market derivatives contract,
it shall make such request within ten (10) minutes from the execution of such contract inprinciple and the Exchange may determine whether or not to invalidate such market
derivatives contract within approximately sixty (60) minutes from receipt of the request.
14-2.5 If the Exchange invalidates the market derivatives contract in accordance with
Article 14-2.2 hereof, the Trading Member whose market derivatives contract isinvalidated shall pay a fee to the Exchange as separately prescribed with respect to theinvalidation of the market derivatives contract.
14-2.6 Even if the Trading Member suffers any damage due to invalidation of themarket derivatives contract by the Exchange in accordance with Article 14-2.2 hereof, it
may not claim compensation for the damage against the Trading Member who executes
the order of Error Trade, unless willful misconduct or gross negligence of such Trading
Member is found at the execution of the order of Error Trade.

Article 14-2-2. Publication of Order of Error Trade
The Exchange shall publish the matters separately prescribed when requested bya Trading Member in accordance with Article 14-2.4 hereof or, without such request,
when it starts consideration of invalidation in accordance with Article 14-2.2 hereof,
unless the Exchange determines at its sole discretion that it is not necessary to publish
such matters.

Article 14-3. Publication, etc. of Decision of Invalidation
14-3.1 When the Exchange decides an invalidation of a market derivatives contract inaccordance with Article 14-2 hereof, the Exchange shall publish the matters separately
prescribed.
14-3.2 With respect to each type of market derivatives contracts subject to theinvalidation initiated by the Exchange, the Exchange shall communicate the matters to be26

Trading Regulations

separately prescribed for each such type to all the Trading Members who have submitted
any bid or offer for the invalidated market derivatives contracts.
14-3.3 When the Exchange decides not to invalidate the market derivatives contract
after the publication in accordance with Article 14-2-2 hereof, it shall publish the mattersseparately prescribed.

Article 14-4. Invalidation of Market Derivatives Contracts in Case of Loss ofRecord of Contracts due to Natural Disaster, etc.
14-4.1 In the event that record of contracts maintained on the system of the Exchange
has been lost due to natural disaster or any other unavoidable reason and it is determinedthat restoration of such record is difficult, the Exchange may invalidate the market
derivatives contracts whose record has been so lost.
14-4.2 In the event that a market derivatives contract is invalidated by the Exchange inaccordance with Article 14-4.1 hereof, such market derivatives contract shall be deemed
not to be executed from the beginning.
14-4.3 Article 14-3.1 hereof shall apply mutatis mutandis to invalidation of market
derivatives contracts under this Article 14-4.

Article 15.

Notice, etc. of Contents Inputted for Bids and Offers

15.1
When any matter relating to a bid or offer has been inputted in accordance with
Article 11.2 hereof, the Exchange shall immediately communicate the contents inputted
into the Trading System (hereinafter called “inputted contents”) to the Trading Member
who has submitted such bid or offer.
15.2
The Trading Member shall promptly confirm the inputted contents
communicated under Article 15.1 above.
15.3
Any correction to the inputted contents communicated under Article 15.1 above
shall be made in accordance with the conditions separately prescribed by the Exchange.

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Article 16.

Matching of Bid and Offer

When a bid and an offer satisfy the conditions for execution of a market
derivatives contract set forth in Article 10 hereof, the bid and the offer shall be matchedby the Trading System in accordance with the price and time priority set forth herein.

Article 17.

Securities, etc. Clearing-Brokering Contracts

When a bid or an offer submitted by a Non-Clearing Member satisfies theconditions for execution of a market derivatives contract set forth in Article 10, 19 or
20-7 hereof, such Non-Clearing Member’s market derivatives contract (hereinafter called
the “Securities, etc. Clearing-Brokering Contracts”) shall be executed in the name of the
Non-Clearing Member’s Designated Clearing Member in accordance with Article 25.3 of
the Trading Member Regulations.

Article 18.

Notice of Execution of Market Derivatives Contract

18.1
Upon execution of a market derivatives contract, the Exchange shallimmediately communicate the details thereof to the Trading Member who has submitted
the bid or offer for such contract.
18.2
The Trading Member shall promptly confirm the details of the market
derivatives contract communicated under Article 18.1 above.
18.3
With respect to a Securities, etc. Clearing-Brokering Contract which is enteredinto in relation to an Interest Rate Futures contract, the Exchange shall, on behalf of the
Non-Clearing Member who has submitted a bid or an offer, notify its Designated
Clearing Member of the details of the relevant Securities, etc. Clearing-Brokering
Contract that may be necessary to make clearing thereof, in addition to the notice set
forth in Article 18.1 above, after the close of the day session of the trading day on whichsuch Securities, etc. Clearing-Brokering Contract is executed.

Article 19.

