[English Translation]

SPECIAL PROVISIONS FOR TRADING REGULATIONS AND
BROKERING TERMS FOR OPTIONSTOKYO FINANCIAL EXCHANGE INC.

(This is an English translation of the Special Provisions for Trading Regulations andBrokering Terms for Options, which original has been prepared in the Japanese language
only. The Japanese language text hereof shall govern for all purposes and in all respects.
Accordingly, all questions that may arise within or without courts of law in regard to themeaning of the words, provisions and stipulations of these Special Provisions shall bedecided 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 2.
Definitions ............................................................................................... 1
CHAPTER II.

SPECIAL PROVISIONS FOR TRADING REGULATIONS ................... 5

Section 1. Object of Trading and Contract Months, etc. ................................................. 5
Article 3.
Object of Trading ..................................................................................... 5
Article 4.
Contract Month ........................................................................................ 6
Article 5.
Exercise Price .......................................................................................... 7
Section 2.

Market Trading Period and Method of Execution ......................................... 8

Section 2.1 General Provisions ......................................................................................... 8
Article 6.
Market Trading Period, etc. ..................................................................... 8
Article 6-2. Exchange Holiday, etc. ............................................................................ 9
Article 6-3. Business Day ......................................................................................... 10
Article 6-4. Trading Day ........................................................................................... 10
Article 6-5. Notice of Temporary Suspension and Off-hour Matching .................... 10
Article 7.
Auction Method ..................................................................................... 11
Article 7-2. Precedence of Bids and Offers matched in accordance with
Principle of Price/Time Priority ................................................................................... 11
Article 8.
Individual Auction ................................................................................. 12
Article 9.
Bids and Offers ...................................................................................... 14
Article 10. Posting of Contract Price ....................................................................... 16
Article 10-2. Notice, etc. of Contents Inputted for Bids and Offers ........................... 16
Article 11. Matching of Bid and Offer .................................................................... 16
Article 12. Securities, etc. Clearing-Brokering Contract ......................................... 17
Article 13. Notice of Execution of Option Contract ................................................ 17
Article 14. Option Contract for Error Trade Correction .......................................... 17
Section 2.2 Block Trade .................................................................................................. 18
Article 14-5. Block Trade ........................................................................................... 18

Special Provisions for Options
Table of Contents1Article 14-6. Method of Block Trade .......................................................................... 18
Article 14-7. Time for Application for Block Trade ................................................... 19
Article 14-8. Execution of Three-month Euroyen Futures Option Contract by
Block Trade ............................................................................................................... 19
Article 14-9. Publication of Contract Price for Block Trade ...................................... 20
Section 3 (Deleted) ...................................................................................................... 20
Article 15(Deleted) ................................................................................................ 20
Section 4. Give-up ........................................................................................................ 20
Article 15-2. Discharge and Creation of Option Contract and Discharge andGeneration, etc. of Contractual Status by Exchange, Executing Member andCarrying Member in Relation to Give-up .................................................................... 20
Article 15-2-2.Give-up Registration ............................................................................ 21
Article 15-3. Give-up Notification .............................................................................. 21
Article 15-4. Take-up Notification, etc. ...................................................................... 22
Article 15-5. Treatment of Option Contract for Give-up ............................................ 22
Article 15-6. Particulars for Give-up .......................................................................... 23
Section 5. Payment or Receipt of Option Premium ...................................................... 23
Article 16. Payment or Receipt of Option Premium................................................ 23
Articles 17 through 19 (Deleted) .................................................................................. 23
Section 6. Offsetting Transactions ................................................................................ 24
Article 20. Offsetting Transactions .......................................................................... 24
Articles 21 and 22 (Deleted)......................................................................................... 24
Section 7. Option Exercise............................................................................................ 24
Article 23. Option Exercise ..................................................................................... 24
Articles 24 through 27 (Deleted) .................................................................................. 24
Section 8. Daily Settlement Price ................................................................................. 24
Article 28. Determination of Daily Settlement Price .............................................. 24
Section 9. Restrictions on Option Transactions ............................................................ 25
Article 29. Order Limit ............................................................................................ 25
Article 30.

Position Limit ........................................................................................ 25

Special Provisions for Options
Table of Contents2Article 31.
Article 32.

Precedence of Customer's Orders .......................................................... 25
Prohibition of Manipulation .................................................................. 26

Section 10. Miscellaneous Provisions ............................................................................ 26
Article 33. (Deleted) ................................................................................................ 26
Article 34. Clearing Commission ............................................................................ 26
Article 35. Collection of Communication and Other Expenses .............................. 26
Article 36. Dispatch of Notice on Option Contract ................................................. 27
Article 37. Notification of Reassignment to Customers .......................................... 27
CHAPTER III. SPECIAL PROVISIONS FOR FUTURES CONTRACT BROKERINGTERMS ...................................................................................................... 28
Section 1. Acceptance of Orders for Option Contracts................................................. 28
Article 38. Contents of Instruction upon Ordering .................................................. 28
Article 39. Offsetting Instruction ............................................................................. 30
Section 2.

Give-up ........................................................................................................ 31

Article 39-2. Ordering for Option Contracts for Give-up ........................................... 31
Article 39-3. Contents of Instruction upon Ordering for Option Contracts for
Give-up............................................................................................................... 31
Article 39-4. Offsetting Instruction for Give-up ......................................................... 32
Article 39-5. Payment or Receipt of Option Premium for Give-up ............................ 32
Section 3. Payment or Receipt of Option Premium ...................................................... 33
Article 40. Payment or Receipt of Option Premium................................................ 33
Article 41. Amount of Option Premium .................................................................. 33
Section 4. Customer’s Option Exercise ........................................................................ 34
Article 42. Instruction of Option Exercise ............................................................... 34
Article 43. Automatic Exercise ............................................................................... 34
Section 5. Measures for Customer’s Default in Settlement .......................................... 34
Article 44. Measures for Customer’s Default in Settlement .................................... 34
Section 6.

Brokerage Commission, etc. ........................................................................ 35

Article 45.

Brokerage Commission ......................................................................... 35

Special Provisions for Options
Table of Contents3Article 46.
Article 47.

(Deleted) ................................................................................................ 36
Collection of Communication and Other Expenses .............................. 36

SUPPLEMENTARY PROVISIONS ................................................................................... 36

Special Provisions for Options
Table of Contents

4CHAPTER I.
GENERAL PROVISIONS

Article 1.

