[English Translation]

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

(This is an English translation of the Regulations for Margin and Unsettled Contracts for
FX Daily Futures Transactions, 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 or without courts of law inregard to the meaning of the words, provisions and stipulations of these Regulations shallbe decided in accordance with the Japanese language text. Tokyo Financial ExchangeInc. (“TFX”) assumes no responsibility for accuracy, correctness, or content of this English
text.)

Regulations for Margin and Unsettled Contracts
for FX Daily Futures Transactions

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

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

Article 2.

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

Article 3.

Purpose of FX Margin ............................................................................................. 4

CHAPTER II.

RIGHTS AND DUTIES OF FX DAILY FUTURES TRADING MEMBER IN
REGARD TO FX MARGINS ............................................................................. 4

Section 1. Depositing of FX Exchange Margin ........................................................................... 4
Article 4.

Separate Depositing ................................................................................................. 4

Article 5.

FX Exchange Margin for House Account Positions ................................................ 5

Article 6.

Direct Depositing of FX Exchange Margin ............................................................. 6

Article 7.

Advanced Depositing of FX Exchange Margin by FX Daily Futures Trading
Member ................................................................................................................... 6

Section 2. Claim for Refund of FX Margin ................................................................................. 7
Article 8.

Claim for Refund of FX Margin .............................................................................. 7

Article 8-2 Refund of FX Exchange Margin ......................................................................... 10
Article 9.

Drawing of FX Exchange Margin and Restriction ................................................ 12

Article 10. Disbursement of FX Exchange Margin ................................................................. 13
Article 11. Transfer of FX Variation for Settlement to FX Exchange Margin ........................ 13
Section 3. Treatment of FX Daily Futures Contracts upon Suspension from Transaction or
Other Measures Taken ............................................................................................. 14
Article 12. Suspension of Refund of FX Margin due to Suspension from Transactions or
Other Measures Taken ........................................................................................... 14
Article 13. Treatment of Unsettled Positions based on Orders by Suspended Member’s FX
Daily Futures Customers ....................................................................................... 14
Article 14. Treatment of FX Margin for Transfer of Unsettled Position ................................. 15
Article 15. Treatment of FX Margin after Liquidation ............................................................ 15
Article 16. Other Treatment for Transfer of Unsettled Positions............................................. 16
CHAPTER III.

FX MARGIN FOR FX DAILY FUTURES CUSTOMER ACCOUNTPOSITIONS ...................................................................................................... 16

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Article 17. Purpose of this Chapter ......................................................................................... 16
Article 18. Deposit of FX Exchange Margin ........................................................................... 17
Article 19. Deposit of Ordering Margin .................................................................................. 17
Article 20. FX Daily Futures Customer’s Claim for Refund................................................... 18
Article 21. FX Daily Futures Offeror’s Claim for Refund ...................................................... 18
Article 22. FX Daily Futures Intermediate broker’s Claim for Refund................................... 19
Article 22-2. FX Margin Reference Amount Applied to Individual Customers ....................... 19
Article 22-3. FX Margin Reference Amount Applied to House Account Position or
Non-Individual Customer Position ........................................................................ 20
Article 22-4. FX Margin Reference Amount Applied to FX Market Maker ............................. 22
Article 23. Drawing of FX Exchange Margin and Restriction ................................................ 23
Article 24. Refund of FX Exchange Margin ........................................................................... 23
Article 25. Transfer of FX Variation for Settlement to FX Exchange Margin ........................ 24
CHAPTER

III-II.

TREATMENTOF

FX

MARGIN,

ETC.

UNDER

COMBINED

MANAGEMENT .............................................................................................. 24
Article 25-2. Purpose of this Chapter ........................................................................................ 24
Article 25-3. Combined Management ................................................................................... 25
Article 25-4. Deposit of FX Exchange Margin under Combined Management .................... 25
Article 25-5. Deposit of Ordering Margin under Combined Management............................ 26
Article 25-6.

Drawing of FX Exchange Margin and Restriction under Combined

Management .......................................................................................................... 26
Article 25-7.

Control System for Loss-cut Transactions under Combined Management ...... 27

CHAPTER IV. TREATMENT UPON SUSPENSION FROM TRANSACTIONS OR OTHER
MEASURES TAKEN ....................................................................................... 28
Article 26. Duties upon Suspension from Transactions or Other Measures Taken ................. 28
Article 27. Treatment of FX Daily Futures Customer’s FX Margin for Transfer of Unsettled
Positions ................................................................................................................ 29
Article 28. Treatment of FX Daily Futures Offeror’s FX Margin for Transferred Unsettled
Positions ................................................................................................................ 30
Article 29. Treatment of FX Daily Futures Customer’s FX Margin for Liquidated Positions 30
Article 30. Treatment of FX Daily Futures Offeror’s FX Margin for Liquidated Positions ... 31
CHAPTER IV-II. FX MARGIN FOR POSITION TRANSFER .................................................. 31
Article 30-2. Treatment of FX Daily Futures Customer’s FX Margin for Position Transfer .... 31
Article 30-3. Treatment of FX Daily Futures Offeror’s FX Margin for Position Transfer ....... 32

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CHAPTER V. MISCELLANEOUS PROVISIONS...................................................................... 33
Article 31. Change in Settlement Method, etc......................................................................... 33
Article 32. Management of FX Exchange Margin .................................................................. 33
SUPPLEMENTARY PROVISIONS ................................................................................................ 33

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Table of Contents

CHAPTER I.
GENERAL PROVISIONS

Article 1.

Purpose

1.1
These Regulations set forth the matters necessary to stipulate in connection with
margins and unsettled contracts in connection with FX Daily Futures transactions and otherrelated matters in accordance with the Exchange’s regulations as follows: Article 1-2 of theTrading Regulations, Article 30 of the Clearing Regulations, and Article 11-4 of theBrokering Terms.
1.2
Amendments to Section 3 of Chapter II and Chapter IV shall be effected byobtaining the consent of the Self-regulatory Committee.

Article 2.

Definitions

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

(2)

A “deposited FX Exchange Margin” means the amount of FX Exchange
Margin (including the amount of FX variation transferred pursuant to
Article 11 or 25 hereof) already deposited with the Exchange.

(3)“FX Margin” means a sum of: (i) the amount of FX Exchange Margin
already deposited by an FX Daily Futures Trading Member or an FX
Daily Futures Customer with the Exchange and (ii) the amount of fixed

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1

FX variation of the said FX Daily Futures Trading Member or FX Daily
Futures Customer if it is greater than zero.
(4)

An “FX Margin amount” means the amount of FX Margin.

(5)

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

(6)

An “FX Daily Futures Customer account position” and “FX Daily Futures
Customer account short position” or “FX Daily Futures Customer accountlong position”, as the case may be, means the short or long positions
relevant to an FX Daily Futures contract which has been executed basedon an FX Daily Futures Customer’s order.

(7)

An “FX Margin reference amount” means the Japanese Yen amount that
underlies the FX Exchange Margin to be deposited with the Exchange fora house account position or for an FX Daily Futures Customer accountposition. An FX Margin reference amount shall be in the amount as
determined by the Exchange.

(8)“FX variation” means FX variation as defined in Article 90-8.1 of the
Clearing Regulations.

(9)“Fixed FX variation” means the FX variation for positions for settlementthat has not yet been transferred to FX Exchange Margin pursuant to
Article 11 or 25 hereof.

(10)“Unsettled FX variation” means FX variation other than fixed FX
variation.