Market Derivatives Transaction for Error Trade Correction
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If a Trading Member has not been able to execute a Customer’s order on the
Exchange Market in accordance with the Customer's instructions due to an Error Trade,etc. caused by any truly unavoidable reason, the Trading Member may, with the
Exchange’s prior approval and in accordance with the conditions separately prescribedby the Exchange, execute a sale contract or a purchase contract for the relevant financial
indices, etc. so approved, which contract will be executed at the contract price that will
be deemed appropriate by the Exchange, not based on the auction method nor theMarket-Making Method as specified in the FX Special Provisions and the Equity Index
Special Provisions, but with the said Trading Member itself acting as the counterparty,
and at its own bid or offer.

Article 20.

(Deleted)

Section 2.

Strategy Trade

Article 20-2. Strategy Trade20-2.1 A “strategy trade” is a trade whereby the multiple sale contracts and/or purchase
contracts for a single Customer’s account or for the Trading Member’s house account are
all simultaneously executed, each type of combination of the multiple contracts being
separately specified by the Exchange.
20-2.2 A Trading Member who intends to make a strategy trade set forth in Article
20-2.1 above shall submit the bids and/or offers at the prices or figures that will becalculated in accordance with the pricing formulas separately prescribed by the
Exchange for the respective strategy trades (hereinafter called the “strategy price(s)”).
20-2.3 When a strategy trade is executed, the Exchange shall determine the contract
price of each of the sale contracts and/or purchase contracts included in the executed
strategy trade, based on the strategy contract prices, and immediately communicate suchcontract prices to the Trading Member who has submitted the bids and/or offers for thesaid strategy trade.
29

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20-2.4 In addition to the provisions of these Regulations, any matters necessary to
stipulate in connection with strategy trades shall be separately prescribed by the
Exchange.

Article 20-3. Substitution of Words for Interpretation of Strategy Trade20-3.1 For the purpose of application of the provisions of Articles 9-2, 10, 11, 13, 16,
64, 66 and 67 hereof to strategy trades, the terms “offer” and “bid” referred to in Articles
9-2, 10.2, 16 and 66.1 hereof shall be replaced with “strategy offer” and “strategy bid”
respectively, the term “price” referred to in Articles 9-2, 10.2, 11.5(1), 66.1 and 67 hereof
shall be replaced with “strategy price”, the terms “sale contract” and “purchase contract”
referred to in Article 66 hereof shall be replaced with “strategy sale” and “strategy
purchase” respectively, the terms “market derivatives contract” or “market derivatives
transaction” referred to in Articles 10.2, 13 and 16 hereof shall be replaced with “strategy
trade”, the terms “contract price” or “traded price” referred to in Articles 10.2 and 13
hereof shall be replaced with “strategy contract price”, and the terms “best offer” and“best bid” referred to in Article 10.2 hereof shall be replaced with “best strategy offer”
and “best strategy bid” respectively.
20-3.2 In the case of Article 20-3.1 above, the terms set forth below shall have themeanings ascribed to them hereinbelow.
(1)

A “strategy offer” means an offer submitted by a party of the lower
limit of the strategy price at which the party desires to execute a salestrategy trade as a seller.

(2)

A “strategy bid” means a bid submitted by a party of the upper limit of
the strategy price at which the party desires to execute a purchasestrategy trade as a purchaser.

(3)

A “best strategy offer” means the strategy offer at the lowest strategy
price on an individual auction basis.

(4)

A “best strategy bid” means the strategy bid at the highest strategy
price on an individual auction basis.
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Section 3. Block Trade

Article 20-4. Block Trade20-4.1 A “block trade” is a trade whereby the corresponding offer and bid for a specificcontract month will be simultaneously submitted to the Exchange, at the same price, inthe trading volume not less than the volume designated by the Exchange and not basedon the auction method, and then the sale contract and the purchase contract will be
executed at the price so submitted.
20-4.2 A Trading Member may, according to its trading membership, execute a blocktrade in accordance with the provisions of this Section 3 for the following market
derivatives contracts.
(1)

Three-month Euroyen futures(2)

Two-year ¥ Swapnote™

(3)

Five-year ¥ Swapnote™

(4)

Seven-year ¥ Swapnote™

(5)

Ten-year ¥ Swapnote™

(6)

Three-month TONA futures

Article 20-5. Method of Block Trade20-5.1 A Trading Member who wishes to make a block trade shall make an application
to the Exchange and obtain its approval; provided, however, that the Exchange may fromtime to time designate the contract months for which the Trading Members will not beallowed to make a block trade.
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20-5.2 In the application set forth in Article 20-5.1 above, the bid and the offer for theblock trade shall be simultaneously submitted at the same price in accordance with theconditions separately prescribed by the Exchange.
20-5.3 The application set forth in Article 20-5.1 above shall remain valid until the
Exchange gives a notice of approval or disapproval set forth in Article 20-7 hereof to the
Trading Member who has made the said application (hereinafter called the “block tradeapplicant”).