Purpose

1.1
These Special Provisions set forth the special provisions supplementing the
Trading Regulations and the Brokering Terms in respect of Three-month Euroyen futures
option transactions, Three-month TONA futures option transactions and settlement
thereof and agreements concerning acceptance of orders for Three-month Euroyen
futures option transactions and Three-month TONA futures option transactions.
1.2
Any matters not set forth in these Special Provisions shall be governed by the
Trading Regulations, the Clearing Regulations and the Brokering Terms.
1.3
Amendments to Section 1 of Chapter II shall be effected by obtaining theconsent of the Self-regulatory Committee.

Article 2.

Definitions

The terms used herein shall have the meanings ascribed to them as below,
except where these terms are used with reference to the financial indices, etc. set forth in
the respective Items of Article 3 of the Trading Regulations.
(1)

An “option on Three-month Euroyen futures” means the right to enable
the grantee thereof to execute a Three-month Euroyen futures contract
between the granter and grantee upon declaration of the grantee’s
intention to do so.

(1)-2

An “option on Three-month TONA futures” means the right to enable
the grantee thereof to execute a Three-month TONA futures contract
between the granter and grantee upon declaration of the grantee’s
intention to do so.

Special Provisions for Options1(2)A “Three-month Euroyen futures option contract” means a market
derivatives contract wherein one party agrees to grant the other party
an option on Three-month Euroyen futures and the other party agrees
to pay the consideration therefor.

(2)-2

A “Three-month TONA futures option contract” means a market
derivatives contract wherein one party agrees to grant the other party
an option on Three-month TONA futures and the other party agrees to
pay the consideration therefor.

(3)“Option exercise” (or merely referred to as “exercise“) means toexercise an option on Three-month Euroyen futures or an option on
Three-month TONA futures.

(4)

A “sale contract” means, with respect to a Three-month Euroyen
futures option contract, a Three-month Euroyen futures option contract
viewed from the standpoint of a party who grants an option on
Three-month Euroyen futures and receives the consideration therefor,
and, with respect to a Three-month TONA futures option contract, aThree-month TONA futures option contract viewed from the standpointof a party who grants an option on Three-month TONA futures andreceives the consideration therefor.

(4)-2

A “purchase contract” means, with respect to a Three-month Euroyen
futures option contract, a Three-month Euroyen futures option contract
viewed from the standpoint of a party who obtains an option on
Three-month Euroyen futures and pays the consideration therefor, and,with respect to a Three-month TONA futures option contract, aThree-month TONA futures option contract viewed from the standpointof a party who obtains an option on Three-month TONA futures andpays the consideration therefor.

(5)

A “price” means, with respect to a Three-month Euroyen futures option
contract, a figure to be used as the basis for calculation of theconsideration of an option on Three-month Euroyen futures for theconcerned Three-month Euroyen futures option contract, and with

Special Provisions for Options2

respect to a Three-month TONA futures option contract, a figure to be
used as the basis for calculation of the consideration of an option on
Three-month TONA futures for the concerned Three-month TONA
futures option contract.
(6)

A “price range” means the range of a price.

(7)

A “contract price” or “traded price” means a figure executed to be usedas the basis for calculation of the consideration of an option on
Three-month Euroyen futures or an option on Three-month TONA
futures.

(8)“Bid and (or) offer” means a declaration by a party of the upper orlower limit of the price at which the party desires to execute a
Three-month Euroyen futures option contract or a Three-month TONA
futures option contract.

(9)

An “offer” means a declaration by a party of the lower limit of theprice or the strategy price at which the party desires to execute a sale
contract as a seller, and a “bid” means a declaration by a party of theupper limit of the price or the strategy price at which the party desires
to execute a purchase contract as a purchaser.

(10)

A “short position” means an unsettled sale contract executed with the
Exchange as the counterparty in accordance with Article 22(2) or 26 of
the Clearing Regulations for which the option exercisable period has
not yet expired.

(11)

A “long position” means an unsettled purchase contract executed with
the Exchange as the counterparty in accordance with Article 22(2) or
26 of the Clearing Regulations for which the option exercisable period
has not yet expired.

(12)

An “underlying futures contract” means, with respect to a Three-month
Euroyen futures option contract, a Three-month Euroyen futurescontract with a specified contract month to be executed as a result of an
option exercise, and with respect to a Three-month TONA futures

Special Provisions for Options
3

option contract, a Three-month TONA futures contract with a specified
contract month to be executed as a result of an option exercise.
(13)

An “exercise price” means a figure predetermined by the Exchange as
the traded figure of a Three-month Euroyen futures contract or aThree-month TONA futures contract to be executed as a result of an
option exercise.

(14)“Series” means, with respect to a Three-month Euroyen futures option
contract, certain put options on Three-month Euroyen futures, or
certain call options on Three-month Euroyen futures, set forth in
Article 3.1 hereof, having the same last trading day and the same
exercise price, and with respect to a Three-month TONA futures option
contract, certain put options on Three-month TONA futures, or certain
call options on Three-month TONA futures, set forth in Article 3.2
hereof, having the same last trading day and the same exercise price.

(15)“Exchange Holiday” means any of the days as defined in the respective
Items in Article 6-2 hereof.

(16)

A “business day” means a day as defined in Article 6-3 hereof.

(17)

A “trading day” means a day as defined in Article 6-4 hereof.

(18)“Matching” means matching of a bid and an offer on an individual
auction basis in accordance with Article 8 hereof.

(19)

A “pre-open period” means a period during which bids and offers arereceived but no matching is conducted, as set forth in Article 6.1(1)hereof.

(20)“Market Trading Period” means a period for receiving bids and offers
as defined in Item (a) or (b) of Article 6.1(2) hereof.

(21)“Trading Member” means an Interest Rate Futures Trading Member
defined in Article 2.10 of the Trading Member Regulations.

Special Provisions for Options
4

(22)

“Executing Member” means a Trading Member who makes a give-up
notification set forth in Article 15-3.1 hereof with respect to a
Three-month Euroyen futures option contract or a Three-month TONA
futures option contract for which a give-up is intended.

(23)“Carrying Member” means a Trading Member who makes a take-up
notification set forth in any of the Items of Article 15-4.1 hereof withrespect to a Three-month Euroyen futures option contract or aThree-month TONA futures option contract for which a give-up isintended.

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

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

(26)“On-Open modifier” means the modifier applied to the On-Open orderspecified in Article 8.4 hereof (as defined in Article 7-2(3) hereof).

CHAPTER II.
SPECIAL PROVISIONS FOR TRADING REGULATIONS

Section 1.

Article 3.

Object of Trading and Contract Months, etc.

