[English Translation]

MARKET MAKER REGULATIONSTOKYO FINANCIAL EXCHANGE INC.

(This is an English translation of the Market Maker Regulations, the original of which has
been prepared in the Japanese language only. The Japanese language text hereof shallgovern for all purposes and in all respects. Accordingly, all questions that may arise
within or without courts of law in regard to the meaning of the words, provisions andstipulations of these Regulations shall be decided in accordance with the Japanese language
text. Tokyo Financial Exchange Inc. (“TFX”) assumes no responsibility for accuracy,
correctness, or content of this English text.)

Market Maker Regulations

Table of Contents
Page
Article 1. Purpose ..................................................................................................... 1
Article 2. Definitions................................................................................................ 1
Article 3. Designation of Market Maker .................................................................. 1
Article 4. Resignation of Market Maker .................................................................. 2
Article 5. Revocation of Designation as Market Maker .......................................... 2
Article 6.
Announcement of Designation, Resignation or Revocation of
Designation ............................................................................................. 2
Article 7. Designated Products................................................................................. 2
Article 8. Designated Contract Months.................................................................... 3
Article 8-2. Designated Series ................................................................................. 4
Article 9. Designated Market-making Period .......................................................... 4
Article 10. Duties of Market Makers ....................................................................... 6
Article 11.
Article 12.
Article 13.
Article 14.
Article 15.
Article 16.
Article 17.
Article 18.
Article 19.

Special Provisions for Duties of Market Makers ................................... 8
Restrictions on Pricing ........................................................................... 9
Temporary Measures ............................................................................ 10
Payment of Incentive Fees ................................................................... 10
Restrictions on Solicitation of Customers............................................ 10
Notice of Amendment .......................................................................... 10
Decision, Etc. of Necessary Matters .................................................... 11
Notification of Market Making Operator, Etc. .................................... 11
Notification of Trading ID for Market Making.................................... 11

SUPPLEMENTARY PROVISIONS ................................................................................... 12

Market Maker Regulations
Table of Contents

Article 1.

Purpose

These Regulations set forth the matters necessary for a program for Market
Makers, or the Trading Members who are obligated to submit both a bid and an offer (orbids and offers), either sequentially or simultaneously, during the period of hours
designated by the Exchange (hereinafter called the “designated market-making period”)
and at any times requested by the Exchange with respect to a designated contract monthor designated series (as defined in the subsequent sentence). A “designated contract
month” or “designated series” means such contract month or series that is designated by
the Exchange for each of the designated products, and a “designated product” referred toin these Regulations means any of the financial indices, etc. or options designated by the
Exchange pursuant to Article 11.7 of the Trading Regulations or Article 9.7 of theSpecial Provisions for Trading Regulations and Brokering Terms for Options (hereinafter
called the “Special Provisions for Options”).

Article 2.

Definitions

Unless otherwise specifically defined herein, the definitions of the terms set
forth in the Articles of Incorporation, the Trading Regulations and the Special Provisions
for Options shall apply in these Regulations.

Article 3.

Designation of Market Maker

3.1
The Exchange shall seek applications from Trading Members who desire to be
designated as Market Maker for each designated product during the application period
specified by the Exchange. If a Non-Clearing Member desires to be designated as
Market Maker, its application for designation as Market Maker shall be submitted with
its Designated Clearing Member’s prior consent.
3.2
When the Exchange conducts a screening for designating Market Makers, such
screening shall be based on the respective applicant’s trading experiences, etc. on the
Exchange, on any other domestic or foreign financial instruments exchanges, etc. towhich it belongs, and on financial markets and others.

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3.3
When the Exchange designates a Market Maker, the Exchange shall specify thedate and time from which the term for such designation will take effect andcommunicate it to the Market Maker in writing.

Article 4.

Resignation of Market Maker

A Trading Member who is a Market Maker may resign as Market Maker by
providing the Exchange with at least one (1) month’s prior written notice and specifying
the time of resignation which shall not be within three (3) months after the start of theterm of Market Maker.

Article 5.

Revocation of Designation as Market Maker

If the Exchange reasonably considers it necessary to revoke designation as
Market Maker, the Exchange shall specify the time from which the revocation will takeeffect and give a written notice of revocation to the Market Maker.

Article 6. Announcement of Designation, Resignation or Revocation of
Designation
If the Exchange designates a Market Maker, allows resignation as Market
Maker, or revokes designation as Market Maker pursuant to Article 3, 4 or 5 hereof, theExchange shall communicate such designation, resignation or revocation of designation
to all the concerned Trading Members in the manner prescribed by the Exchange.

Article 7.