Article 20-6. Time for Application for Block Trade
20-6.1 The bids and offers for block trade may be submitted during any of the sessions
or periods set forth in Articles 5.1, 5.2 and 5.4 hereof, excluding the last 15 minutes ofeach such session or period, and in any event excluding the period from 11:30 a.m. to
0:30 p.m.
20-6.2 The Exchange may temporarily change the time for application for block trade
set forth in Article 20-6.1 above when it deems necessary to do so, in which event the
Exchange shall give an advance notice to that effect to the Trading Members (excluding
FX Daily Futures Trading Members and Equity Index Daily Futures Trading Members,etc.).

Article 20-7. Execution of Market Derivatives Contract by Block Trade20-7.1 The market derivatives contract intended to be executed by a block trade shallbe deemed executed at the price of the bid and offer submitted by the block tradeapplicant when the Exchange has approved the execution of the market derivatives
contract between the bid and offer submitted at the application for the intended blocktrade.
20-7.2 Notwithstanding the provisions of Article 20-7.1 above, if a block tradeapplicant designates any other Trading Member after obtaining its approval (hereinafter
called the “block trade counterparty”) and makes an application set forth in Article
20-5.2 hereof in order to execute the market derivatives contract with such block trade
32

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counterparty, such market derivatives contract shall be deemed to have been executed as
between the block trade applicant and the same block trade counterparty, retroactively asof the time of the Exchange’s approval, at the price quoted by each of them, and on
condition that the block trade counterparty has given a notice of its approval for the
aforesaid application following the approval by the Exchange.
20-7.3 With respect to the provisions of Article 20-7.2 above, if the block trade
counterparty has failed to give a notice of its approval without delay or given a notice ofits disapproval, the designation of the block trade counterparty by the block tradeapplicant shall be deemed not to exist and the provisions of Article 20-7.1 above shallapply.

Article 20-8. Publication of Contract Price for Block Trade
When a market derivatives contract has been executed by a block trade, theExchange shall publish the contract price therefor in accordance with the proceduresprescribed by the Exchange.

Article 20-9. Suspension of Block Trade
The Exchange may suspend block trade with respect to all or some specificTrading Members in accordance with the conditions separately prescribed by the
Exchange if:(1)

the Exchange finds an actual or threatened abnormal condition in any
block trade, or the Exchange deems it inappropriate to allow any block
trading to continue in light of management of the Exchange Market;(2)

the Exchange determines it difficult to allow any block trading tocontinue due to failure in the operation of the Exchange System or due
to any other reason for which the Exchange so determines; or(3)

the matching for market derivatives contracts is suspended inaccordance with Article 7 hereof.

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Trading Regulations

CHAPTER V.
GIVE-UP

Article 20-10. Give-up
20-10.1 With respect to a market derivatives contract which has been executed at thebid or offer by a Trading Member or an L-T Link Position which has been caused to arise
by a Trading Member for its own account, “give-up” means a function to allow theTrading Member to cause any other Trading Member to clear such contract or L-T Link
Position in accordance with Article 25 of the Clearing Regulations.
20-10.2 If a market derivatives contract is executed on the Exchange Market at the bid
or offer by an Executing Member in its name (or the name of its Designated Clearing
Member if the Executing Member is a Non-Clearing Member; this interpretation shallapply to the term “Executing Member” hereafter in this Article 20-10, except forreference to “for the account of the Executing Member” and equivalent expressions) for
the Executing Member’s own account, with the Exchange acting as the counterparty inaccordance with the Clearing Regulations, or if an L-T Link Position arises in an
Executing Member’s name and for its own account on the Exchange Market, suchmarket derivatives contract or L-T Link Position shall be discharged on condition that
the Exchange shall have received a take-up notification set forth in Article 20-14.1(1)hereof from a Carrying Member, and concurrently with such discharge, a new market
derivatives contract or L-T Link Position of the same terms and conditions as those of
the discharged market derivatives contract or L-T Link Position shall be created as
between the Exchange and the Carrying Member (or its Designated Clearing Member if
the Carrying Member is a Non-Clearing Member; this interpretation shall similarly apply
to the term “Carrying Member” hereafter in this Article 20-10, except for reference to“for the account of the Carrying Member” and equivalent expressions) in the Carrying
Member’s name and for its own account.

Article 20-11. Give-up Registration
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Trading Regulations

20-11.1 When an Executing Member and a Carrying Member intend to execute amarket derivatives contract for give-up or to cause an L-T Link Position to arise forgive-up, those Trading Members shall register such give-up arrangement with the
Exchange beforehand through the Member’s terminal devices possessed by them.
20-11.2 A Non-Clearing Member who intends to make the registration set forth in
Article 20-11.1 above shall obtain its Designated Clearing Member’s consent.
20-11.3 Notwithstanding the provisions of Article 20-11.1 above, in the case of an
Executing Member or Carrying Member who is a Japanese Yen Interest Rate Remote
Trading Member, its Designated Clearing Member may obtain the registration set forthin Article 20-11.1 above on its behalf.

Article 20-12. Object of Give-up
Give-up on the Exchange shall be allowed to be made for the market derivatives
contracts with respect to the financial indices, etc. set forth in each Item of Article 3
hereof, the market derivatives contracts in which the financial options specified in theSpecial Provisions for Options are traded, and the L-T Link Positions.