Object of Trading

3.1
The object of Three-month Euroyen futures option contracts traded on the
Exchange Market shall be specified for each trading unit as follows.
(1)

An option on Three-month Euroyen futures to enable the grantee

Special Provisions for Options
5thereof to execute one trading unit of a sale contract for the underlying
futures contract with its traded figure equal to the exercise price(hereinafter called a "put option on Three-month Euroyen futures").
(2)

An option on Three-month Euroyen futures to enable the grantee
thereof to execute one trading unit of a purchase contract for theunderlying futures contract with its traded figure equal to the exercise
price (hereinafter called a "call option on Three-month Euroyen
futures").

3.2
The object of Three-month TONA futures option contracts traded on the
Exchange Market shall be specified for each trading unit as follows.
(1)

An option on Three-month TONA futures to enable the grantee thereof
to execute one trading unit of a sale contract for the underlying futurescontract with its traded figure equal to the exercise price (hereinafter
called a "put option on Three-month TONA futures").

(2)

An option on Three-month TONA futures to enable the grantee thereof
to execute one trading unit of a purchase contract for the underlying
futures contract with its traded figure equal to the exercise price(hereinafter called a "call option on Three-month TONA futures").

Article 4.
4.1

Contract Month

Three-month Euroyen futures option contracts and Three-month TONA futures

option contracts shall be classified according to their contract months, the last trading
days of which shall correspond to those of their respective underlying futures contracts.
4.2
Three-month Euroyen futures option contracts and Three-month TONA futures
option contracts shall be available for trading at any time for five (5) contract months,
and the trading period for each contract month shall be fifteen (15) months.
4.3
The first trading day for a Three-month Euroyen futures option contract with a
newly listed contract month shall be the trading day immediately following the last
trading day for the then first expiring contract month, and such new contract month shallSpecial Provisions for Options
6become available for trading from the opening of its first trading day’s day session.
4.4
Notwithstanding the provisions of Articles 4.1 through 4.3 above, the Exchange
may change the trading period for any contract month of Three-month Euroyen futures
option contracts and Three-month TONA futures option contracts, the number of theircontract months available for trading, and their last trading days and first trading days
when the Exchange deems it necessary in order to maintain the regularity ofThree-month Euroyen futures option transactions and Three-month TONA futures option
transactions on the Exchange Market and protect the public or Customers interests.

Article 5.

Exercise Price

5.1
Three-month Euroyen futures option contracts shall be traded according to theclassification corresponding to each of the exercise prices established for the respective
contract months for put options on Three-month Euroyen futures and call options on
Three-month Euroyen futures, and Three-month TONA futures option contracts shall be
traded according to the classification corresponding to each of the exercise prices
established for the respective contract months for put options on Three-month TONA
futures and call options on Three-month TONA futures.
5.2
On and after business day on which the day session of the first trading day foreach contract month falls, the Exchange shall calculate each business day’s base figure
for each such contract month to be used to establish its exercise prices (hereinafter called
the "listing basis figure").
5.3

A listing basis figure referred to in Article 5.2 above for each business day shallbe the Official Closing Price for the concerned contract month of the underlying futurescontract calculated by the Exchange on the previous business day; provided, however,that the Exchange may from time to time determine a figure deemed appropriate by the
Exchange as the listing basis figure, if no Official Closing Price is available for theunderlying futures contract with the concerned contract month on the said previous
business day, or if the applicable Official Closing Price is deemed inappropriate by the
Exchange.
5.4

On the business day on which the day session of the first trading day for eachcontract month falls, the Exchange shall calculate a specific figure for each contract

Special Provisions for Options
7month, based on the said business day’s listing basis figure for the respective contract
month, in accordance with the conditions separately prescribed by the Exchange(hereinafter called the “option criterion price”) and set the next six (6) upper figures
above the option criterion price and the next six (6) lower figures below the option
criterion price at intervals of 0.125 respectively, resulting in total thirteen (13) figures.
These thirteen (13) figures shall be listed as the exercise prices for the concerned
contract month.
5.5

The Exchange shall calculate each business day’s option criterion price for eachcontract month, based on the said business day’s listing basis figure for the respective
contract month, in accordance with the conditions separately prescribed by the Exchange
and set the next six (6) upper figures above the option criterion price and the next six (6)lower figures below the option criterion price at intervals of 0.125 respectively, resulting
in total thirteen (13) figures. If these thirteen (13) figures include any figure that has
not yet been listed, such figure shall be additionally listed as the exercise price.
5.6
Notwithstanding the provisions of Articles 5.4 and 5.5 above, the Exchange
may change the number of the then listed exercise prices or additionally list new exercise
prices, either for all or some of the contract months, when the Exchange deems
necessary to do so.

Section 2.

Market Trading Period and Method of Execution

Section 2.1 General Provisions

Article 6.

Market Trading Period, etc.

6.1
The pre-open period and the Market Trading Period for Three-month Euroyen
futures option transactions and Three-month TONA futures option transactions on the
Exchange shall be as set forth below; provided, however, that the last trading day’s day
session for each contract month shall be as set forth in Article 6.2 below.
(1)Pre-open period: from 8:30 a.m. to 8:45 a.m.

Special Provisions for Options8

(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 from 11:30
a.m. to 0:30 p.m.

(b)

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

6.2
The last trading day’s day session with respect to each contract month shall befrom 8:45 a.m. to 11:00 a.m. for Three-month Euroyen futures option contracts and from
8:45 a.m. to 9:30 a.m. for Three-month TONA futures option contracts.
6.3
Notwithstanding the provisions of Articles 6.1 and 6.2 above, the Exchange
may accept a cancellation requested by a Trading Member of its bids or offers inaccordance with the conditions separately prescribed by the Exchange.
6.4

The Exchange may temporarily change the pre-open period and the Market

Trading Period set forth in the respective Item of Article 6.1 above when the Exchange
deems necessary to do so. In this case, the Exchange shall notify the Trading Members
to that effect.

Article 6-2.

Exchange Holiday, etc.

6-2.1 The Exchange Holidays of the financial instruments market for Three-month
Euroyen futures option transactions and Three-month TONA futures option transactions
on the Exchange 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

Special Provisions for Options
9

immediately preceding calendar day and immediately subsequentcalendar day are national holidays(5)

Saturdays(6)

January 2, January 3 and December 31

6-2.2
so.

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

6-2.3

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

Article 6-3.

Business Day

A business day of the financial instruments market for Three-month Euroyen
futures option contracts and Three-month TONA futures option contracts on the
Exchange shall be a day other than the Exchange Holidays and ad hoc holidays set forthin Article 6-2 hereof..

Article 6-4.