(11)

An “FX Margin-Required Amount” means the FX Margin reference
amount multiplied by larger of the total volume of short positions or longpositions held as adjusted based on the amount of FX variation, wherein(i) if the FX variation is greater than zero, its amount shall be subtracted

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2

from the FX Margin reference amount multiplied by the position volumeand (ii) if the FX variation is less than zero, the absolute value of its
amount shall be added to the FX Margin reference amount multiplied by
the position volume, as calculated for each type of FX Daily Futurescontracts.
(12)

A “shortfall” in FX Exchange Margin under Articles 4 and 18 hereofmeans the absolute value of either the amount of FX Exchange Margin or
the deposited FX Exchange Margin, minus the FX Margin-Required
Amount; provided, however, that, if the result of subtraction is a positive
number, then the shortfall shall be zero.

(13)“FX Daily Futures Trading Member” means an FX Daily Futures Trading
Member as defined in Article 2 of the Trading Member Regulations.

(14)

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

(15)“Daily Futures Clearing Member” means a Daily Futures Clearing
Member as defined in Article 3.3 of the Clearing Regulations.

(16)“FX Daily Futures Non-Clearing Member” means an FX Daily Futures
Trading Member who does not have a Daily Futures Clearing
Membership as defined in Article 3.2 (2) of the Clearing Regulations.

(17)

Except in Article 22-2.1 and Article 22-3.1 hereof, a “trading day” means
the trading day as defined in Article 8 of the Special Provisions for
Trading Regulations for FX Daily Futures Transactions (hereinafter called
the “FX Special Provisions”) for any type of FX Daily Futures contract.

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Article 3.

Purpose of FX Margin

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

CHAPTER II.
RIGHTS AND DUTIES OF FX DAILY FUTURES TRADING MEMBERIN REGARD TO FX MARGINS

Section 1. Depositing of FX Exchange Margin

Article 4.

Separate Depositing

4.1
When a Daily Futures Clearing Member has executed an FX Daily Futurescontract in its own name, or when the deposited FX Exchange Margin becomes deficient,
the FX Daily Futures Trading Member shall deposit the stated amount of FX Exchange
Margin or the amount equal to the shortfall as FX Exchange Margin with the Exchange, in
accordance with the classifications set forth in Article 4.3 below in the manner separately
prescribed by the Exchange, by 10:00 a.m. of a calendar day on which there occurs the
opening of the Market Trading Period of the second trading day following the trading day
on which the obligation of depositing arises (if any calendar day on which there occurs the
opening of the Market Trading Period of the first or the second trading day following the
trading day on which the obligation of depositing arises is a Japanese bank holiday, suchday shall be excluded for the purpose of recognition of the first and second trading days).

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44.2
Each FX Daily Futures Non-Clearing Member shall deposit with its Designated
Clearing Member an FX Exchange Margin in accordance with the classifications set forthin Article 4.3 (4) through (6).
4.3
The classifications of FX Exchange Margin to be deposited are as set forth in each
Item below:(1)

Those deposited for Daily Futures Clearing Member’s house account(2)

Those deposited for the Customer account position of Daily Futures
Clearing Member by way of direct deposit set forth in Article 6 hereof(3)

Those deposited for the Customer account position of Daily Futures
Clearing Member by way of advanced deposit set forth in Article 7 hereof(4)

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

Those deposited for the Customer account position of Daily Futures
Non-Clearing Member by way of direct deposit set forth in Article 6.1
hereof(6)

Those deposited for the Customer account position of Daily Futures
Non-Clearing Member by way of advanced deposit set forth in Article 7.1
hereof

4.4
Depositing in accordance with the proviso to Article 5.3 hereof shall be treated as
depositing pursuant to Article 4.3 (3).
4.5
An FX Daily Futures Trading Member shall furnish the Exchange with the
documents relating to the FX Exchange Margins in accordance with the conditions
separately prescribed by the Exchange.

Article 5.
5.1

FX Exchange Margin for House Account Positions

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

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5the amount not less than the FX Margin-Required Amount applicable to its house accountpositions, in the manner prescribed by the Exchange.
5.2
FX Exchange Margin shall not be deposited in the form of negotiable securities,
but shall be deposited in the currency of Japanese Yen.
5.3
Each FX Daily Futures Non-Clearing Member shall deposit an FX Exchange
Margin with the Exchange through its Designated Clearing Member as its agent. If the
FX Daily Futures Non-Clearing Member fails to deposit all or part of the FX Exchange
Margin, the Designated Clearing Member may deposit from its own property an amount
not less than the said FX Exchange Margin by way of advanced deposit until the trading
day immediately following the trading day on which such FX Daily Futures Non-Clearing
Member shall have deposited all of the FX Exchange Margin required to be deposited by
the FX Daily Futures Non-Clearing Member with such Designated Clearing Member (anytrading day that is a Japanese bank holiday shall be excluded for the purpose of recognitionof the following trading day counted as aforesaid).
5.4
In addition to the provisions of these Regulations, any matters necessary to
stipulate in connection with the FX Exchange Margins for FX Daily Futures contracts shallbe separately prescribed by the Exchange.

Article 6.

Direct Depositing of FX Exchange Margin

6.1
If an FX Daily Futures Trading Member receives an FX Exchange Margin from an
FX Daily Futures Customer in accordance with Article 18 or Article 25-4 hereof, the FX
Daily Futures Trading Member shall immediately report such receipt to the Exchange anddeposit the full amount so received with the Exchange (such manner of depositing being
hereinafter called “direct deposit(ing)”) as agent for the FX Daily Futures Customer.
6.2
If the FX Daily Futures Trading Member who receives an FX Exchange Margin is
an FX Daily Futures Non-Clearing Member, the Customer shall deposit such Exchange
Margin with the Exchange through the FX Daily Futures Non-Clearing Member and its
Designated Clearing Member as agent of such Customer respectively.

Article 7.

Advanced Depositing of FX Exchange Margin by FX Daily Futures

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6

Trading Member
7.1
Where an FX Daily Futures Customer is required to deposit an additional amountof FX Exchange Margin pursuant to Article 18 or Article 25-4 hereof, if the FX Exchange
Margin relevant to the FX Daily Futures Customer’s orders has not yet been deposited with
the Exchange, the concerned FX Daily Futures Trading Member shall deposit the FX
Exchange Margin in an amount not less than the amount of the shortfall from its own
property on behalf of the FX Daily Futures Customer (such manner of depositing being
hereinafter called “advanced deposit(ing)”) by 10:00 a.m. of the second trading day
following the trading day on which the obligation of additional depositing arises (anytrading day that is a Japanese bank holiday shall be excluded for the purpose of recognitionof the first and second trading days counted as aforesaid).
7.2

In the case of advanced depositing by an FX Daily Futures Trading Member

pursuant to Article 7.1 above, such advance deposit may be made or continued at any timewithin three (3) Japanese banking days after the calendar day on which there occurs the
opening of the Market Trading Period on the trading day on which such advance deposit ismade.

Section 2. Claim for Refund of FX Margin

Article 8.

