[English Translation]

BROKERING TERMSTOKYO FINANCIAL EXCHANGE INC.

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

Brokering Terms

Table of Contents
Page
CHAPTER I. GENERAL PROVISIONS ............................................................................. 1
Article 1.
Article 1-2.
Article 2.
Article 3.

Purpose ..................................................................................................... 1
Exclusion of Application .......................................................................... 1
Definitions ................................................................................................ 2
Compliance with Brokering Terms ........................................................... 2

CHAPTER II. ESTABLISHMENT OF TRANSACTIONS ACCOUNT ............................. 3
Article 4.
Customer’s Notifiable Matters ................................................................. 3
Article 5.
Establishment, etc. of Interest Rate Futures Transactions Account .......... 4
Article 6.
Establishment of Overseas Market Derivatives Transactions Account .... 5
Article 6-2. Establishment of FX Daily Futures Transactions Account ....................... 6
Article 6-2-2. Establishment of Equity Index Daily Futures Transactions Account ....... 7
CHAPTER II-II. ESTABLISHMENT, ETC. OF FX/EQUITY INDEX DAILY FUTURES
TRANSACTIONS ACCOUNT FOR COMBINED MANAGEMENT ........ 8
Article 6-2-3. Combined Management ............................................................................ 8
Article 6-2-4. Establishment of FX/Equity Index Daily Futures Transactions Account for
Combined Management .................................................................................................. 9
Article 6-2-5. Placement of Margin in Combined Management ................................... 10
CHAPTER III. ACCEPTANCE OF ORDERS FORMARKET DERIVATIVES
TRANSACTIONS ........................................................................................ 10
Section 1.

Customer's Ordering for Market Derivatives Transactions ....................... 11

Article 6-3. Instruction to be given by Customer before Placing Order for Contract 11
Article 7.
Contents of Instruction upon Ordering ................................................... 11
Article 7-2. Offsetting Instruction Related to Interest Rate Futures Contracts .......... 13
Article 7-2-2. Methods for Offsetting Transaction for FX Daily Futures Contracts ..... 14
Article 7-2-3. Methods for Offsetting Transaction for Equity Index Daily Futures
Contracts................................................................................................................ 15
Section 2.
Give-up ...................................................................................................... 17
Article 7-3. Ordering for Market Derivatives Contracts or Linked Clearing of L-T Link
Positions for Give-up .................................................................................................... 17
Article 7-4. Conclusion of Give-up Agreement ......................................................... 17
Article 7-5. Contents of Instruction upon Ordering for Market Derivatives Contracts or
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Linked Clearing of L-T Link Positions for Give-up ..................................................... 19
Article 7-6. Offsetting Instruction for Give-up .......................................................... 19
Article 7-7. Margin and Other Money for Give-up .................................................... 20
CHAPTER IV.

ACCEPTANCE OF LINKED CLEARING ............................................... 20

Article 8.
Time for Ordering for Linked Clearing .................................................. 20
Article 8-2. Time for Application for Intermediation of Ordering for Linked Clearing................................................................................................................ 21
Article 9.

Contents of Instruction upon Ordering or Request for Intermediation ofOrdering for Linked Market Derivatives Contracts ................................ 21
Article 10. Margins and Commissions, etc. for Linked Market Derivatives
Transactions ................................................................................................................ 22
Article 11. Offsetting Instruction .............................................................................. 22
CHAPTER V. POSITION TRANSFER .............................................................................. 23
Article 11-2. Contents of Instruction upon Ordering for Position Transfer ................. 23
Article 11-3. Ordering for Position Transfer ................................................................ 24
CHAPTER VI. MARGINS ................................................................................................. 24
Article 11-4. Margins ................................................................................................... 24
Articles 11-5 through 21 (Deleted) ................................................................................ 24
CHAPTER VII. PAYMENT OR RECEIPT OF MONEY UPON OFFSETTING
TRANSACTION OR FINAL SETTLEMENT FOR INTEREST RATE
FUTURES CONTRACTS AND L-T LINK POSITIONS ........................... 25
Article 22.
Article 23.
Article 24.

Money Payable or Receivable upon Offsetting Transaction .................. 25
Deadline for Payment of Loss Arising from Offsetting Transaction ...... 27
Money Payable or Receivable for Cash Settlement ............................... 27

Article 25. Deadline for Payment of Money for Cash Settlement ............................ 28
Articles 26 and 27 (Deleted) ......................................................................................... 29
Article 28. Payment or Receipt of Money upon Realization of Unrealized Profit orupon Transfer of Unrealized Profit to Margins ............................................................. 29
CHAPTER VIII. SETTLEMENT OF POSITIONS AND PAYMENT OR RECEIPT OF
MONEY FOR FX DAILY FUTURES CONTRACTS................................. 31
Article 28-2. Settlement for FX Daily Futures Contracts ............................................ 31
Article 28-3. FX Variation ............................................................................................ 32
Article 28-4. Payment or Receipt of Money for FX Daily Futures Contracts ............. 35
CHAPTER VIII-II. SETTLEMENT OF POSITIONS AND PAYMENT OR RECEIPT OF