Trading Day

A trading day for Three-month Euroyen futures option transactions andThree-month TONA futures option transactions on the Exchange shall be a period
commencing on the opening of the evening session that starts after the day session on thebusiness day immediately preceding a specific business day and ending on the close of
the day session that starts on such specific business day.

Article 6-5.

Notice of Temporary Suspension and Off-hour Matching

When the Exchange determines to have an ad hoc holiday or a temporary
suspension of matching for Three-month Euroyen futures option transactions andThree-month TONA futures option transactions, the Exchange shall give an advancenotice 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 theSpecial Provisions for Options
10

Trading Members two (2) business days before such date of off-hour matching.

Article 7.

Auction Method

7.1
Three-month Euroyen futures option transactions and Three-month TONA
futures option transactions on the Exchange Market shall be based on the auction method
in principle.
7.2
Matching under the auction method at the opening of day session shall be
conducted in accordance with the principle of price/time priority.
7.3
Matching under the auction method during day session shall be conducted inaccordance with the principle of price/time priority.

Article 7-2.

Precedence of Bids and Offers matched in accordance with
Principle of 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 and offer submitted without designating a price limit (hereinafter
called the “market order”) shall take precedence over a limit order withrespect to the price priority.

(3)

Notwithstanding the provision of Article 7-2(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 8.3 below, and an earlier On-Open order shall takeSpecial Provisions for Options
11

precedence over any later On-Open order.

Article 8.

Individual Auction

8.1
With respect to Three-month Euroyen futures option transactions andThree-month TONA futures option transactions based on the auction method in
principle, their contracts shall be executed on an individual auction basis.
8.2
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 Three-month Euroyen futures option contract or a Three-month TONA
futures option contract shall be executed between the corresponding bid and offer, at thecontract 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 is determined in themanner set forth in Item (1) or (2) below.

8.3

(1)

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

In the event that all or a part of Three-month Euroyen futures option
transactions or Three-month TONA futures option transactions havebeen suspended by the Exchange in accordance with the provisions ofArticle 14 of the Trading Regulations, the contract price at the time
when these transactions are resumed

When the contract price is determined in the manner set forth in Article 8.2(1)or 8.2(2) above, a Three-month Euroyen futures option contract or a Three-month TONA
futures option contract shall be executed at the contract price which 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 Three-month Euroyen futures option contract or aThree-month TONA futures option contract shall be executed between

Special Provisions for Options
12

the corresponding limit orders at the contract price set forth in (a) or (b)below, subject to the price priority set forth in Article 7-2(1) above:(a)

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

The volume of the offer accumulation at a certain price is equal
to or larger than the volume of the bid accumulation at a pricewhich is higher than the said price by the minimum pricefluctuation of the Three-month Euroyen futures option contract
or the Three-month TONA futures option contract that is
specified for the respective financial indices, etc.; andb.

The volume of the bid accumulation at a certain price is equal
to or larger than the volume of the offer accumulation at a pricewhich is lower than the said price by the minimum pricefluctuation of the Three-month Euroyen futures option contract
or the Three-month TONA futures option contract that is
specified for the respective financial indices, etc.

(b)

(2)

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

If there is a price which is same as the reference priceseparately established by the Exchange: such priceb.

If there is no price which is same as the reference priceseparately 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 isSpecial Provisions for Options
13

also a contract price that has arisen from a matching among limit orders
pursuant to Article 8.3(1) above (hereinafter called the “uncrossing
price”), a Three-month Euroyen futures option contract or Three-month
TONA futures option contract shall be executed between thecorresponding On-Open orders at the said contract price, subject to theprice priority set forth in Article 7-2(3) above.
(3)

Matching among limit orders (limited only to those that have not been
executed under Article 8.3(1) and those which are On-Open orders
under Article 8.3(2) above but are treated as limit orders in accordancewith Article 8.4 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 Three-month Euroyen futures option contract or Three-month
TONA futures option contract shall be executed between thecorresponding limit orders at the uncrossing price, subject to the pricepriority set forth in Article 7-2 (1) above.

8.4

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

Where there is any uncrossing price:
A Three-month Euroyen futures option contract or Three-month TONA
futures option contract shall be executed between the corresponding
On-Open orders at the uncrossing price in accordance with Article
8.3(2) above.
If there is any On-Open order which remains
unexecuted, such On-Open order shall be treated after the end ofmatching as a limit order submitted at the uncrossing price.

(2)

Article 9.
9.1

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 8.3(1) above.

Bids and Offers

In order for a Trading Member to execute Three-month Euroyen futures option

Special Provisions for Options
14

contracts or Three-month TONA futures option contracts by the auction method, bids oroffers shall be submitted through the Member’s terminal devices as defined in Article 48of the Trading Member Regulations. In this case, the Trading Member shall designate
whether the bid or offer is for its house account or based on a Customer’s order (suchaccount classification being hereinafter expressed as “whether for a customer account orfor a house account”) for the Exchange’s recognition.
9.2
In order to execute a Three-month Euroyen futures option contract orThree-month TONA futures option contract, the bids or offers referred to in Article 9.1
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.
9.3
Bids and offers for Three-month Euroyen futures option contracts shall bequoted up to the third decimal place (indicated by an integral multiple of 5/1000), andbids and offers for Three-month TONA futures option contracts shall be quoted up to thethird decimal place (indicated by an integral multiple of 1/1000).
9.4

The minimum price fluctuation of bids and offers for Three-month Euroyen

futures option contracts shall be 0.005, and the minimum price fluctuation of bids andoffers for Three-month TONA futures option contracts shall be 0.001.
9.5

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; or(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.

9.6
When a Trading Member submits the bids and/or offers, it is not required toindicate whether the Three-month Euroyen futures option contracts or the Three-month
TONA futures option contracts, which it desires to execute, is a new sale contract, a newpurchase contract or offsetting transactions.

Special Provisions for Options
15

9.7
In addition to these Special Provisions, any matters necessary to stipulate inconnection with bids and offers for Three-month Euroyen futures option contracts or theThree-month TONA futures option contracts under the auction method shall beseparately prescribed by the Exchange.

Article 10.

Posting of Contract Price

If a Three-month Euroyen futures option contract or a Three-month TONA
futures option contract has been executed (except for the contracts executed inaccordance with Article 14 hereof), the Exchange shall post the contract price thereof in
the Exchange Market.

Article 10-2.