Claim for Refund of FX Margin

8.1
Each FX Daily Futures Trading Member or FX Daily Futures Customer shall beentitled to claim to the Exchange a refund of the money in the amount equal to the FX
Margin amount.
8.2
Notwithstanding the provision of Article 8.1 above, a Daily Futures Clearing
Member, FX Daily Futures Non-Clearing Member or FX Daily Futures Customer shallrespectively be entitled to claim to the Exchange a refund of the FX Margin deposited in
the manner set forth in each of the following Items, whichever is applicable, in the amountset forth in the same Item. In this connection, the amount of obligations with respect to
FX Daily Futures contracts payable by a Daily Futures Clearing Member to the Exchange
is hereinafter called the “FX Daily Futures Clearing Member Outstanding Obligation”, the

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amount of those payable by an FX Daily Futures Non-Clearing Member to its Designated
Clearing Member is hereinafter called the “FX Daily Futures Non-Clearing Member
Outstanding Obligation”, the amount of those payable by an FX Daily Futures customer toan FX Daily Futures Trading Member who has deposited an FX Exchange Margin ishereinafter called the “FX Daily Futures customer Outstanding Obligation”, the amount of
those payable by an FX Daily Futures intermediate broker to an FX Daily Futures Trading
Member who has deposited an FX Exchange Margin is hereinafter called the “FX Daily
Futures intermediate broker Outstanding Obligation”, and the amount of those payable by
an FX Daily Futures offeror to an FX Daily Futures intermediate broker who has
deposited an FX Exchange Margin is hereinafter called the “FX Daily Futures offeror
Outstanding Obligation”.
(1)

If an FX Daily Futures Trading Member deposits an FX Margin with the
Exchange for its house account positions;(a)Where the claimant is a Daily Futures Clearing Member:
The amount claimable by the Daily Futures Clearing Member
shall be the amount of the FX Margin deposited by it plus the FX
Daily Futures Non-Clearing Member Outstanding Obligation outof the FX Margin deposited by the FX Daily Futures
Non-Clearing Member (and, minus the FX Daily Futures
Clearing Member Outstanding Obligation, if any); and(b)

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

(2)

With respect to an FX Margin deposited by an FX Daily Futures
Customer with the Exchange:(a)

FX Margin Regulations

The amount claimable by the FX Daily Futures Customer shallbe the FX Margin amount relevant to the FX Daily Futures

8

Customer minus the FX Daily Futures customer Outstanding
Obligation (or minus the FX Daily Futures offeror Outstanding
Obligation, if the FX Daily Futures Customer is an FX Daily
Futures offeror).
(b)

The amount claimable by the Daily Futures Clearing Member
shall be the FX Margin amount relevant to the FX Daily Futures
Customer (but excluding the FX Daily Futures Clearing Member
Outstanding Obligation relevant to the FX Daily Futures
Customer’s FX Daily Futures contracts, if any) minus: (i) theamount claimable as set forth in (a) above, (ii) the amount of therelevant FX Daily Futures intermediate broker’s claim for refund
set forth in Article 22.1 hereof and (iii) the amount claimable as
set forth in (c) below.

(c)

Where the claimant is an FX Daily Futures Non-Clearing
Member:
The amount claimable by the FX Daily Futures Non-Clearing
Member shall be the amount set forth in (i) and (ii) below:(i)Where the FX Daily Futures Non-Clearing Member hasreceived the FX Exchange Margin from an FX Daily
Futures customer:
The amount claimable by the FX Daily Futures
Non-Clearing Member shall be the amount of the FX
Daily Futures Customer Outstanding Obligation minus
the FX Daily Futures Non-Clearing Member Outstanding
Obligation; and(ii)

Where the FX Daily Futures Non-Clearing Member hasreceived the FX Exchange Margin from an FX Daily
Futures intermediate broker or an FX Daily Futuresofferor:The amount claimable by the FX Daily Futures

FX Margin Regulations

9Non-Clearing Member shall be the amount of the FX
Daily Futures Intermediate Broker Outstanding
Obligation minus the FX Daily Futures Non-Clearing
Member Outstanding Obligation.
(3)

If an FX Daily Futures Trading Member makes advanced depositing, inwhole or in part, for the FX Exchange Margin relevant to a certain FX
Daily Futures Customer’s FX Daily Futures contracts pursuant to Article
7 hereof,(a)Where the claimant is a Daily Futures Clearing Member:
The amount claimable by the Daily Futures Clearing Member
shall be the amount of the FX Exchange Margin deposited by it
by advanced deposit (less the FX Daily Futures Clearing
Member Outstanding Obligation relevant to the FX Daily Futures
Customer with respect to the FX Margin deposited by the FX
Daily Futures Customer, if any) minus the amount of (b) below;
and

(b)

Where the claimant is an FX Daily Futures Non-Clearing
Member:
The amount claimable by the FX Daily Futures Non-Clearing
Member shall be the amount of the FX Margin deposited by it byadvanced deposit (less the FX Daily Futures Non-Clearing
Member Outstanding Obligation relevant to the FX Daily Futures
Customer with respect to the FX Margin deposited by the FX
Daily Futures Customer, if any).

8.3
If an FX Daily Futures Trading Member or FX Daily Futures Customer exercises
its claim for refund relevant to any FX Margin, such claim shall be exercised by means ofdrawing of its FX Exchange Margin pursuant to Article 14 hereof.

Article 8-2

Refund of FX Exchange Margin

FX Margin Regulations10

8-2.1 If an FX Daily Futures Trading Member who is an FX Daily Futures Non-Clearing
Member claims a refund to the Exchange with respect to the FX Exchange Margindeposited in accordance with Articles 5.1 and 5.3 hereof, the Exchange shall make therefund to the Designated Clearing Member acting as an agent for the FX Daily Futures
Non-Clearing Member.
8-2.2 If a refund is claimed by a person set forth in each Item below with respect to the
FX Exchange Margin deposited by it in accordance with Article 6 hereof, the Exchange
shall refund the FX Exchange Margin in a manner set forth in the relevant Item:(1)

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

(2)

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

(3)

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

(4)

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

8-2.3 If a refund is claimed by a person set forth in each Item below with respect to the
FX Exchange Margin deposited by it in accordance with Article 7 hereof, the Exchange
shall refund the FX Exchange Margin in a manner set forth in the relevant Item:(1)

Where the claimant is a Daily Futures Clearing Member:

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11

The Exchange shall make the refund directly to the FX Daily Futures
Clearing Member.
(2)

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

Article 9.
9.1

Drawing of FX Exchange Margin and Restriction

No FX Daily Futures Trading Member shall be allowed to draw any FX Margin

for its house account position and any FX Margin for FX Daily Futures contracts for an FX
Daily Futures Customer account position. Notwithstanding the foregoing, when the FX
Margin amount is greater than the sum of the amounts set forth below as calculated foreach type of FX Daily Futures contracts, the FX Daily Futures Trading Member shall beallowed to draw an amount not exceeding such difference from the FX Exchange Margin in
accordance with the conditions separately prescribed by the Exchange.
(1)

The FX Margin reference amount multiplied by the total volume of shortpositions held or long positions held, whichever is greater(2)

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

9.2
If the FX Exchange Margin to be drawn pursuant to Article 9.1 above is for an FX
Daily Futures Customer account position, the drawing claimed by the FX Daily Futures
Trading Member shall be based on the FX Daily Futures Customer’s request.
9.3
No FX Daily Futures Trading Member shall be allowed to draw any FX Exchange
Margin that is deposited with the Exchange by advanced depositing pursuant to Article 7
hereof. Notwithstanding the foregoing, when such advanced deposit is no longer
necessary, the FX Daily Futures Trading Member shall be entitled to draw the FX
Exchange Margin to the extent of the portion for which advanced depositing is no longer
required.

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9.4
With respect to the FX Exchange Margin in a foreign currency which arises for thedesignated FX Market Maker (as defined in Article 17-2.1 of the FX Special Provisions;this definition shall similarly apply in this paragraph), Article 9.1 above shall apply to the
FX Exchange Margin as converted into Japanese Yen by the FX settlement price (meaning
the FX settlement price of Yen Currency Pairs transaction which is a Large transaction ifsuch FX Exchange Margin arises from the Large transaction (meaning a Large transaction
as defined in Article 2 (23) of the FX Special Provisions) and the FX settlement price of
Yen Currency Pairs transaction which is a Non-large transaction if such FX Exchange
Margin arises from the Non-large transaction (meaning a Non-large transaction as definedin Article 2 (24) of the FX Special Provisions)) applied to the Yen Currency Pairs
transaction (meaning a Yen Currency Pairs transaction as defined in Article 2(19) of the
FX Special Provisions) concerning such foreign currency. Provided, however, no FX Daily
Futures Trading Member shall be allowed to draw the FX Exchange Margin in the amountexceeding the sum deposited in Japanese Yen as the FX Exchange Margin.