Article 20-13. Give-up Notification
20-13.1 If an Executing Member has executed a market derivatives contract forgive-up at its bid or offer or caused an L-T Link Position to arise for give-up, such
Executing Member shall promptly specify the contents thereof and a Carrying Member
therefor and provide the Exchange with a notice of such contents and Carrying Member(hereinafter called “give-up notification”); provided, however, where the Executing
Member is a Japanese Yen Interest Rate Remote Trading Member, it may cause its
Designated Clearing Member to provide the Exchange with the give-up notification on
its behalf.
20-13.2 If the Exchange has received a give-up notification, the Exchange shallcommunicate the contents thereof to the Carrying Member designated by the concerned
Executing Member.
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20-13.3 A Trading Member shall not provide the Exchange with a give-up notification
with respect to any market derivatives contract or L-T Link Position that has beencreated or has arisen by give-up.

Article 20-14. Take-up Notification, etc.
20-14.1

If a Carrying Member has received a notice given under Article 20-13.2

hereof, such Carrying Member shall promptly notify the Exchange in either of thefollowing manners, according to the contents of the notice so received; provided,
however, where the Carrying Member is a Japanese Yen Interest Rate Remote Trading
Member, it may cause its Designated Clearing Member to make such notification to the
Exchange on its behalf.
(1)

If the Carrying Member accepts to undertake clearing of the market
derivatives contracts or L-T Link Positions intended in the notice, thenotification of acceptance (hereinafter called “take-up notification”)
shall be provided.

(2)

If the Carrying Member declines to undertake clearing of the market
derivatives contracts or L-T Link Positions intended in the notice, thenotification of declination shall be provided.

20-14.2 If the Exchange receives a take-up notification given under Article 20-14.1
above, the Exchange shall communicate the contents thereof to the Executing Member
who has made such give-up notification.

Article 20-15. Treatment of Market Derivatives Transaction for Give-up
20-15.1 In Article 18.3, Chapters VII through XI and Chapter XIII hereof (except for
Articles 76 and 79 hereof), the market derivatives contract or the L-T Link Position
created or arisen by give-up shall be deemed as the market derivatives contract or the
L-T Link Position executed or arising at the bid or offer by the concerned Trading
Member and in its name (or its Designated Clearing Member’s name if the Trading
Member is a Non-Clearing Member; in which case, the words “market derivatives
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contract” and the “L-T Link Position” appearing immediately before this parenthesizedphrase shall be read as “Securities, etc. Clearing-Brokering Contract” and“Clearing-undertaken Position” respectively) on the trading day on which the Executing
Member has executed the market derivatives contract or caused the L-T Link Position toarise for give-up.
20-15.2 For the purpose of application of the provisions of Article 76 hereof to themarket derivatives contracts and the L-T Link Positions for give-up, the phrase “themarket derivatives contracts or the L-T Link Positions executed or arising” shall be
replaced with “the market derivatives contracts or the L-T Link Positions discharged or
those created or arisen by give-up”.

Article 20-16. Particulars for Give-up
In addition to the provisions of these Regulations, any matters necessary to
stipulate in connection with a give-up notification period and the procedure for thecorrection to the contents thereof shall be separately prescribed by the Exchange.

CHAPTER VI.
ARISING, etc. OF L-T LINK POSITION

Article 21.

Arising of L-T Link Position

21.1
If the Exchange has received from a Linked Overseas Clearing House astatement of unsettled linked market derivatives contracts executed on an overseas
financial instruments market operated by a Linked Overseas Exchange (hereinafter
called “overseas position(s)”), the Exchange shall review the contents thereof to confirm
the items separately designated by the Exchange and, upon completion of theconfirmation, promptly dispatch a notice of confirmation to the said Linked Overseas
Clearing House.

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21.2
If the Exchange has dispatched a notice set forth in Article 21.1 above withrespect to the overseas position covered by a Member Link Agreement set forth in
Article 2(9)(a) hereof, an L-T Link Position of the same terms and conditions as those of
the said overseas position shall arise between the Exchange and the Clearing Member
who is a party to the said Member Link Agreement and is designated by the Linked
Overseas Clearing House, which is a party to the same Member Link Agreement, in eachoverseas position statement dispatched by it.
21.3

If the Exchange has dispatched a notice set forth in Article 21.1 above withrespect to an overseas position covered by the Member Link Agreement set forth in
Article 2(9)(b) hereof, an L-T Link Position of the same terms and conditions as those of
the said overseas position (hereinafter called the “Clearing-undertaken Position”) shallarise between the Exchange and the Designated Clearing Member of the Non-Clearing
Member who is a party to the said Member Link Agreement and is designated by the
Linked Overseas Clearing House, which is a party to the same Member Link Agreement,in each overseas position statement dispatched by it.

Article 22.