Notice, etc. of Contents Inputted for Bids and Offers

10-2.1 When any matter relating to a bid or offer has been inputted in accordance with
Article 9.2 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.
10-2.2 The Trading Member shall promptly confirm the inputted contents
communicated under Article 10-2.1 above.
10-2.3 Any correction to the inputted contents communicated under Article 10-2.1
above shall be made in accordance with the conditions separately prescribed by the
Exchange.

Article 11.

Matching of Bid and Offer

When a bid and an offer satisfy the conditions for execution of a Three-month
Euroyen futures option contract or a Three-month TONA futures option contract set forthin Article 8 hereof, the bid and the offer shall be matched by the Trading System inaccordance with the price and time priority set forth herein.

Special Provisions for Options
16

Article 12.

Securities, etc. Clearing-Brokering Contract

When a bid or an offer submitted by a Non-Clearing Member satisfies theconditions for execution of a Three-month Euroyen futures option contract or aThree-month TONA futures option contract set forth in Article 8, 14 or 14-8 hereof, such
Non-Clearing Member’s Three-month Euroyen futures option contract or Three-month
TONA futures option contract (hereinafter called the “Securities, etc. Clearing-Brokering
Contract”) shall be executed in the name of the Non-Clearing Member’s Designated
Clearing Member in accordance with Article 25.4 of the Trading Member Regulations.

Article 13.

Notice of Execution of Option Contract

13.1
Upon execution of a Three-month Euroyen futures option contract or aThree-month TONA futures option contract, the Exchange shall immediately
communicate the details thereof to the Trading Member who has submitted the bid oroffer for such contract.
13.2
The Trading Member shall promptly confirm the details of the Three-month
Euroyen futures option contract or the Three-month TONA futures option contractcommunicated under Article 13.1 above.
13.3
With respect to a Securities, etc. Clearing-Brokering Contract, the Exchange
shall, on behalf of the Non-Clearing Member who has submitted the bid or 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 13.1 above, after the close of the day session of the
trading day on which such Securities, etc. Clearing-Brokering Contract is executed.

Article 14.

Option Contract for Error Trade Correction

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

Special Provisions for Options
17

Three-month Euroyen futures option contract or Three-month TONA futures option
contract so approved, which contract will be executed at the contract price that will bedeemed appropriate by the Exchange, not based on the auction method, but with the said
Trading Member itself acting as the counterparty, and at its own bid or offer.

Section 2.2 Block Trade

Article 14-5.

Block Trade

14-5.1 In these Special Provisions, a “block trade” is a trade whereby thecorresponding offer and bid for a specific contract month will be simultaneously
submitted to the Exchange, at the same price, in the trading volume not less than thevolume designated by the Exchange and not based on the auction method, and then thesale contract and the purchase contract for a Three-month Euroyen futures option
contract or a Three-month TONA futures option contract will be executed at the price so
submitted.

Article 14-6.

Method of Block Trade

14-6.1 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 series for which the Trading Members will not be allowed tomake a block trade.
14-6.2 In the application set forth in Article 14-6.1 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.
14-6.3 The application set forth in Article 14-6.1 above shall remain valid until the
Exchange gives a notice of approval or disapproval set forth in Article 14-8 hereof to the
Trading Member who has made the said application (hereinafter called the “block tradeapplicant”).

Special Provisions for Options
18

Article 14-7.

Time for Application for Block Trade

14-7.1 The bids and offers for block trade may be submitted during any of the sessions
or periods set forth in Articles 6.1, 6.2 and 6.4, excluding the last 15 minutes of eachsuch session or period, and in any event excluding the period from 11:30 a.m. to 0:30
p.m.
14-7.2 The Exchange may temporarily change the time for application for block trade
set forth in Article 14-7.1 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.

Article 14-8.

Execution of Three-month Euroyen Futures Option Contract by
Block Trade

14-8.1 The Three-month Euroyen futures option contract or the Three-month TONA
futures option contract intended to be executed by a block trade shall be deemed
executed at the price of the bid and offer submitted by the block trade applicant when the
Exchange has approved the execution of the Three-month Euroyen futures option
contract or the Three-month TONA futures option contract between the bid and offer
submitted at the application for the intended block trade.
14-8.2 Notwithstanding the provisions of Article 14-8.1 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
14-6.2 hereof in order to execute the Three-month Euroyen futures option contract or theThree-month TONA futures option contract with such block trade counterparty, suchThree-month Euroyen futures option contract or Three-month TONA futures option
contract shall be deemed to have been executed as between the block trade applicant andthe same block trade counterparty, retroactively as of 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 theapproval by the Exchange.
14-8.3 With respect to the provisions of Article 14-8.2 above, if the block trade
counterparty has failed to give a notice of its approval without delay or given a notice ofSpecial Provisions for Options
19

its disapproval, the designation of the block trade counterparty by the block tradeapplicant shall be deemed not to exist and the provisions of Article 14-8.1 above shallapply.

Article 14-9.

Publication of Contract Price for Block Trade

When a Three-month Euroyen futures option contract or a Three-month TONA
futures option contract has been executed by a block trade, the Exchange shall publish
the contract price therefor in accordance with the procedures prescribed by the
Exchange.

Section 3(Deleted)

Article 15

Section 4.

(Deleted)Give-up

Article 15-2.

Discharge and Creation of Option Contract and Discharge andGeneration, etc. of Contractual Status by Exchange, Executing
Member and Carrying Member in Relation to Give-up

If a Three-month Euroyen futures option contract or a Three-month TONA
futures option 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 shall apply to the term
“Executing Member” hereafter in this Article 15-2, except for reference to “for theaccount of the Executing Member” and equivalent expressions), for the Executing
Member’s own account, and with the Exchange acting as the counterparty in accordancewith the Clearing Regulations, such Three-month Euroyen futures option contract shallbe discharged on condition that the Exchange shall have received a take-up notification

Special Provisions for Options
20

set forth in Article 15-4.1(1) hereof from a Carrying Member, and concurrently withsuch discharge, a new Three-month Euroyen futures option contract or a new
Three-month TONA futures option contract of the same terms and conditions as those of
the discharged Three-month Euroyen futures option contract or Three-month TONA
futures option contract 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 apply to the term “Carrying Member” hereafter in this
Article 15-2, except for reference to “for the account of the Carrying Member” andequivalent expressions) in the Carrying Member’s name and for its own account.

Article 15-2-2. Give-up Registration
15-2-2.1 When an Executing Member and a Carrying Member intend to execute a
Three-month Euroyen futures option contract or a Three-month TONA futures option
contract for give-up, those Trading Members shall register such give-up arrangementwith the Exchange beforehand through the Member’s terminal devices possessed bythem.
15-2-2.2 A Non-Clearing Member who intends to make the registration set forth in
Article 15-2-2.1 above shall obtain its Designated Clearing Member’s consent.
15-2-2.3 Notwithstanding the provisions of Article 15-2-2.1 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 15-2-2.1 above on its behalf.