Article 10.

Disbursement of FX Exchange Margin

In the event of a claim for drawing of FX Exchange Margin pursuant to Article 9
hereof, the portion attributable to an FX Daily Futures Customer shall be disbursed by the
Exchange to the FX Daily Futures Trading Member as agent for the FX Daily Futures
Customer (if the FX Daily Futures Trading Member is an FX Daily Futures Non-Clearing
Member, the FX Daily Futures Trading Member and its Designated Clearing Member).

Article 11.

Transfer of FX Variation for Settlement to FX Exchange Margin

11.1
If an FX Daily Futures Trading Member’s notification or execution of offsetting
transaction (as defined in Article 90-7.1 of the Clearing Regulations; this definition shall
similarly apply hereinafter) for any of its house account positions generates FX variation in
relation to such position, the amount of the FX variation shall be transferred to FX
Exchange Margin by 10:00 a.m. on the settlement date (as defined in Articles 4.2 and 4.3 of
the FX Special Provisions; this definition shall similarly apply hereinafter) for the contract
day on which the notification or execution of offsetting transaction is made.
11.2

The Exchange may temporarily change the time and date for the transfer set forth

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13

in Article 11.1 above when the Exchange deems necessary to do so. In this case, theExchange shall give an advance notice to that effect to the FX Daily Futures Trading
Members.

Section 3.

Treatment of FX Daily Futures Contracts upon Suspension fromTransaction or Other Measures Taken

Article 12.

Suspension of Refund of FX Margin due to Suspension fromTransactions or Other Measures Taken

If an FX Daily Futures Trading Member becomes or is deemed likely to become
insolvent and the Exchange imposes suspension from or restriction on transactions or othermeasure (hereinafter called “disciplinary measure”) on such FX Daily Futures Trading
Member (hereinafter called the “Suspended Member”) pursuant to Articles 61 through 63of the Trading Member Regulations, the Exchange shall temporarily refrain from refunding
the FX Margin to the Suspended Member and its FX Daily Futures Customers for whom
the Suspended Member acts as agent.

Article 13.

Treatment of Unsettled Positions based on Orders by Suspended
Member’s FX Daily Futures Customers

13.1
When a disciplinary measure is imposed on a Suspended Member, the Suspended
Member shall immediately inform its FX Daily Futures Customers (except for FX Daily
Futures offerors; this exception shall apply hereafter in Articles 13, 14 and 15 hereof) tothat effect. In this case, if the Exchange determines to require such position to betransferred to any other FX Daily Futures Trading Member or liquidated pursuant to Article
38.1 of the Trading Member Regulations with respect to the Unsettled Positions based on
any order by the Suspended Member’s FX Daily Futures Customer, the Suspended
Member shall inform those FX Daily Futures Customers of such transfer or liquidation andother necessary matters as well.
13.2
The position transfer to any other FX Daily Futures Trading Member set forth in
Article 13.1 above shall be implemented when any of the Suspended Member’s FX Daily

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14

Futures Customers requests another FX Daily Futures Trading Member to accept such
position transfer and such FX Daily Futures Trading Member as position transferee delivers
a written consent to such position transfer to the Exchange by the time and date designatedby the Exchange, whereupon the Exchange shall adopt the prices or figures designated by
the Exchange as the contract prices of the Unsettled Positions thus transferred.
13.3
The liquidation set forth in Article 13.1 above shall be implemented in the mannerprescribed by the Exchange, when the Suspended Member informs the Exchange of suchliquidation based on its FX Daily Futures Customer’s instruction.
13.4
If the FX Daily Futures Customer does not obtain the position transferee’s consent
by the time and date designated by the Exchange under Article 13.2 above, or if the FX
Daily Futures Customer does not give the liquidation instruction set forth in Article 13.3
above, the Exchange shall liquidate the Unsettled Positions based on the FX Daily Futures
Customer’s order for its account in the manner prescribed by the Exchange.

Article 14.

Treatment of FX Margin for Transfer of Unsettled Position

If the position transfer to any other FX Daily Futures Trading Member isimplemented in accordance with Article 13 above, the relevant FX Margin shall be treatedin the following manners.
(1)

With respect to the FX Margin deposited by the FX Daily Futures
Customer, the FX Margin in the amount of the claim for refund held by
the FX Daily Futures Customer shall be deemed to be deposited with the
Exchange through the position transferee acting as agent for the FX Daily
Futures Customer.

(2)

Article 15.
15.1

If the FX Margin which is deemed to be deposited under Item (1) above isrefunded to the FX Daily Futures Customer, it shall be refunded throughthe position transferee acting as agent for the FX Daily Futures Customer.

Treatment of FX Margin after Liquidation

When the liquidation under Article 13 hereof is implemented, each of the FXFX Margin Regulations

15

Daily Futures Trading Member and the FX Daily Futures Customer concerned may
exercise the claim for refund of the FX Margin relevant to the liquidated contract orposition directly against the Exchange.
15.2
If the claim for refund of FX Margin set forth in Article 15.1 above is exercised
directly against the Exchange, the Exchange shall make the refund after a reasonable periodof time necessary for calculating the amount to be refunded.

Article 16.

Other Treatment for Transfer of Unsettled Positions

In addition to the provisions of Articles 12 through 15 hereof, any mattersnecessary for transfer of Unsettled Positions shall from time to time be prescribed by the
Exchange.

CHAPTER III.
FX MARGIN FOR FX DAILY FUTURES CUSTOMER ACCOUNTPOSITIONS

Article 17.

Purpose of this Chapter

17.1
The purpose of this Chapter III is to stipulate the relationship between FX Daily
Futures Customers and FX Daily Futures Trading Members.
17.2
Notwithstanding the provision of Article 17.1 above, the relationship between an
FX Daily Futures Customer who is an FX Daily Futures intermediate broker (toritsugisya)
and an FX Daily Futures offeror (moshikomisya) shall be treated in the same manner as
between an FX Daily Futures Trading Member and an FX Daily Futures customer(itakusya) for the purpose of treatment of transactions. In this case, Article 20 hereof shallbe excluded in the application of this Chapter III, and the following terms referred to in this
Chapter III except for Articles 18.2, 21, 22 and 25 hereof shall be replaced respectively as
follows: “FX Daily Futures Trading Member” with “FX Daily Futures intermediate

FX Margin Regulations

16

broker”, “position transferee” with “FX Daily Futures intermediate broker to the positiontransferee”, “FX Daily Futures Customer” with “FX Daily Futures offeror”, and “order”
placed by an FX Daily Futures Customer or any equivalent expression thereof with “offer
for intermediation of ordering”.

Article 18.

Deposit of FX Exchange Margin

18.1
If an FX Daily Futures Customer’s amount of FX Exchange Margin falls short of
the FX Margin-Required Amount on any trading day and thus the FX Exchange Margin
becomes deficient, the concerned FX Daily Futures Trading Member shall notify the FX
Daily Futures Customer of the amount of such shortfall. In this case, the FX Daily
Futures Customer shall place or deposit a sum not less than the amount of the shortfall, inthe currency of Japanese Yen, with the FX Daily Futures Trading Member as FX Exchange
Margin, not later than the time and date designated by the FX Daily Futures Trading
Member, which date shall fall before the second trading day following the trading day on
which the shortfall arises (any trading day that is a Japanese bank holiday shall be excluded
for the purpose of recognition of the first and second trading days counted as aforesaid).
18.2
Where the provisions of Article 18.1 above apply in accordance with Article 17.2
hereof, the FX Daily Futures intermediate broker shall, acting as agent for an FX Daily
Futures offeror, place or deposit with the FX Daily Futures Trading Member the fullamount of the FX Exchange Margin received from the FX Daily Futures offeror.
18.3

No FX Daily Futures Customer shall be allowed to place FX Exchange Margin in

the form of negotiable securities, but shall place it in the currency of Japanese Yen.