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MONEY FOR EQUITY INDEX DAILY FUTURES CONTRACTS ......... 35
Article 28-5. Settlement for Equity Index Daily Futures Contracts............................. 35
Article 28-6. Equity Index Variation ............................................................................ 36
Article 28-7. Payment or Receipt of Money for Equity Index Daily Futures Contracts39
CHAPTER VIII-II-II. CONTROL SYSTEM FOR LOSS-CUT TRANSACTIONS UNDERFX DAILY FUTURES CONTRACTS ......................................................... 39
Article 28-7-2. Control System for Loss-cut Transactions ........................................... 39
CHAPTER VIII-III. .... CONTROL SYSTEM FOR LOSS-CUT TRNSACTIONS UNDEREQUITY INDEX DAILY FUTURES CONTRACTS .................................. 41
Article 28-8. Control System for Loss-cut Transactions .............................................. 41
CHAPTER VIII-IV. . CONTROL SYSTEM FOR LOSS-CUT TRANSACTIONS UNDERCOMBINED MANAGEMENT ................................................................. 42
Article 28-9. Control System for Loss-cut Transactions under Combined Management42
CHAPTER IX.

MEASURES AND OTHERS FOR CUSTOMER’S DEFAULT IN
SETTLEMENT............................................................................................. 45

Article 29. Measures for Customer’s Default in Settlement ..................................... 45
Article 30. Measures for Excessive Volume of Customer’s Position ....................... 45
Articles 31 through 38 (Deleted) ................................................................................. 46
CHAPTER X. BROKERAGE COMMISSION .................................................................. 46
Article 39.
Article 40.

Brokerage Commission .......................................................................... 46
Collection of Communication and Other Expenses................................ 47

CHAPTER XI.

INVALIDATION OF MARKET DERIVATIVES CONTRACTS ............ 47

Article 41.

Measures for Customers ......................................................................... 47

Article 42.

Effect of Invalidation of Market Derivatives Contract, etc. ................... 48

CHAPTER XII. MISCELLANEOUS PROVISIONS ........................................................ 48
Article 43.

Liability Due to Use of Market ............................................................... 48

SUPPLEMENTARY PROVISIONS ...................................................................................... 49

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CHAPTER I.
GENERAL PROVISIONS

Article 1.

Purpose

1.1
These Brokering Terms set forth the matters necessary for an agreement
concerning acceptance of a Customer’s orders for market derivatives transactions on the
Exchange Market, an agreement concerning acceptance of a Customer’s orders forlinked market derivatives transactions, an agreement concerning acceptance of broking acustomer’s orders for linked market derivatives transactions, and an agreement
concerning acceptance of a Customer’s orders for Linked Clearing set forth in Article 4.1
hereof (hereinafter called “Acceptance of Linked Clearing”), as well as the mattersnecessary for an agreement concerning an intermediate broker’s undertaking of
mediating a Customer’s orders for market derivatives transactions on the Exchange
Market, in accordance with the provisions of Article 39 of the Articles of Incorporation;
provided, however, that the matters necessary for an agreement concerning acceptance ofa Customer’s orders for market derivatives transactions in which options will be traded
are set forth in the Special Provisions for Trading Regulations and Brokering Terms for
Options (hereinafter called the “Special Provisions for Options”) separately prescribedby the Exchange as well as in these Terms.

Article 1-2.

Exclusion of Application

If a market derivatives contract relevant to a Customer’s order is an FX Daily
Futures contract, the provisions of Section 2 of Chapter III and Chapters IV, V, VII,
VIII-II and VIII-III hereof and other provisions relevant to L-T Link Positions and thegive-up mechanism shall not apply. Further, if a market derivatives contract relevant toa Customer’s order is an Equity Index Daily Futures contract, the provisions of Section 2of Chapter III and Chapters IV, V, VII, VIII and VIII-II-II hereof and provisions relevant
to L-T Link Positions and the give-up mechanism shall not apply.

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Article 2.

Definitions

The definitions of the terms set forth in the Articles of Incorporation, theTrading Regulations, the Special Provisions for Trading Regulations for FX Daily
Futures Transactions (hereinafter called the “FX Special Provisions”), the Special
Provisions for Trading Regulations for Equity Index Daily Futures Transactions(hereinafter called the “Equity Index Special Provisions”) and the Clearing Regulationsof the Exchange shall apply in these Brokering Terms. In these Terms, however,“Three-month Euroyen futures” shall mean either a market derivatives contract withrespect to the financial index set forth in Article 3(1) of the Trading Regulations or an
L-T Link Position with respect to the financial index set forth in Article 23 of the Trading
Regulations.