Method of Indication of Bids and Offers, Minimum Price Fluctuation
and Trading Unit concerning Overseas Positions

The method of indicating bids and offers, the minimum price fluctuation and the
trading unit for overseas positions shall be as set forth below.
Three-month Euroyen futures: to the third decimal place (indicated by an integral
multiple of 5/1000), 0.005, notional principal amount of ¥100,000,000

Article 23.

Financial Index for L-T Link Positions

The financial index for L-T Link Positions on the Exchange shall be the index
set forth in Article 3(1) hereof.

Article 24.

Contract Months of L-T Link Positions

With respect to the contract months of L-T Link Positions, the provisions for38

Trading Regulations

Three-month Euroyen futures set forth in Article 4 hereof shall apply mutatis mutandis tothe classification, the trading period, the number of listing and the last arising day andthe first arising day. In this connection, the “last trading day” and the “first tradingday” referred to in Article 4 hereof shall be replaced with the “last arising day” and the“first arising day” respectively.

Article 25.

Dispatch of Notice by Exchange on Exchange Holiday

The Exchange may dispatch a notice set forth in Article 21.1 hereof on any
Exchange Holiday.

Article 26.

Deadline for Dispatch of Notice by Exchange

26.1
The Exchange shall dispatch a notice set forth in Article 21.1 hereof by the time
separately designated by the Exchange.
26.2
The Exchange may dispatch a notice set forth in Article 21.1 hereof after thetime set forth in Article 26.1 above if the Exchange deems it necessary to do so.

Article 27.

Non-dispatch of Notice by Exchange

Upon occurrence of any of the following events, the Exchange shall not be
required to dispatch a notice set forth in Article 21.1 hereof, pursuant to the conditions
separately prescribed by the Exchange(1)Natural disaster, fire, power failure, communication deficiency or
disturbance, accident in computer or other systems installed by any
Linked Overseas Organization, accident in interbank settlement
systems, riot or civil commotion, drastic change in economic
conditions, or any other event affecting overseas financial instruments
markets operated by the Linked Overseas Exchange(2)

Abnormal speculation or other adverse event in overseas financial
instruments markets operated by the Linked Overseas Exchange that
39

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the Exchange determines, with the arising of any L-T Link Position, islikely to cause disturbances in market derivatives transactions on the
Exchange Market(3)

A problem in the operation of computer or other systems installed by
the Exchange or any Linked Overseas Organization that the Exchange
determines may disable or substantially impede dispatch of notices by
the Exchange(4)

A situation where the Exchange determines that settlements of market
derivatives contracts or L-T Link Positions may be disabled or
substantially impeded(5)

Any other circumstances where the Exchange determines it necessary
to refrain from dispatching the notice

Article 28.

Notification, etc. of Details of L-T Link Position

28.1
If the Exchange has dispatched a notice set forth in Article 21.1 hereof, theExchange shall communicate the details of the L-T Link Position contained therein(hereinafter called “L-T Link Position details”) to the Trading Member who has causedsuch L-T Link Position to arise for its own account.
28.2
If the Exchange has dispatched a notice set forth in Article 21.1 hereof, theExchange shall communicate non-arising of L-T Link Position to the Trading Member
who is a party to the Member Link Agreement but for whose account the intended L-T
Link Position has not arisen.
28.3
If a Trading Member receives a notice of the L-T Link Position details inaccordance with Article 28.1 above or the notice of non-arising of L-T Link Position set
forth in Article 28.2 above, the Trading Member shall promptly review and confirm thecontents of such notice.
28.4
If a Trading Member receiving the L-T Link Position details in accordance with
Article 28.1 above or the notice of non-arising of L-T Link Position set forth in Article
28.2 above has any doubt about such notice, the Trading Member shall notify the40

Trading Regulations

Exchange to that effect in the manner separately prescribed by the Exchange.
28.5
The Exchange shall examine the Trading Member's notice set forth in Article
28.4 above and communicate the examination results to the same Trading Member in themanner prescribed by the Exchange.
28.6
If a Trading Member is requested by the Exchange to examine the L-T Link
Position details communicated to it in accordance with Article 28.1 hereof or the noticeof non-arising of L-T Link Position given to it as set forth in Article 28.2 hereof, such
Trading Member shall examine the same and promptly report the result thereof to the
Exchange in the manner prescribed by the Exchange.
28.7
In addition to those set forth in Article 28.1 hereof, the Exchange shall notify the
Designated Clearing Member of the L-T Link Position details to the extent necessary forthe settlement of the Clearing-undertaken Position by such Designated Clearing Member.
The foregoing details shall be included in the notice of the details of the Securities, etc.
Clearing-Brokering Contracts necessary for its clearing as set forth in Article 18.3 hereof
and this notice shall be dispatched by the Exchange after the day session of the trading
day on which the notice set forth in Article 21.1 hereof has been dispatched, on behalf of
the Non-Clearing Member who has caused the relevant L-T Link Position to arise for its
own account.