Article 19.

Deposit of Ordering Margin

19.1
Before submitting a bid or offer for an FX Daily Futures contract based on anorder of an FX Daily Futures Customer (excluding those who are Professional Investors as
defined in Article 2, Paragraph 31 of the Act and who are regarded as Professional
Investors pursuant to Article 34-3 of the Act), the concerned FX Daily Futures Trading
Member shall require that the FX Daily Futures Customer deposit the FX Exchange Margin
as a precondition for such submission (hereinafter called “Ordering Margin”) with the
Exchange.

FX Margin Regulations

17

19.2
For the purpose of calculating an amount of Ordering Margin, if a loss is incurredby the FX Daily Futures Customer when the FX Daily Futures contract of such FX Daily
Futures Customer is settled, the FX Daily Future Trading Member shall deduct the amountof such loss and, if a gain arises from the settlement thereof, the FX Daily Futures Trading
Member may add the amount of such gain.
19.3

The amount of the Ordering Margin set forth in Articles 19.1 and 19.2 above shallbe determined within a reasonable range by the FX Daily Futures Trading Member basedon the FX Margin reference amount.

Article 20.

FX Daily Futures Customer’s Claim for Refund

20.1
If an FX Daily Futures customer has deposited an FX Margin, the FX Daily
Futures customer shall be entitled to claim to the Exchange a refund of the FX Margin
amount minus its FX Daily Futures customer Outstanding Obligation.
20.2
No FX Daily Futures customer shall be allowed to exercise its claim for refund of
its FX Margin directly to the Exchange, unless the Exchange deems it necessary, and the
FX Daily Futures customer’s claim for refund as aforesaid shall be exercised through theconcerned FX Daily Futures Trading Member (or with respect to Securities, etc.
Clearing-Brokering Contracts, the FX Daily Futures Non-Clearing Member through which
the FX Exchange Margin has been placed and its Designated Clearing Member).

Article 21.

FX Daily Futures Offeror’s Claim for Refund

21.1
If an FX Daily Futures offeror has deposited an FX Margin, the FX Daily Futuresofferor shall be entitled to claim to the Exchange a refund of the FX Margin amount minus
its FX Daily Futures offeror Outstanding Obligation.
21.2
No FX Daily Futures offeror shall be allowed to exercise its claim for refund of its
FX Margin directly to the Exchange, unless the Exchange deems it necessary, and the FX
Daily Futures offeror’s claim for refund as aforesaid shall be exercised through theconcerned FX Daily Futures intermediate broker and FX Daily Futures Trading Member(or with respect to Securities, etc. Clearing-Brokering Contracts, the FX Daily Futures

FX Margin Regulations

18

Non-Clearing Member who accepted the order of FX Daily Futures contract from the FX
Daily Futures intermediate broker and its Designated Clearing Member).

Article 22.

FX Daily Futures Intermediate broker’s Claim for Refund

22.1
If an FX Daily Futures offeror has deposited an FX Margin, the concerned FX
Daily Futures intermediate broker shall be entitled to claim to the Exchange a refund of the
FX Margin in the amount equal to the FX Daily Futures offeror Outstanding Obligation(but excluding the FX Daily Futures intermediate broker Outstanding Obligation relevantto the FX Daily Futures offeror’s FX Daily Futures contracts, if any).
22.2

No FX Daily Futures intermediate broker shall be allowed to exercise its claim forrefund of its FX Margin directly to the Exchange, unless the Exchange deems it necessary,and the FX Daily Futures intermediate broker’s claim for refund as aforesaid shall be
exercised through the concerned FX Daily Futures Trading Member. (in the case of
Securities, etc. Clearing-Brokering Contracts, through the FX Daily Futures Non-Clearing
Member and its Designated Clearing Member who accepted orders for FX Daily Futurescontracts from the FX Daily Futures intermediate broker).

Article 22-2. FX Margin Reference Amount Applied to Individual Customers
22-2.1 The FX Margin reference amount per trading unit of FX Daily Futures contract(hereinafter called “FX Margin reference amount for Individual Customer”) which isapplied to the FX Daily Futures Customer account position with respect to a customer who
is referred to in Article 117, Paragraph 1, Item 27 of Cabinet Office Ordinance on Financial
Instruments Businesses (Cabinet Office Ordinance No. 52 of 2007) (hereinafter called“Individual Customer”) shall be obtained as the principal amount of the relevant type of FX
Daily Futures contract multiplied with the percentage figure separately designated by the
Exchange and translated into Japanese Yen amount by the average of the FX settlement
prices of the relevant FX Daily Futures contract calculated from the Japanese
Yen-equivalent amount of the said principal amount per its currency unit (with respect toKorean Won-Japanese Yen FX Daily Futures contract, the Japanese Yen-equivalent amountof the said principal amount per 100 units of such currency) on five (5) trading days prior
to (and including) the last trading day of every week (hereinafter called “Calculation
Date”), with any fraction of less than ten Japanese Yen amount being rounded up.

FX Margin Regulations

19

22-2.2 Notwithstanding Article 22-2.1 above, if the FX Margin reference amount for
Non-individual Customer calculated pursuant to Article 22-3.1 hereof is larger than the FX
Margin reference amount for Individual Customer calculated pursuant to Article 22-2.1
above, the amount equivalent to such FX Margin reference amount for Non-individual
Customer may be used as the FX Margin reference amount for Individual Customer.
22-2.3 The FX Margin reference amount for Individual Customer shall apply from thefirst trading day through the last trading day in the second week following the week inwhich the relevant Calculation Date falls.
22-2.4 When the Exchange determines that it is inappropriate to determine the FX Margin
reference amount pursuant to Articles 22-2.1, 22-2.2 and 22-2.3 above, it may determine
the FX Margin reference amount deemed appropriate by it from time to time.
22-2.5 When the Exchange determines the FX Margin reference amount for Individual
Customer, it shall notify the FX Daily Futures Trading Members of such FX Margin
reference amount for Individual Customer and announce the same as well.

Article 22-3. FX Margin Reference Amount Applied to House Account Position or
Non-Individual Customer Position
22-3.1 The FX Margin reference amount per trading unit of FX Daily Futures contract(hereinafter called “FX Margin reference amount for Non-individual Customer”) which isapplied to a house account position or a customer account position of a Customer otherthan an Individual Customer (hereinafter called “Non-Individual Customer”) shall becalculated for each type of FX Daily Futures contract in accordance with the method set
forth below:(1)

With respect to each trading day during eight (8) weeks and one hundredand four (104) weeks preceding the week in which a certain Calculation
Date falls (in either case, including such week), numerical value shall becalculated by dividing an FX Settlement Price on a certain trading day bythat on the immediately preceding trading day.

(2)

The natural logarithm shall be taken with respect to each of the numerical

FX Margin Regulations

20

values for such eight (8) weeks and one hundred and four (104) weeks
obtained pursuant to Article 22-3.1 (1) above respectively.
(3)

The standard deviation shall be obtained for the numerical values for sucheight (8) weeks and one hundred and four (104) weeks obtained pursuant
to Article 22-3.1 (2) above respectively.