Designated Products

The designated products shall be as set forth below.
(1)

Three-month Euroyen futures(2)

Two-year ¥ SwapnoteTM, Five-year ¥ SwapnoteTM, Seven-year

Market Maker Regulations2¥ SwapnoteTM and Ten-year ¥ SwapnoteTM(3)

Put option on a Three-month Euroyen futures and call option on a
Three-month Euroyen futures(4)

Three-month TONA futures(5)

Put option on a Three-month TONA futures and call option on a
Three-month TONA futures

Article 8.
8.1

Designated Contract Months

The designated contract months shall be as set forth below.
(1)

Three-month Euroyen futures:
The contract months available for trading during thedesignated market-making period set forth in Article 9 hereof on eachbusiness day, to be specified by the Exchange out of those set forth in
Article 4.3(1) of the Trading Regulations(2)

Two-year ¥ SwapnoteTM, Five-year ¥ SwapnoteTM, Seven-year¥ SwapnoteTM and Ten-year ¥ SwapnoteTM:
The contract months available for trading during the designatedmarket-making period set forth in Article 9 hereof on each business day,to be specified by the Exchange out of those set forth in Article 4.3(2) of
the Trading Regulations(3)

Three-month TONA futures:
The contract months available for trading during the designatedmarket-making period set forth in Article 9 hereof on each business day,to be specified by the Exchange out of those set forth in Article 4.3(3) of
the Trading Regulations

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8.2
Notwithstanding the provisions of Article 8.1 above, the Exchange may change
the designated contract months set forth in Article 8.1 above for a specific Market Maker
when the Exchange deems it necessary. In this case, the Exchange shall notify theconcerned Market Maker to that effect in advance.

Article 8-2.
8-2.1

8-2.2

Designated Series

The designated series shall be as set forth below.
(1)

Put option on a Three-month Euroyen futures and call option on a
Three-month Euroyen futures:
The series available for trading during the designated market-making
period set forth in Article 9 hereof on the respective business day, to be
specified by the Exchange out of those set forth in Article 4.2 of theSpecial Provisions for Options(2)

Put option on a Three-month TONA futures and call option on a
Three-month TONA futures:
The series available for trading during the designated market-making
period set forth in Article 9 hereof on the respective business day, to be
specified by the Exchange out of those set forth in Article 4.2 of theSpecial Provisions for Options

Notwithstanding the provisions of Article 8-2.1 above, the Exchange may

specify any other series as a designated series or change the designated series set forth in
Article 8-2.1 above for a specific Market Maker when the Exchange deems it necessary.
In this case, the Exchange shall notify the concerned Market Maker to that effect inadvance.

Article 9.

Designated Market-making Period

The designated market-making period for each designated product shall be as
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set forth below.
(1)

Three-month Euroyen futures:
The hours to be specified by the Exchange which shall fall within theMarket Trading Period set forth in Article 5.1(2), 5.2(1) or 5.5 of theTrading Regulations on each business day for the designated contract
month as set forth in Article 8 hereof(2)

Two-year ¥ SwapnoteTM, Five-year ¥ SwapnoteTM, Seven-year¥ SwapnoteTM and Ten-year ¥ SwapnoteTM:
The hours to be specified by the Exchange for the respective contract
month, which shall fall within the Market Trading Period set forth in
Article 5.1(2), 5.2(2) or 5.5 of the Trading Regulations on eachbusiness day for the designated contract month as set forth in Article 8
hereof(3)

Put option on a Three-month Euroyen futures and call option on a
Three-month Euroyen futures:
The hours to be specified by the Exchange for the respective series,
which shall fall within the Market Trading Period set forth in Article
6.1(2), 6.2 or 6.4 of the Special Provisions for Options on eachbusiness day for the designated series as set forth in Article 8-2 hereof(4)

Three-month TONA futures:
The hours to be specified by the Exchange, which shall fall within theMarket Trading Period set forth in Article 5.1(2), 5.2(3) or 5.5 of theTrading Regulations on each business day for the designated contract
months set forth in Article 8 hereof(5)

Put option on a Three-month TONA futures and call option on a
Three-month TONA futures:Market Maker Regulations
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The hours to be specified by the Exchange for the respective series,
which shall fall within the Market Trading Period set forth in Article
6.1(2), 6.2 or 6.4 of the Special Provisions for Options on eachbusiness day for the designated series as set forth in Article 8-2 hereof

Article 10.
10.1

Duties of Market Makers

A Market Maker whose term has started (hereinafter merely referred to as a“Market Maker”, except as referred to in Articles 15 and 18 hereof) shall submit bids andoffers for the respective designated product during the designated market-making period
and pursuant to the conditions set forth below for the respective designated product.