Article 15-3.

Give-up Notification

15-3.1 If an Executing Member has executed a Three-month Euroyen futures option
contract or a Three-month TONA futures option contract for give-up at its bid or offer,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

Special Provisions for Options
21

notification on its behalf..
15-3.2 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.
15-3.3 A Trading Member shall not provide the Exchange with a give-up notification
with respect to any Three-month Euroyen futures option contract or Three-month TONA
futures option contract that has been created by give-up.

Article 15-4.

Take-up Notification, etc.

15-4.1 If a Carrying Member has received a notice given under Article 15-3.2 above,
such Carrying Member shall promptly notify the Exchange in either of the following
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 theThree-month Euroyen futures option contracts or the Three-month
TONA futures option contracts intended in the notice, the notificationof acceptance (hereinafter called “take-up notification”) shall be
provided.

(2)

If the Carrying Member declines to undertake clearing of theThree-month Euroyen futures option contracts or the Three-month
TONA futures option contracts intended in the notice, the notificationof declination shall be provided.

15-4.2 If the Exchange receives a take-up notification given under Article 15-4.1
above, the Exchange shall communicate the contents thereof to the Executing Member
who has made such give-up notification.

Article 15-5.

Treatment of Option Contract for Give-up

Special Provisions for Options
22

In Article 13.3 hereof and Sections 5 through 7 and 10 of Chapter II hereof(except for Article 36 hereof), the Three-month Euroyen futures option contract or theThree-month TONA futures option contract created by give-up shall be deemed as theThree-month Euroyen futures option contract or the Three-month TONA futures option
contract executed 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 word “Three-month Euroyen futures option contract orThree-month TONA futures option contract” appearing immediately before thisparenthesized phrase shall be read as “Securities, etc. Clearing-Brokering Contract”) on
the trading day on which the Executing Member has executed the Three-month Euroyen
futures option contract or the Three-month TONA futures option contract for give-up,
and the Three-month Euroyen futures option contract or the Three-month TONA futures
option contract discharged by give-up shall be deemed to have been discharged on thesame trading day.

Article 15-6.

Particulars for Give-up

In addition to these Special Provisions, any matters necessary to stipulate inconnection with a give-up notification period and the procedure for the correction to thecontents thereof shall be separately prescribed by the Exchange.

Section 5.

Article 16.

Payment or Receipt of Option Premium

Payment or Receipt of Option Premium

Payments and receipts of option premiums for Three-month Euroyen futures
option contracts shall be governed by Articles 77 through 80 of the Clearing Regulations
and payments and receipts of option premiums for Three-month TONA futures option
contracts shall be governed by Articles 90-33 through 90-36 of the Clearing Regulations.

Articles 17 through 19(Deleted)Special Provisions for Options
23

Section 6.

Article 20.

Offsetting Transactions

Offsetting Transactions

Handling of offsetting transactions for Three-month Euroyen futures option
contracts shall be governed by Articles 81 through 83 of the Clearing Regulations andfor Three-month TONA futures option contracts shall be governed by Articles 90-37
through 90-39 of the Clearing Regulations.

Articles 21 and 22(Deleted)

Section 7. Option Exercise

Article 23.

Option Exercise

Matters concerning option exercise for Three-month Euroyen futures option
contracts shall be governed by Articles 84 through 89 of the Clearing Regulations, andmatters concerning option exercise for Three-month TONA futures option contracts shallbe governed by Articles 90-40 through 90-45 of the Clearing Regulations.

Articles 24 through 27

Section 8.

Article 28.

(Deleted)

Daily Settlement Price

Determination of Daily Settlement PriceSpecial Provisions for Options
24

Matters concerning daily settlement prices for Three-month Euroyen futures
option contracts shall be governed by Article 90 of the Clearing Regulations, and mattersconcerning daily settlement prices for Three-month TONA futures option contracts shallbe governed by Article 90-46 of the Clearing Regulations.

Section 9.

Article 29.

Restrictions on Option Transactions

Order Limit

29.1
The Exchange may limit the bid or offer volume of Three-month Euroyen
futures option contract or Three-month TONA futures option contract whenever the
Exchange deems it necessary to do so in order to maintain the regularity of the Exchange
Market and protect the public or customers interests.
29.2
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 29.1 above.

Article 30.

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 31.

Precedence of Customer's Orders

31.1
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 orindirect interest, before executing such Customer’s order.

Special Provisions for Options
25

31.2
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 32.

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 in regard to Three-month Euroyen futures option contracts orThree-month TONA futures option contracts, manipulate the market to appear
fictitiously active, cause an undue influence on the Exchange Market, or fake the market
prices not reflecting the actual demand or supply, or for any other similar purposes.

Section 10. Miscellaneous Provisions

Article 33.

(Deleted)

Article 34.

Clearing Commission

34.1

A clearing commission payable by a Non-Clearing Member to its Designated

Clearing Member for a Securities, etc. Clearing-Brokering Contract executed by such
Designated Clearing Member shall be paid in the manner determined between the
Non-Clearing Member and the Designated Clearing Member in advance.
34.2
The amount of the clearing commission referred to in Article 34.1 above shallbe determined between the Non-Clearing Member and its Designated Clearing Member
in advance.

Article 35.

Collection of Communication and Other Expenses

Special Provisions for Options
26

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 thepayments of clearing commissions.

Article 36.

Dispatch of Notice on Option Contract

36.1
A Trading Member shall provide a monthly statement to a Customer holding
any unsettled Three-month Euroyen futures option contract or Three-month TONA
futures option contract for its account to report on the state of such unsettled contract;provided, however, that the foregoing shall not apply if a Customer is a financial
instruments firm, an exchange licensed firm or a registered financial institution.
36.2
In the statements set forth in Article 36.1 above, the following items shall be
described: whether the contract is a put option on Three-month Euroyen futures or a put
option on Three-month TONA futures or a call option on Three-month Euroyen futures
or a call option on Three-month TONA futures, the contract month, the exercise price,
whether the contract is a sale contract or a purchase contract, the trading volume, theGiven-up Volume, the contract price, the date on which the sale or purchase contract is
executed, the trading day (the date on which the sale or purchase contract is executed or
created), and the last trading day for the said contract month and the option expiration
date.
36.3

Instead of dispatching a monthly statement set forth in Article 36.1 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 anelectronic 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.

Article 37.