(4)

Each of the numerical values for such eight (8) weeks and one hundredand four (104) weeks obtained pursuant to Article 22-3.1 (3) above shallbe multiplied by 2.33.

(5)The principal amount of the relevant type of FX Daily Futures contract
shall be multiplied by each numerical value for such eight (8) weeks andone hundred and four (104) weeks obtained pursuant to Article 22-3.1 (4)above and translated into Japanese Yen amount by the average of the FX
settlement prices of the relevant FX Daily Futures contract calculated
from the Japanese Yen-equivalent amount of the said principal amountper its currency unit (with respect to Korean Won-Japanese Yen FX Daily
Futures contract, the Japanese Yen-equivalent amount of the saidprincipal amount per 100 units of such currency) on five (5) trading days
prior to (and including) the Calculation Date, with any fraction of lessthan ten Japanese Yen amount being rounded up.

(6)

The larger of the amounts for such eight (8) weeks and one hundred andfour (104) weeks obtained pursuant to Article 22-3.1 (5) above shall be
the FX Margin reference amount for Non-Individual Customer.

22-3.2 The FX Margin reference amount for Non-Individual Customer shall apply fromthe first trading day through the last trading day in the second week following the week inwhich the relevant Calculation Date falls.
22-3.3 When the Exchange determines that it is inappropriate to determine the FX Margin
reference amount for Non-individual Customer pursuant to Articles 22-3.1 and 22-3.2
above, it may determine the FX Margin reference amount for Non-individual Customer
deemed appropriated by it from time to time.
22-3.4 When the Exchange determines the FX Margin reference amount for

FX Margin Regulations

21

Non-individual Customer, it shall notify the FX Daily Futures Trading Members of such
FX Margin reference amount for Non-individual Customer and announce the same as well.
22-3.5 Notwithstanding Article 22-3.1 above, an FX Daily Futures Trading Member may
apply an FX Margin reference amount for Individual Customer to Customer accountposition of Non-Individual Customer, provided, however, if the FX Margin reference
amount for Non-Individual Customer is larger than the FX Margin reference amount for
Individual Customer, it shall apply the amount equivalent to such FX Margin reference
amount for Non-Individual Customer to such Customer account position of Non-Individual
Customer.

Article 22-4. FX Margin Reference Amount Applied to FX Market Maker
22-4.1 Notwithstanding the provisions of Article 22-3.1, the FX Margin reference amountper trading unit of FX Daily Futures contract (hereinafter called “FX Margin reference
amount for MM”) which is applied to positions with respect to MM bid and offer held by
an FX Market Maker (meaning an FX Market Maker defined in Article 2 (4) of the FX
Special Provisions; this definition shall similarly apply hereinafter) shall be obtained as theprincipal amount of the relevant type of FX Daily Futures contract multiplied by four
hundredth (0.04) and translated into Japanese Yen amount by the average of the FX
settlement prices of the relevant FX Daily Futures contract calculated from the Japanese
Yen-equivalent amount of the said principal amount per its currency unit (with respect toKorean Won-Japanese Yen FX Daily Futures contract, the Japanese Yen-equivalent amountof the said principal amount per 100 units of such currency) on five (5) trading days prior
to (and including) the Calculation Date, with any fraction of less than ten Japanese Yenamount being rounded up.
22-4.2 Notwithstanding the provisions of Article 22-4.1, if the FX Margin reference
amount for Non-Individual Customer calculated pursuant to Article 22-3.1 hereof is larger
than the FX Margin reference amount for MM calculated pursuant to Article 22-4.1 above,
the amount equivalent to such FX Margin reference amount for Non-Individual Customer
shall be the FX Margin reference amount for MM.
22-4.3 The FX Margin reference amount for MM shall apply from the first trading day
through the last trading day in the second week following the week in which the relevant
Calculation Date falls.

FX Margin Regulations2222-4.4 When the Exchange determines that it is inappropriate to determine the FX Margin
reference amount for MM pursuant to Articles 22-4.1, 22-4.2 and 22-4.3 above due tofluctuation of foreign exchange rates or any other reason, it may determine the FX Margin
reference amount for MM deemed appropriate by it from time to time.
22.4-5 When the Exchange determines the FX Margin reference amount for MM, it shallnotify the FX Market Makers of such FX Margin reference amount for MM and announce
the same as well.

Article 23.

Drawing of FX Exchange Margin and Restriction

23.1
An FX Daily Futures Trading Member shall not allow an FX Daily Futures
Customer to draw any FX Margin for FX Daily Futures contracts based on the FX Daily
Futures Customer’s order. Notwithstanding the foregoing, when the FX Margin amount isgreater than the sum of the amount calculated for each type of FX Daily Futures contracts
as set forth below, the FX Daily Futures Trading Member may permit drawing in an
amount not exceeding such difference from the FX Exchange Margin.

23.2

(1)

The FX Margin reference amount multiplied by the total volume of shortpositions held or long positions held, which ever is greater(2)

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

The FX Margin reference amount set forth in Article 23.1 (1) above may be

increased, within a reasonable range, to an amount to be determined by an FX Daily
Futures Trading Member.

Article 24.

Refund of FX Exchange Margin

If FX Daily Futures contracts based on a certain FX Daily Futures Customer’sorder cease to exist as a result of notification or execution of offsetting transaction, if theOrdering Margin is no longer required to be deposited as a result of cancellation of the bid
or offer for an FX Daily Futures contract, or if the FX Margin is available for drawing
pursuant to Article 23 hereof, the concerned FX Daily Futures Trading Member shall, uponreceipt of the FX Daily Futures Customer’s claim for refund of the FX Exchange Margin,

FX Margin Regulations

23

refund to the FX Daily Futures Customer the FX Exchange Margin which such FX Daily
Futures Trading Member is obligated to refund to such FX Daily Futures Customer without
delay.

Article 25.
25.1

Transfer of FX Variation for Settlement to FX Exchange Margin

If an FX Daily Futures Trading Member’s notification or execution of offsetting

transaction for a position relevant to any FX Daily Futures contract executed based on an
FX Daily Futures Customer’s order generates FX variation in relation to such position, theamount of the FX variation shall be transferred to FX Exchange Margin by 10:00 a.m. of
the settlement date for the trading day on which the notification or execution of offsetting
transaction is made.
25.2
When the Exchange deems necessary to do so, the Exchange may temporarilychange the time and date for the transfer set forth in Article 25.1 above. In this case, theExchange shall give an advance notice to that effect to the FX Daily Futures Trading
Members.

CHAPTER III-II.
TREATMENT OF FX MARGIN, ETC. UNDER COMBINEDMANAGEMENT

Article 25-2. Purpose of this Chapter
The purpose of this Chapter III-II is to stipulate the treatment of the FX Exchange
Margin and the Equity Index Exchange Margin (meaning the Equity Index Exchange
Margin as defined in Article 2(1) of the Regulations for Margin and Unsettled Contracts for
Equity Index Daily Futures Transactions (hereinafter called the “Equity Index Margin
Regulations”); which interpretation shall equally apply hereinbelow) to be dealt with in an
FX/Equity Index Daily Futures Transactions Account for Combined Management definedin Article 6-2-4.1 of the Brokering Terms between an FX Daily Futures Trading Member

FX Margin Regulations

24

who conducts Combined Management provided in Article 25-3.2 below (hereinafter called“Trading Member Conducting Combined Management”) and an FX Daily Futures
Customer who has established such FX/Equity Index Daily Futures Transactions Accountfor Combined Management (hereinafter called “Customer under Combined Management”).