Article 28-2. Whether for a Customer Account or for a House Account for L-T
Link Position
28-2.1 An Interest Rate Futures Clearing Member shall notify the Exchange of whether
for a customer account or for a house account for the L-T Link Position (excluding a
Clearing-undertaken Position) which it has caused to arise in its own name.
28-2.2 A Non-Clearing Member shall notify the Exchange of whether for a customer
account or for a house account for the Clearing-undertaken Position which the
Non-Clearing Member has caused to arise in its Designated Clearing Member’s name.
28-2.3 The deadline for notifications set forth in Articles 28-2.1 and 28-2.2 above andthe correction to the contents thereof shall be in line with the conditions separately
prescribed by the Exchange.
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CHAPTER VII.
OFFSETTING TRANSACTIONSArticle 29.

Offsetting Transactions

Handling of offsetting transactions for market derivatives contracts shall begoverned by Articles 42 through 44 of the Clearing Regulations.

Article 30.and 31(Deleted)

CHAPTER VIII.
MARK-TO-MARKET

Article 32.

Daily Settlement Price, etc.

Settlement prices and payment or receipt of the difference between a contract
price and a daily settlement price and other related matters shall be governed by Articles
45 through 50 of the Clearing Regulations.

Articles 33 through 37 (Deleted)42

Trading Regulations

CHAPTER IX.
(Deleted)

Articles 37-2 through 37-6

(Deleted)

CHAPTER X.
MARGIN

Article 38.

Margins, etc.

Matters relating to margins and handling of margins in the case of disciplinary
measures, etc., such as suspension of market derivatives transactions, shall be prescribedby the Margin Regulations, the FX Margin Regulations, the Equity Index Margin
Regulations or the FX Clearing Margin Regulations.

Articles 38-2 through 48-4

(Deleted)

CHAPTER XI.
FINAL SETTLEMENT

Article 49.

Final Settlement

Final settlements for market derivatives contracts shall be governed by Chapter
XI of the Clearing Regulations.
43

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Articles 50 through 63 (Deleted)

CHAPTER XII.
RESTRICTIONS ON MARKET DERIVATIVES TRANSACTIONSArticle 64.

Order Limit

64.1
The Exchange may limit the bid or offer volume by each type of market
derivatives contract whenever the Exchange deems it necessary to do so in order tomaintain the regularity of the Exchange Market and protect the public or customers
interests.
64.2
The Exchange will reject to receive any bid or offer whose volume is in excessof the limit prescribed by the Exchange in accordance with Article 64.1 above.

Article 65.

Position Limit

The Exchange may limit the volume of a Trading Member’s position wheneverthe Exchange deems it necessary to do so in order to maintain the regularity of the
Exchange Market and protect the public or customers interests.

Article 66.

Precedence of Customer's Order

66.1
A Trading Member who has received a Customer's order for a sale or purchase
contract shall not execute or cause to be executed a sale contract at or above the pricespecified in such order or a purchase contract at or below the price specified in suchorder, for the account of any party with whom the Trading Member has a direct or
44

Trading Regulations

indirect interest, before executing such Customer’s order.
66.2
A Trading Member shall give precedence to a Customer's order for a sale orpurchase contract over a sale or purchase contract for its house account, if the conditionsof the Customer's order are the same as those for the Trading Member’s house account.

Article 67.

Prohibition of Manipulation

A Trading Member shall not cause to unduly rise the market prices on the
Exchange Market by placing bids sequentially at increasing prices, or cause to unduly
drop the market prices on the Exchange Market by placing offers sequentially atdecreasing prices, or do any other act or thing whatsoever with an intention to cause
misunderstanding with respect to market derivatives transactions, manipulate the market
to appear fictiously active, cause an undue influence on the Exchange Market, or fake themarket prices not reflecting the actual demand or supply, or for any other similar
purposes.

Article 68.

(Deleted)

CHAPTER XIII.
MISCELLANEOUS PROVISIONS

Article 69.

Management Method of Membership Deposits

The Exchange shall invest and manage the membership deposits in the manners
set forth below:(1)

Holding of Japanese Government bonds(2)

Holding of Japanese municipal bonds
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(3)Deposit with financial institutions(4)

Money trust entrusted with financial institutions conducting trust
business (limited to those in respect of which the agreement forcompensation of principals have been executed)

Article 70.
70.1

Standard TimeTime indicated in these Regulations is a Japan time.

70.2
A day or month indicated in these Regulations is a day or month per calendar ofJapan.

Article 71.

(Deleted)

Article 72.

Identification of Parties to Market Derivatives Contract

72.1
Any party involved in a market derivatives contract or an L-T Link Position
shall be identified by its code number.
72.2

The Exchange shall assign a code number to each Trading Member.

Article 73.

Communication or Transportation Facilities

When a Trading Member intends to install, relocate or remove communication
or transportation facilities used for communications or transportation between its officeand the Exchange’s office, the Trading Member shall obtain the Exchange’s written
approval therefor.

Article 74.

Market Reports

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If it becomes necessary to make continuous public announcement or press
release for reporting on the market conditions or the condition of arising of L-T Link
Positions on the Exchange Market, such reporting shall be made by the Exchange, andno Trading Member shall be allowed to make such reporting or do any similar act orthing.