Notification of Reassignment to Customers

Special Provisions for Options
27

37.1
When a Trading Member receives a notification of assignment in accordancewith Article 87.2 or 90-43.2 of the Clearing Regulations with respect to short positions
held by it for the accounts other than the Trading Member’s house account (excluding its
Clearing-undertaken Short Positions, in the case of a Clearing Member), the Trading
Member shall immediately make a reassignment to the Customers in the mannerseparately prescribed by the Exchange.
37.2
If a reassignment is made to its Customers in accordance with Article 37.1
above, the Trading Member shall immediately notify such Customers of the contract
month, the exercise price and the volume relevant to the reassignment.

CHAPTER III.
SPECIAL PROVISIONS FOR
FUTURES CONTRACT BROKERING TERMS

Section 1.

Acceptance of Orders for Option Contracts

Article 38.

Contents of Instruction upon Ordering

38.1
Whenever a Customer gives an order for a Three-month Euroyen futures option
contract, the Customer shall instruct the concerned Trading Member on the matters set
forth below.
(1)

Whether it is a put option on Three-month Euroyen futures or a call
option on Three-month Euroyen futures, its contract month and its
exercise price(2)

Designation of block trade, if applicableSpecial Provisions for Options
28

(3)

Whether it is a sale contract or a purchase contract(4)

Trading volume(5)

The upper or lower limit of price(6)

Effective period of the indent order(7)

Any other condition (modifier), if applicable

38.2
Whenever a Customer gives an order for a Three-month TONA futures option
contract, the Customer shall instruct the concerned Trading Member on the matters set
forth below.
(1)

Whether it is a put option on Three-month TONA futures or a call
option on Three-month TONA futures, its contract month and its
exercise price(2)

Designation of block trade, if applicable(3)

Whether it is a sale contract or a purchase contract(4)

Trading volume(5)

The upper or lower limit of price(6)

Effective period of the indent order(7)

Any other condition (modifier), if applicable

38.3
Notwithstanding the provisions of Articles 38.1 and 38.2 above, where a
Customer does not designate the effective period of the indent order set forth in Article
38.1(6) or 38.2(6) above, (i) if the indent order is given during the period commencing
on the opening of the pre-open period and ending on the close of the same business day’s
evening session (or ending on the close of the same business day’s day session, if
matching is not conducted in that business day’s evening session; this interpretation shall
similarly apply hereinafter), the indent order shall be valid until the close of the said

Special Provisions for Options
29

evening session, and (ii) if the indent order is given during the period commencing on
the close of the evening session and ending on the opening of the next business day’s
pre-open period, the indent order shall be valid for the period from the opening of thesaid pre-open period to the close of the same business day’s evening session.
38.4
Whenever a Customer gives an order for option exercise or receives areassignment, the Customer shall instruct the concerned Trading Member on the matters
mentioned in Article 7-2.1 of the Brokering Terms with respect to the underlying futurescontract executed as a result of such option exercise or the underlying futures contract
executed in relation to the sale contract intended by the reassignment. If the Customer
does not provide the instruction set forth in the foregoing sentence to the Trading
Member by the time designated by the Trading Member, which time shall fall on the dayon which the relevant underlying futures contract is executed, the Customer shall bedeemed to have designated a new sale contract or a new purchase contract for the said
underlying futures contract in the volume for which no instruction had been provided.

Article 39.

Offsetting Instruction

39.1
If a Customer has given an order for a Three-month Euroyen futures option
contract to a Trading Member, the Customer shall instruct the Trading Member onwhether it is a new sale contract, a new purchase contract, a Resale or a Repurchase,with respect to the Three-month Euroyen futures option contract executed or to be
executed, by the time prescribed by the Trading Member.
39.2
If a Customer has given an order for a Three-month TONA futures option
contract to a Trading Member, the Customer shall instruct the Trading Member onwhether it is a new sale contract, a new purchase contract, a Resale or a Repurchase,with respect to the Three-month TONA futures option contract executed or to be
executed, by the time prescribed by the Trading Member.
39.3
Notwithstanding the provisions of Articles 39.1 and 39.2 above, if the
instruction set forth therein is not provided to a Trading Member by a Customer who hasgiven the order, a new sale contract or a new purchase contract shall be deemed to havebeen designated.
39.4

It is not required for a Customer who gives an order for a Three-month Euroyen

Special Provisions for Options
30

futures option contract or Three-month TONA futures option contract to a Trading
Member to instruct the Trading Member on whether it is a new sale contract, a newpurchase contract, a Resale or a Repurchase at the time of giving such order.

Section 2.

Give-up

Article 39-2.

Ordering for Option Contracts for Give-up

39-2.1 If a Three-month Euroyen futures option contract or a Three-month TONA
futures option contract for give-up that has been executed based on an order given by a
Customer to an Executing Member is discharged in accordance with Article 26 of the
Clearing Regulations, the order between the Customer and the Executing Member in
relation to the said Three-month Euroyen futures option contract or Three-month TONA
futures option contract shall be terminated and, concurrently with such termination, theorder between the Customer and the Carrying Member in relation to the clearing of the
newly created Three-month Euroyen futures option contract or Three-month TONA
futures option contract shall be newly established.
39-2.2 In the Regulations for Margin and Unsettled Market Derivatives Contracts andArticle 40 of these Special Provisions, with respect to a Three-month Euroyen futures
option contract or a Three-month TONA futures option contract created as a result of
give-up, its order shall be deemed to have been given by a Customer to a Carrying
Member, and such Three-month Euroyen futures option contract or Three-month TONA
futures option contract shall be deemed to have been executed, based on the Customer’sorder, on the trading day on which the concerned Executing Member has executed theThree-month Euroyen futures option contract or the Three-month TONA futures option
contract intended by the give-up.

Article 39-3.

Contents of Instruction upon Ordering for Option Contracts for
Give-up39-3.1 Whenever a Customer gives an order for a Three-month Euroyen futures option
contract or a Three-month TONA futures option contract for give-up, the Customer shallSpecial Provisions for Options
31

instruct the concerned Executing Member on the matters set forth below, in addition to
the matters set forth in Article 38 hereof.
(1)

Fact that the intended Three-month Euroyen futures option contract orThree-month TONA futures option contract is in relation to give-up(2)

Name of a Carrying Member

39-3.2 Notwithstanding the provisions of Article 39-3.1 above, a Customer’s
instruction on the matters set forth in the respective Items of Article 39-3.1 above may be
given to the concerned Executing Member by the time prescribed by such Executing
Member with its consent; provided, however, that, in the absence of the Customer’s
instruction as aforesaid, an order for a Three-month Euroyen futures option contract or aThree-month TONA futures option contract irrelevant to give-up shall be deemed tohave been given ab initio.
39-3.3 An order for option exercise set forth in Article 42 hereof shall be given by a
Customer to the concerned Carrying Member.