Article 25-3. Combined Management
25-3.1 An FX Daily Futures Trading Member may manage FX Exchange Margin andEquity Index Exchange Margin deposited by an FX Daily Futures Customer in an
integrated manner in accordance with these Regulations, Equity Index Margin Regulations,
the Brokering Terms and other conditions prescribed by the Exchange in order to make up
a shortfall of either one of the said margins.
25-3.2 The management provided in Article 25-3.1 above (hereinafter called the“Combined Management”) may be conducted only with the consent of a Customer under
Combined Management who has submitted an Agreement Concerning Establishment of
FX/Equity Index Daily Futures Transactions Account for Combined Management.

Article 25-4. Deposit of FX Exchange Margin under Combined Management
25-4.1 Notwithstanding Article 18.1 hereof, if the amount of FX Exchange Margin of a
Customer under Combined Management added by the Equity Index Excess Capacity
Amount (if such Equity Index Excess Capacity Amount is negative, it shall be deemed aszero) falls short of the FX Margin-Required Amount and thus the FX Exchange Margin
becomes deficient, a Trading Member Conducting Combined Management shall notify the
Customer under Combined Management of the amount of such shortfall. In this case, theCustomer under Combined Management shall place or deposit a sum not less than theamount of the shortfall, in the currency of Japanese Yen, with the Trading Member
Conducting Combined Management as FX Exchange Margin, not later than the time anddate designated by the Trading Member Conducting Combined Management, which dateshall fall before the second trading day following the trading day on which the shortfall
arises (any trading day that is a Japanese bank holiday shall be excluded for the purpose ofrecognition of the first and second trading days counted as aforesaid.
25-4.2 If all or part of the Equity Index Excess Capacity Amount is applied to the

FX Margin Regulations

25

shortfall of the FX Exchange Margin prescribed in Article 18 in accordance with Article
25-4.1 above, the amount so applied to the shortfall (up to the deposited Equity Index
Exchange Margin) shall be added to the deposited FX Exchange Margin and deducted fromthe deposited Equity Index Exchange Margin of the Customer under Combined
Management.
25-4.3 For the purpose of this Article 25-4, the“Equity Index Excess Capacity Amount”
means an amount determined by a Trading Member Conducting Combined Management
up to the amount after an adjustment of Fixed Equity Index variation as defined in Article
2(9) of Equity Index Margin Regulations to a deposited Equity Index Exchange Margin as
defined in Article 2(2) of Equity Index Margin Regulations (if Fixed Equity Index variation
is a positive number, the absolute value thereof shall be added and, if it is a negative
number, the absolute value thereof shall be deducted) added by a gain to be obtained by a
Customer under Combined Management or deducted by a loss to be incurred by such
Customer under Combined Management upon settlement of Equity Index Daily Futurestransactions, deducted by the absolute value of the difference between short positions andlong positions of the Equity Index Daily Futures transactions held by the Customer under
Combined Management multiplied by an Equity Index Margin reference amount calculated
for each type of Equity Index Daily Futures transaction.

Article 25-5. Deposit of Ordering Margin under Combined Management
25-5.1 Notwithstanding Article 19.1 hereof, with respect to an Ordering Margin that a
Trading Member Conducting Combined Management requires a Customer under
Combined Management to deposit, the aggregate amount of the FX Exchange Margin andthe Equity Index Excess Capacity Amount of the Customer under Combined Management
shall meet the amount required as an Ordering Margin.
25-5.2 If all or part of the Equity Index Excess Capacity Amount is applied to theOrdering Margin in accordance with Article 25-5.1 above, the amount so applied to theOrdering Margin (up to the deposited Equity Index Exchange Margin) shall be added to thedeposited FX Exchange Margin and deducted from the deposited Equity Index Exchange
Margin of the Customer under Combined Management.

Article 25-6. Drawing of FX Exchange Margin and Restriction under Combined

FX Margin Regulations

26

Management25-6.1 Notwithstanding the proviso to Article 9.1 and the proviso to Article 23.1, aTrading Member Conducting Combined Management may allow a Customer under
Combined Management to draw the FX Exchange Margin in an amount not exceeding thelessor of the amounts set forth in the following items:(1)

FX Exchange Margin deducted by the total of the following amounts:(a)

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

The absolute value of the Fixed FX variation or Unsettled FX variation,
as the case may be, if it is less than zero(2)

The amount provided in Article 25-6.1(1) above added by the Equity
Index Margin Amount and deducted by the total of the following amounts
calculated for each issue of Equity Index Daily Futures transactions:(a)Equity Index Margin reference amount of an issue of the relevant type of
Equity Index Daily Futures transactions multiplied by the absolute valueof the difference between the short positions and the long positions ofsuch issue held by the Customer under Combined Management; and(b)

The absolute value of the Fixed Equity Index variation or Unsettled
Equity Index variation, as the case may be, if it is less than zero25-6.2 FX Margin reference amount set forth in Article 25-6.1(1) (a) and Equity Index
Margin reference amount set forth in Article 25-6.1(2) (a) may be increased, within areasonable range, to an amount to be determined by a Trading Member Conducting
Combined Management.

Article 25-7. Control System
Management

FX Margin Regulationsfor

Loss-cut

27

Transactions

under

Combined

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

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

Article 26.
26.1

Duties upon Suspension from Transactions or Other Measures Taken

Where an FX Daily Futures Trading Member becomes or is deemed likely to

become insolvent and is thereby ordered any disciplinary measure pursuant to Articles 61
through 63 of the Trading Member Regulations, if the Exchange decides to cause the FX
Daily Futures Trading Member to transfer Unsettled Positions of its FX Daily Futures
Customers (except for FX Daily Futures offerors; this exception shall apply hereafter inthis Article 26) to another FX Daily Futures Trading Member or liquidate such Unsettled
Positions pursuant to Article 38.1 of Trading Member Regulations and Article 13.1 hereof,
the FX Daily Futures Trading Member shall immediately notify the FX Daily Futures
Customers of the fact of such imposition of the disciplinary measure. If an FX Daily
Futures Customer receiving the said notice is an FX Daily Futures intermediate broker, the
FX Daily Futures intermediate broker shall notify its FX Daily Futures offerors of theapplicable matters according to the said notice.
26.2
If, due to imposition of any disciplinary measure on an FX Daily Futures Trading
Member, the Exchange decides to cause the FX Daily Futures Trading Member to transfer
Unsettled Positions of its FX Daily Futures Customers to another FX Daily Futures Trading
Member or liquidate such Unsettled Positions pursuant to Article 38.1 of Trading Member
Regulations and Article 13.1 hereof, the FX Daily Futures Customer concerned shall takeeither of the following actions.
(1)

If the FX Daily Futures Customer desires position transfer to another FX

FX Margin Regulations

28

Daily Futures Trading Member, it shall: (i) request another FX Daily
Futures Trading Member to accept the position transfer and obtain its
consent by the time and date designated by the Exchange, (ii)communicate the position transfer to the Suspended Member and (iii)establish an FX Daily Futures Transactions Account specified in Article
6-2 of the Brokering Terms with the position transferee.
(2)

If the FX Daily Futures Customer desires liquidation of the Unsettled
Positions, it shall give an instruction on the liquidation to the Suspended
Member by the time and date designated by the Exchange.

26.3
If an FX Daily Futures Customer fails to take either of the actions set forth inItems (1) and (2) of Article 26.2 above by the time and date designated by the Exchange,
the Exchange shall liquidate the FX Daily Futures Customer’s Unsettled Positions for its
account in the manner designated by the Exchange.
26.4

Where the FX Daily Futures Customer is an FX Daily Futures intermediate broker,

if an FX Daily Futures Trading Member having accepted an order or orders for FX Daily
Futures transactions from the FX Daily Futures intermediate broker based on its FX Daily
Futures offeror’s request becomes a Suspended Member and the obligations assumed by
the FX Daily Futures intermediate broker to the Suspended Member with respect to the FX
Daily Futures contracts brokered by the FX Daily Futures intermediate broker become dueand payable, the provisions of Articles 26.2 and 26.3 above shall apply mutatis mutandis to
the FX Daily Futures offeror. In this case, the term “FX Daily Futures Customer” referred
to in Articles 26.2 and 26.3 above shall be replaced with “FX Daily Futures offeror”, and“Suspended Member” referred to in Article 26.2 hereof shall be replaced with “FX Daily
Futures intermediate broker”.