Article 75.

(Deleted)

Article 76.

Reporting on Market Derivatives Contracts or L-T Link Positions

Upon the Exchange’s request, a Trading Member shall submit to the Exchange areport on the market derivatives contracts or the L-T Link Positions executed or caused
to arise on the Exchange Market, in a form and manner separately prescribed by the
Exchange.

Article 77.

Clearing Commission

77.1
A clearing commission payable by a Non-Clearing Member to its Designated
Clearing Member for a Securities, etc. Clearing-Brokering Contract orClearing-undertaken Position executed or caused to arise by such Designated Clearing
Member shall be paid in the manner determined between the Non-Clearing Member andthe Designated Clearing Member in advance.
77.2

The amount of the clearing commission referred to in Article 77.1 above shallbe determined between the Non-Clearing Member and its Designated Clearing Member
in advance.

Article 78.

Collection of Communication and Other Expenses

If a Designated Clearing Member has incurred any communication, mail orother expenses in connection with a Securities, etc. Clearing-Brokering Contract or a
Clearing-undertaken Position for a Non-Clearing Member, the Designated Clearing
Member may collect such expenses from the Non-Clearing Member, in addition to the47

Trading Regulations

payments of clearing commissions.

Article 79.

Dispatch of Notice on Market Derivatives Contract or L-T Link
Position

79.1
A Trading Member shall provide a monthly statement to a Customer holding
any unsettled market derivatives contract or any unsettled L-T Link Position for its
account to report on the state of such unsettled market derivatives contract or L-T Link
Position; provided, however, that the foregoing shall not apply if a Customer is afinancial instruments firm, exchange licensed firm or registered financial institutions or
if a report on outstanding balance of transactions is not required to be delivered to a
Customer pursuant to Article 45 of the Act or Article 111, Item 1 of the Cabinet Office
Order on Financial Instruments Business, etc.
79.2
The following Items shall be described in a statement set forth in Article 79.1
above.
(1)

Type of the market derivatives contract(2)

Contract month(3)

Whether the market derivatives contract is a sale contract or a purchase
contract, or whether the L-T Link Position is an L-T Link Short
Position or an L-T Link Long Position(4)

Trading volume, Given-up Volume, or Accepted Volume(5)

Contract price, or Acceptance Figure(6)

The date on which the sale or purchase contract is executed, or the dateon which the L-T Link Short Position or the L-T Link Long Position
arises

79.3
Instead of dispatching a monthly statement set forth in Article 79.1 above, aTrading Member may notify a Customer of the matters that would otherwise be
described in the said statement, with its approval, by means of a method utilizing an
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electronic data processing and network organization or a method utilizing any otherinformation and telecommunication technology to be separately prescribed by the
Exchange. In this case, the Trading Member shall be deemed to have provided amonthly statement referred to in the foregoing sentence.
79.4
If an average of the unit prices of the transactions of the same issue on the same
day may be stated on a report on outstanding balance of transactions pursuant to Article
108, Paragraph 7 of the Cabinet Office Order on Financial Instruments Business, etc.,
such average may be used as a Contract Price set forth in Article 79.2 (5) above.

Article 79-2. Recordkeeping for Market Derivatives Transactions based on
Customer’s OrderA Trading Member shall keep the records separately prescribed by the Exchangewith respect to the Interest Rate Futures transactions based on a Customer’s order.

Article 80.

Entrustment of Exchange’s Administrative Work

80.1
The Exchange may entrust any of the administrative works carried out by it inconnection with market derivatives contracts and L-T Link Positions as designated by
the Exchange, to a person designated by the Exchange.
80.2
In addition to the provisions of these Regulations, Trading Members shallcomply with the regulations prescribed, with the Exchange’s approval, by the person
designated by the Exchange to act as agent for the administrative works set forth in
Article 80.1 above.

Article 81.

Method of Notice, etc. of Total Traded Volume, Total Contract Value,
etc.

81.1
The Exchange shall provide each Trading Member with the daily information
about the items set forth in the Appendix attached hereto as prescribed under Article 130of the Financial Instruments and Exchange Act (Kinyu-shouhin-torihiki-ho) (Act No. 25
of 1948), by means of notification and announcement via electronic recording media on
49

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every business day; provided, however, such notification and announcement may bemade in writing rather than electronic recording media if the Exchange deems it difficult
to use the latter due to failure thereof or under similar circumstances.
81.2
Instead of the notification and announcement set forth in Article 81.1 above, theExchange may communicate the matters that would otherwise be described in the said
notification and announcement by means of a method utilizing an electronic dataprocessing and network organization or a method utilizing any other information andtelecommunication technology to be separately prescribed by the Exchange. In thiscase, the Exchange shall be deemed to have provided the notification and announcement
referred to in the foregoing sentence.

Article 81-2. Reporting to Prime Minister
The Exchange shall report on daily market and other information about the
Exchange Market to the Prime Minister as required by Article 131 of the Financial
Instruments and Exchange Act by electronic recording media on every business day;provided, however, that such report may be made in writing rather than electronic
recording media if the Exchange deems it difficult to use the latter due to failure thereofor under similar circumstances.