(1)

Three-month Euroyen futures, Two-year ¥ SwapnoteTM, Five-year¥ SwapnoteTM, Seven-year ¥ SwapnoteTM, Ten-year ¥ SwapnoteTM andThree-month TONA futures:(a)

At the opening of each designated market-making period, theMarket Maker shall submit both a bid and an offer (or bids
and offers) sequentially or simultaneously for the respective
designated contract month.

(b)

If any market derivatives contract(s) is/are executed during
the designated market-making period with respect to the fullvolume of, or any part of, the offer(s) submitted pursuant to
Item (a) above and thus the volume of the offer(s) thensubmitted by the Market Maker pursuant to Item (a) above
falls below the minimum volume specified by the Exchange
under Article 12.2 hereof, the Market Maker shall promptly
submit a new offer or offers to maintain the requisite
minimum volume.

(c)

If any market derivatives contract(s) is/are executed during
the designated market-making period with respect to the fullvolume of, or any part of, the bid(s) submitted pursuant toMarket Maker Regulations
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Item (a) above and thus the volume of the bid(s) thensubmitted by the Market Maker pursuant to Item (a) above
falls below the minimum volume specified by the Exchange
under Article 12.2 hereof, the Market Maker shall promptly
submit a new bid or bids to maintain the requisite minimum
volume.
(d)

If, during the designated market-making period, the Market
Maker intends to change the contents of either or both of thebid and offer (or bids and offers) submitted pursuant to Items(a) through (c) above, the Market Maker shall cancel theconcerned bid and/or offer (or bids and/or offers) and submit a
new bid and/or offer (or bids and/or offers) sequentially or
simultaneously in place of the cancelled bid and/or offer (orbids and/or offers).

(2)

Put option on a Three-month Euroyen futures and call option on a
Three-month Euroyen futures, and Put option on a Three-month TONA
futures and call option on a Three-month TONA futures:(a)

At the opening of each designated market-making period, theMarket Maker shall submit both a bid and an offer (or bids
and offers) sequentially or simultaneously for each designatedseries. Notwithstanding the foregoing, if any offer issubmitted in the price falling below the figure specified by the
Exchange, the Market Maker shall have no obligation tosubmit a bid or bids corresponding to such offer, and thisprovision shall similarly apply in Article 10.2 below.

(b)

If any market derivatives contract(s) is/are executed during
the designated market-making period with respect to the fullvolume of, or any part of, the offer(s) submitted by the Market
Maker pursuant to Item (a) above and thus the volume of theoffer(s) then submitted pursuant to Item (a) above falls below
the volume specified by the Exchange under Article 12.2
hereof, the Market Maker shall promptly submit a new offer

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or offers in a volume equal to or exceeding the volume
corresponding to such shortfall.
(c)

If any market derivatives contract(s) is/are executed during
the designated market-making period with respect to the fullvolume of, or any part of, the bids then submitted by theMarket Maker pursuant to Item (a) above and thus the volumeof the bid(s) then submitted pursuant to Item (a) above falls
below the volume specified by the Exchange under Article
12.2 hereof, the Market Maker shall promptly submit a new
bid or bids in a volume equal to or exceeding the volume
corresponding to such shortfall.

(d)

If, during the designated market-making period, the Market
Maker intends to change the contents of either or both of thebid and offer (or bids and offers) submitted pursuant to Items(a) through (c) above, the Market Maker shall cancel theconcerned bid and/or offer (or bids and/or offers) and submit a
new bid and/or offer (or bids and/or offers) sequentially or
simultaneously in place of the cancelled bid and/or offer (orbids and/or offers).

10.2
Notwithstanding the provisions of Article 10.1 above, if the Exchange requests,
on a certain business day, that a Market Maker submit a bid and an offer for a specificcontract month identified as being a designated contract month on the said business dayin accordance with Article 8 hereof or for a specific series identified as being adesignated series on the said in accordance with Article 8-2 hereof, the Market Maker
shall promptly submit a new bid and offer (or bids and offers) sequentially or
simultaneously for the said designated contract month or designated series.

Article 11.