Article 27.

Treatment of FX Daily Futures Customer’s FX Margin for Transfer of
Unsettled Positions

27.1
When an FX Daily Futures customer’s Unsettled Positions are transferred toanother FX Daily Futures Trading Member pursuant to Article 26 above, the FX Margindeposited or placed by the FX Daily Futures customer shall be deemed to have been
deposited in the amount set forth in Article 20.1 hereof by the position transferee (if theposition transferee is an FX Daily Futures Non-Clearing Member, such position transferee

FX Margin Regulations

29

and its Designated Clearing Member; the same shall apply in Article 27.2 below) acting as
agent for the FX Daily Futures customer.
27.2
In the case set forth in Article 27.1 above, the FX Daily Futures customer’s claim
for refund of FX Margin shall, notwithstanding the provisions of Article 20.2 hereof, be
exercised to the Exchange through the position transferee acting as agent for the FX Daily
Futures customer.
27.3
If the amount of the FX Margin deemed to have been deposited by the FX Daily
Futures customer pursuant to Article 27.1 above falls short of the requisite amountdesignated by the position transferee, the FX Daily Futures customer shall deposit anamount not less than the shortfall as FX Exchange Margin with the position transferee.

Article 28.

Treatment of FX Daily Futures Offeror’s FX Margin for Transferred
Unsettled Positions

28.1
When an FX Daily Futures offeror’s Unsettled Positions are transferred to another
FX Daily Futures Trading Member pursuant to Article 26 hereof, the FX Margin depositedor placed by the FX Daily Futures offeror shall be deemed to have been deposited in theamount set forth in Article 21.1 hereof by the position transferee (if the position transferee
is an FX Daily Futures Non-Clearing Member, such position transferee and its Designated
Clearing Member; the same shall apply in Article 28.2 below) acting as agent for the FX
Daily Futures customer.
28.2
In the case set forth in Article 28.1 above, the FX Daily Futures offeror’s claim forrefund of FX Margin shall, notwithstanding the provisions of Article 21.2 hereof, be
exercised to the Exchange through the concerned FX Daily Futures intermediate broker andthe position transferee acting as agent for the FX Daily Futures offeror.
28.3
If the amount of the FX Margin deemed to have been deposited by the FX Daily
Futures offeror pursuant to Article 27.1 above falls short of the requisite amount designatedby the position transferee, the FX Daily Futures offeror shall deposit an amount not lessthan the shortfall as FX Exchange Margin with the position transferee.

Article 29.

Treatment of FX Daily Futures Customer’s FX Margin for Liquidated

FX Margin Regulations

30

Positions
When an FX Daily Futures customer’s Unsettled Positions are liquidated, the FX
Daily Futures customer shall be entitled to exercise the claim for refund of its FX Margindeposited with the Exchange through the Suspended Member acting as agent for the FX
Daily Futures customer, directly against the Exchange, to the extent of the amount of claim
for refund set forth in Article 20.1 hereof, notwithstanding the provisions of Article 20.2
hereof.

Article 30.

Treatment of FX Daily Futures Offeror’s FX Margin for Liquidated
Positions

When an FX Daily Futures offeror’s Unsettled Positions are liquidated, the FX
Daily Futures offeror shall be entitled to exercise the claim for refund of its FX Margindeposited with the Exchange through the concerned FX Daily Futures intermediate broker
and the Suspended Member acting as agent for the FX Daily Futures offeror, directlyagainst the Exchange, to the extent of the amount of claim for refund set forth in Article
21.1 hereof, notwithstanding the provisions of Article 21.2 hereof.

CHAPTER IV-II.
FX MARGIN FOR POSITION TRANSFER

Article 30-2. Treatment of FX Daily Futures Customer’s FX Margin for Position
Transfer30-2.1 When an FX Daily Futures customer’s Unsettled Positions are transferred toanother FX Daily Futures Trading Member by the position transfer (meaning the positiontransfer defined in Article 91 of the Clearing Regulations; the same shall apply
hereinbelow), the FX Margin deposited or placed by the FX Daily Futures customer shallbe deemed to have been deposited in the amount set forth in Article 20.1 hereof by the
position transferee (if the position transferee is an FX Daily Futures Non-Clearing Member,

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such position transferee and its Designated Clearing Member; the same shall apply in
Article 30-2.2 below) acting as agent for the FX Daily Futures customer.
30-2.2 In the case set forth in Article 30-2.1 above, the FX Daily Futures customer’s
claim for refund of FX Margin shall, notwithstanding the provisions of Article 20.2 hereof,
be exercised to the Exchange through the position transferee acting as agent for the FX
Daily Futures customer.
30-2.3 If the amount of the FX Margin deemed to have been deposited by the FX Daily
Futures customer pursuant to Article 30-2.1 above falls short of the requisite amountdesignated by the position transferee, the FX Daily Futures customer shall deposit anamount not less than the shortfall as FX Exchange Margin with the position transferee.

Article 30-3. Treatment of FX Daily Futures Offeror’s FX Margin for Position
Transfer30-3.1 When an FX Daily Futures offeror’s Unsettled Positions are transferred to another
FX Daily Futures Trading Member by the position transfer, the FX Margin deposited orplaced by the FX Daily Futures offeror shall be deemed to have been deposited in theamount set forth in Article 21.1 hereof by the position transferee (if the position transferee
is an FX Daily Futures Non-Clearing Member, such position transferee and its Designated
Clearing Member; the same shall apply in Article 30-3.2 below) acting as agent for the FX
Daily Futures customer.
30-3.2 In the case set forth in Article 30-3.1 above, the FX Daily Futures offeror’s claim
for refund of FX Margin shall, notwithstanding the provisions of Article 21.2 hereof, be
exercised to the Exchange through the concerned FX Daily Futures intermediate broker andthe position transferee acting as agent for the FX Daily Futures offeror.
30-3.3 If the amount of the FX Margin deemed to have been deposited by the FX Daily
Futures offeror pursuant to Article 30-3.1 above falls short of the requisite amountdesignated by the position transferee, the FX Daily Futures offeror shall deposit an amount
not less than the shortfall as FX Exchange Margin with the position transferee.

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CHAPTER V.
MISCELLANEOUS PROVISIONS

Article 31.

Change in Settlement Method, etc.

If the Exchange determines the conditions for postponement of the settlement
dates or the clearing terms and conditions for FX Daily Futures contracts in accordancewith Article 99 or 100 of the Clearing Regulations, the Exchange may change the deadline(time and date) for depositing of FX Exchange Margin under Articles 5 through 7 hereof
and take necessary measures incidental to such change.

Article 32.

Management of FX Exchange Margin

32.1
When the Exchange accepts deposit of FX Exchange Margin in cash, theExchange shall manage the same in the manners prescribed by applicable laws andordinances.
32.2
With respect to an FX Exchange Margin deposited by any FX Daily Futures
Trading Member or its Customer, no interest or other consideration shall be payable by the
Exchange.

SUPPLEMENTARY PROVISIONS
The amended Regulations shall take effect as from November 30, 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 June 26, 2017.

SUPPLEMENTARY PROVISIONS
The amended Regulations shall take effect as from July 3, 2017.

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

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

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