Article 39-4.

Offsetting Instruction for Give-up

39-4.1 If a Customer gives an order for clearing of a Three-month Euroyen futures
option contract or a Three-month TONA futures option contract for give-up, theCustomer shall instruct the concerned Carrying Member on whether it is a new sale
contract, a new purchase contract, a Resale or a Repurchase, with respect to theThree-month Euroyen futures option contract or the Three-month TONA futures option
contract newly executed as a result of the give-up, by the time prescribed by the
Carrying Member.
39-4.2 Notwithstanding the provisions of Article 39-4.1 above, if a Customer does notprovide the instruction set forth therein to the concerned Carrying Member, theexecution of a new sale contract or a new purchase contract shall be deemed to havebeen designated.

Article 39-5.

Payment or Receipt of Option Premium for Give-up

Special Provisions for Options
32

With respect to a Three-month Euroyen futures option contract or aThree-month TONA futures option contract for give-up, a Customer shall pay to, or
receive from, the concerned Carrying Member the margin and the option premium set
forth in Article 40 hereof.

Section 3.

Article 40.

Payment or Receipt of Option Premium

Payment or Receipt of Option Premium

40.1
When a purchase contract is executed based on a Customer’s order, theCustomer shall pay the option premium therefor to the concerned Trading Member by
the time and date designated by the Trading Member, which date shall be on or before
the second business day following the business day on which there occurs the day
session of the trading day on which the offsetting transaction is effected.
40.2
When a sale contract is executed based on a Customer’s order, the concerned
Trading Member shall pay the option premium therefor to the Customer in the mannerprescribed by the Trading Member.
40.3
Between a Japanese Yen Interest Rate Remote Trading Member and its
Customer, the payment or receipt of the money representing the option premium under
Articles 40.1 and 40.2 above may be made in cash denominated in any currency as wellas Japanese Yen.

Article 41.

Amount of Option Premium

The amount of the option premium set forth in Article 40 hereof shall becalculated per trading unit according to the following formula:¥2,500 x (Contract price / 0.01)

Special Provisions for Options
33

Section 4.

Article 42.

Customer’s Option Exercise

Instruction of Option Exercise

When a Customer intends to give an order for option exercise, the Customer
shall instruct the concerned Trading Member on the trading volume to be exercised foreach series by 4:30 p.m. on the option exercise date (or by 2:30 p.m., if the option
exercise date is the option expiration date).

Article 43.

Automatic Exercise

Notwithstanding the provisions of Article 42 hereof, if a Customer does not
instruct the Trading Member, by 2:30 p.m. on the option expiration date, to exercise aput option on Three-month Euroyen futures or a put option on Three-month TONA
futures with its exercise price being greater than the final settlement figure of theunderlying futures contract of the relevant contract month or a call option on
Three-month Euroyen futures or a call option on Three-month TONA futures with its
exercise price being less than the final settlement figure of the underlying futurescontract of the relevant contract month, the Customer shall be deemed to have instructed
the Trading Member to exercise the option on Three-month Euroyen futures or the
option on Three-month TONA futures on the option expiration date; provided, however,that the foregoing shall not apply in the case where the Customer has instructed theTrading Member not to exercise the said option by 2:30 p.m. on the option expiration
date.

Section 5.

Article 44.
44.1

Measures for Customer’s Default in Settlement

Measures for Customer’s Default in Settlement

If a Customer fails to place, deposit or pay to a Trading Member any requisite

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Exchange Margin or Customer Margin or any money due and payable with respect toThree-month Euroyen futures option contracts or Three-month TONA futures option
contracts by the prescribed time, the Trading Member may at its discretion make option
exercise or offsetting transaction for the Customer’s account in order to settle suchThree-month Euroyen futures option contracts or Three-month TONA futures option
contracts.
44.2
If the Trading Member has made an option exercise for the Customer’s accountin accordance with Article 44.1 above, the Trading Member may at its discretion makeoffsetting transaction or final settlement for the Customer’s account in order to settle theunderlying futures contracts executed as a result of the option exercise.
44.3
Where the Trading Member intends an option exercise for the Customer’s
account in accordance with Article 44.1 above, if there remains any unsettled sale
contract or purchase contract of Three-month Euroyen futures or Three-month TONA
futures for the Customer's account, with the same contract month as that of theunderlying futures contract executed as a result of the option exercise, the Trading
Member may, at its discretion and for the Customer's account, notify the Exchange of thesale contract or purchase contract of such underlying futures contract as the Repurchaseor Resale for the settlement of the said sale contract or purchase contract.
44.4
If a Trading Member has incurred loss in connection with Articles 44.1 through44.3 above, the Trading Member may appropriate any of the money and the negotiablesecurities held in its possession in favor of the concerned Customer, in order tocompensate for such loss, and if there still remain outstanding portions even after theappropriation, the Trading Member may demand that the Customer pay the sum of such
unappropriated portions.

Section 6.

Brokerage Commission, etc.

Article 45.

Brokerage Commission

A Trading Member and its Customer shall beforehand agree upon the amountsof brokerage commissions to be collected by the Trading Member from the Customer

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when a Three-month Euroyen futures option contract or a Three-month TONA futures
option contract is executed based on the Customer’s order and the manner of collectionof such commissions.

Article 46.

(Deleted)

Article 47.

Collection of Communication and Other Expenses

In addition to brokerage commissions, a Trading Member may collect from its
Customer actual costs for communications or mailing and other costs expended inconnection with Three-month Euroyen futures option contracts and Three-month TONA
futures option contracts.

SUPPLEMENTARY PROVISIONS
These amended Special Provisions shall take effect as from February 3, 2014.

SUPPLEMENTARY PROVISIONS
These amended Special Provisions shall take effect as from June 9, 2017.

SUPPLEMENTARY PROVISIONS
These amended Special Provisions shall take effect as from July 3, 2017.

SUPPLEMENTARY PROVISIONS
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36

These amended Special Provisions shall take effect as from July 24, 2017.

SUPPLEMENTARY PROVISIONS
1.

These amended Special Provisions shall take effect as from March 20, 2023.

2.
Notwithstanding Article 4.2 and Article 4.3, the first trading day for eachcontract month of Three-month TONA futures option contracts whose the last trading
days fall within the period from June 2023 to June 2024, shall be March 20, 2023.

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