Article 82.

Official Closing Price

82.1
The Exchange shall determine and inform each Trading Member of the Official
Closing Price for each contract month after the close of the evening session (or the samebusiness day’s day session, in the absence of such evening session) of each business day.
82.2
The Official Closing Price set forth in Article 82.1 above shall be in the amountequal to the volume-weighted average of the contract prices and traded volumes(excluding the contract prices and traded volumes for the market derivatives contracts
executed by strategy trade; this exclusion shall similarly apply to the term “contract
price” referred to in Article 82.3 below) for the market derivatives contracts executed by
the auction method during a specific time period separately designated by the Exchange(hereinafter called the “Official Closing Price Indicative Period”), which period shall be
before the close of the concerned business day’s evening session (or the same business50

Trading Regulations

day’s day session, in the absence of such evening session); provided, however, that, if the
Exchange deems the Official Closing Price calculated as aforesaid to be inappropriate,
the Exchange shall determine another figure deemed appropriate by the Exchange as the
Official Closing Price.
82.3
If no contract is executed during the Official Closing Price Indicative Period forany contract month, the Official Closing Price therefor shall be separately determined by
the Exchange.
82.4
Notwithstanding the provisions of Articles 82.2 and 82.3 above, the Official
Closing Price on the business day on which the last trading day’s day session falls shallbe in the amount equal to the final settlement figure set forth in Article 52 of the Clearing
Regulations.

Article 83.

Traders Effecting Market Derivatives Transactions via Member's
Terminal Devices

A Trading Member's market derivatives transactions through the Exchange
System shall be effected by the Trading Member’s Trading Member Representative as
defined in Article 8 of the Trading Member Regulations, or its officer or staff in chargeof market derivatives transactions on the Exchange Market, using the Member's terminal
devices.

Article 84.

Disclosure

The Exchange may disclose information about the Exchange Market or Trading
Members to any Linked Overseas Organization if such disclosure is requested by the
Linked Overseas Organization for sound management of linked market derivatives
transactions and is deemed necessary by the Exchange for the protection of the public orcustomers interests, or if such disclosure is required under the Link Agreement.

Article 85.

Regulatory Measures on Market Derivatives Transactions, etc.

In addition to those prescribed by these Regulations, the Exchange may, by51

Trading Regulations

resolution of its board of directors, take any of the regulatory measures prescribed by the
Exchange with respect to market derivatives transactions on the Exchange Market or
acceptance of orders therefor or Acceptance of Brokering Linked Market Derivatives
Transactions, arising of L-T Link Positions or Acceptance of Linked Clearing, insofar as
the Exchange deems it necessary to do so in order to maintain the regularity of the
Exchange Market and to protect the public or customers interests.

Article 86.

Liability for Operation of Exchange Market, etc.

The Exchange shall not be liable for any damage that may be suffered by a
Trading member or a third party due to any of the following events: suspension ofmarket derivatives transactions by the Exchange in accordance with Article 14 hereof,
invalidation of market derivatives contracts by the Exchange in accordance with Article
14-2 or 14-4 hereof, delay in notice from the Exchange as for the contents of trading inaccordance with Article 18.1 hereof, Article 13.1 of the Special Provisions for Options,
Article 25.1 of the FX Special Provisions, Article 28.1 of the Equity Index Special
Provisions or Article 18.1 of the FX Clearing Special Provisions, execution of a market
derivatives contract for error trade correction by a Trading Member in accordance with
Article 19 hereof or Article 14 of the Special Provisions for Options, and any otheraction taken by the Exchange that the Exchange may consider necessary in terms ofoperation of the Exchange Market.

SUPPLEMENTARY PROVISIONS
The amended regulations shall take effect as from December 24, 2015.

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

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

SUPPLEMENTARY PROVISIONS
The amended regulations shall take effect as from February 1, 2018.

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

SUPPLEMENTARY PROVISIONS
1.

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

2.
Notwithstanding Article 4.2(3) and Article 4.4(3)(b), the first trading day for therespective contract months of Three-month TONA futures whose final settlement dates
fall in the period from June 2023 to March 2028 shall be March 20, 2023.

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Appendix
1.

Matters to be Reported or Announced
For Three-month Euroyen futures, Two-year ¥ SwapnoteTM, Five-year¥ SwapnoteTM, Seven-year ¥ SwapnoteTM, Ten-year ¥ SwapnoteTM andThree-month TONA futures (except for those executed in accordance with
Article 19 hereof)
Trading

volume,opening/highest/lowest/closing

prices(last),

daily

settlement price and volume of Unsettled Position
2.

For Three-month Euroyen futures option contracts and Three-month
TONA futures option contracts (except for those executed in accordancewith Article 14 of the Special Provisions for Options)
Trading volume, opening/highest/lowest/closing prices, Daily Settlement
Price, position volume and exercised volume

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