Special Provisions for Duties of Market Makers

11.1
If the contracts for any specific designated contract month as set forth in Article
8 hereof are executed during any business day’s day session with respect to the bids andoffers submitted by a Market Maker on the same business day pursuant to Article 10Market Maker Regulations
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hereof and the total volume of the contracts for such designated contract month executed
as aforesaid reaches or exceeds the volume specified by the Exchange (hereinafter called
the “minimum goal”), or if the contracts for all the designated series as set forth in
Article 8-2 hereof are executed during any business day’s day session with respect to thebids and offers submitted by a Market Maker on the same business day pursuant to
Article 10 hereof and the total volume of the contracts for all such series executed as
aforesaid reaches or exceeds the minimum goal, the provisions of Article 10 hereof
applicable to such designated contract month or designated series shall no longer apply
with respect to the said Market Maker for the remaining period of that business day’s
designated market-making period.
11.2
If the Exchange determines that a market derivatives contract has been executed
between an offer and a bid submitted by an identical Market Maker for any designatedcontract month or designated series, the volume of all such market derivatives contracts
shall be omitted for the purpose of computing the minimum goal achieved by the Market
Maker.
11.3

Notwithstanding the provisions of Articles 11.1 and 11.2 above, the Exchange

may set a separate minimum goal for all the Market Makers or for any specific Market
Maker(s) when the Exchange deems it necessary. In this case, the Exchange shallobtain prior consent from the concerned Market Makers.
11.4
Notwithstanding the provisions of Articles 11.1 through 11.3 above, theExchange may refrain from applying the provisions relating to the minimum goal when
the Exchange deems it necessary.

Article 12.

Restrictions on Pricing

12.1
The difference between the prices of the corresponding offer and bid for any
designated contract month or designated series submitted by a Market Maker inaccordance with Article 10 hereof shall not exceed the figure to be specified by the
Exchange.
12.2
The volume of the offer or offers and the volume of the bid or bids for any
designated contract month or designated series submitted by a Market Maker inMarket Maker Regulations
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accordance with Items (1)(a) and (1)(d), Items (2)(a) and (2)(d) of Article 10.1 hereof
shall not fall below the volumes to be specified by the Exchange respectively.

Article 13.

Temporary Measures

13.1
Notwithstanding the provisions of Articles 9 through 12 hereof, the Exchange
may take any temporary measures if the Exchange deems it necessary to do so in light ofthe condition in any market derivatives transactions on the Exchange’s market or any
other market, the condition of any domestic or foreign financial transaction, or any othersituation.
13.2
If any temporary measure is taken pursuant to Article 13.1 above, the Exchange
shall promptly notify each Market Maker to that effect.

Article 14.

Payment of Incentive FeesThe Exchange shall pay incentive fees to Market Makers in accordance with theterms and conditions to be prescribed by the Exchange.

Article 15.

Restrictions on Solicitation of Customers

A Trading Member designated as Market Maker shall not conduct solicitation,
advertisement or any other activity to invite customers in such a way to cause them tobelieve that trading with a Market Maker might be more favorable than trading with anyother Trading Member not designated as Market Maker.

Article 16.

Notice of Amendment

If the Exchange amends these Regulations, the Exchange shall notify Trading
Members to that effect in advance.

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Article 17.

Decision, Etc. of Necessary Matters

17.1
In addition to the provisions of these Regulations, the Exchange may prescribe
detailed rules for any necessary matters or take any necessary steps.
17.2
If the Exchange prescribes any detailed rules or take other equivalent steps
pursuant to Article 17.1 above, the Exchange shall notify the relevant Trading Members
to that effect without delay.

Article 18.

Notification of Market Making Operator, Etc.

18.1
In order to receive any request set forth in Article 18.3 below or any other noticefrom the Exchange, a Market Maker shall authorize its Trading Officer to appoint anddismiss a liaison officer representing the Market Maker who is selected from its
employees resident in the workplace where its Member’s terminal device is installed(hereinafter called a “Market Making Operator”).
18.2
If a Market Making Operator is appointed or replaced pursuant to Article 18.1
above, the Market Maker or its Trading Officer shall notify the Exchange in advance inthe prescribed form.
18.3
If the Exchange intends to request submission of a bid and an offer or give anyother notice to a Market Maker in accordance with these Regulations or any detailed
rules or steps as set forth in Article 17 hereof, the Exchange shall be deemed to havemade such request or notice when it has notified any one of the Market Maker’s Trading
Officer and Market Making Operators.

Article 19.

Notification of Trading ID for Market Making

A Market Maker relevant to any designated product set forth in Article 7 hereof
shall communicate a Trading ID or Trading IDs to be used for its market making to the
Exchange in the manner to be prescribed by the Exchange.

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SUPPLEMENTARY PROVISIONS
The amended Regulations shall take effect as from April 23, 2012.

SUPPLEMENTARY PROVISIONS
The amended Regulations shall take effect as from November 18, 2019.

SUPPLEMENTARY PROVISIONS
The amended Regulations shall take effect as from March 20, 2023.

Market Maker Regulations
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