Article 3.

Compliance with Brokering Terms

Each Customer and Trading Member shall carefully examine these Terms andhandle all of its transactions based on the acknowledgement of its obligation to comply
with these Terms. Where a Customer acts as an intermediate broker, the relationshipbetween the intermediate broker and its offeror shall be treated, with respect to theirtransactions, as if they were a Trading Member and its customer respectively and shall begoverned by the provisions of these Terms excluding Articles 5.5, 7-2-2, 7-3.1, 7-4.1, 8,
11-3 and 28-2.2 hereof. In this case, “Agreement concerning Establishment of Interest
Rate Futures Transactions Account in the form prescribed by the Exchange” referred toin Article 5.3 hereof shall be replaced with “Agreement conforming to these Terms”,“Agreement concerning Establishment of FX Daily Futures Transactions Account in theform prescribed by the Exchange” referred to in Article 6-2.3 hereof shall be replacedwith “Agreement conforming to these Terms”, “Agreement concerning Establishment ofEquity Index Daily Futures Transactions Account in the form prescribed by the
Exchange” referred to in Article 6-2-2.3 hereof shall be replaced with “Agreement
conforming to these Terms”, “Agreement Concerning Establishment of FX/Equity Index
Daily Futures Transactions Account for Combined Management in the form prescribedby the Exchange” referred to in Article 6-2-4.3 hereof shall be replaced with “Agreement
conforming to these Terms”, “Article 8.1 hereof” referred to in Article 10 hereof shall be
replaced with “Article 8-2 hereof”, “an order or a request for intermediation of the order”
referred to in Articles 6, 9 and 10 hereof shall be replaced with “an order or an
application for intermediation of the order”, “Customer” referred to in Articles 42.2 and
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43 hereof shall be replaced with “offeror and intermediate broker”, and the following
terms referred to in these Terms excluding Articles 1, 6, 7-4.2, 8-2, 9, 10, 42.2 and 43
hereof shall be replaced respectively as follows: “Trading Member” with “intermediate
broker”, “Executing Member” with “intermediate broker to the Executing Member”,“Carrying Member” with “intermediate broker to the Carrying Member”, “positiontransferor” with “intermediate broker to the position transferor”, “position transferee”
with “intermediate broker to the position transferee”, “Customer” with “offeror”,“Customer Margin” with “Customer Margin and Intermediate Broker Margin”, “order”
with “application for intermediation of an order”, “FX Daily Futures Trading Member”
with “intermediate broker for FX Daily Futures transactions”, and “Equity Index Daily
Futures Trading Member” with “intermediate broker for Equity Index Daily Futurestransactions”.

CHAPTER II.
ESTABLISHMENT OF TRANSACTIONS ACCOUNT

Article 4.

Customer’s Notifiable Matters

4.1
If a Customer gives an order for a market derivatives contract, or an order forthe arising of an L-T Link Position and its clearing (hereinafter called “Ordering for
Linked Clearing” or an “order for Linked Clearing”, as the case may be), the Customer
shall notify a Trading Member of the matters set forth below in advance.
(1)

Name or corporate name(2)

Address or office location(3)

A specific place for receiving communications, if any(4)

The name or corporate name of an agent and its address or officelocation and the scope of the authority given to the agent, if the agent is
appointed
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4.2
When a Customer has changed any of the matters set forth in each Item of
Article 4.1 above, the Customer shall immediately notify the Trading Member thereof.

Article 5.

5.1

Establishment, etc. of Interest Rate Futures Transactions
Account

When a Customer intends to give an order for Interest Rate Futures contracts or

an order for Linked Clearing, the Customer shall establish a transaction account forInterest Rate Futures transactions (hereinafter called “Interest Rate Futures Transactions
Account”).
5.2
In order to establish an Interest Rate Futures Transactions Account, a Customer
shall apply for such establishment to a Trading Member and obtain its approval.
5.3
If a Customer has obtained the Trading Member’s approval for the application
set forth in Article 5.2 above, the Customer shall fill in an Agreement concerning
Establishment of Interest Rate Futures Transactions Account in the form prescribed by
the Exchange, with the Customer’s signature or seal affixed thereon, and submit the said
agreement to the Trading Member.
5.4
An Interest Rate Futures Trading Member shall handle Exchange Margin,
Customer Margin, profit or loss arising from offsetting transaction or final settlement forInterest Rate Futures contracts or L-T Link Positions, option premiums and other paid or
received moneys through the Interest Rate Futures Transactions Account set forth in
Article 5.1 hereof.
5.5
When a Customer intends to give an order for an Interest Rate Futures contract
for give-up, the Customer shall establish the Interest Rate Futures Transactions Accounts
set forth in Article 5.1 hereof with a Carrying Member and an Executing Member.
5.6
Notwithstanding the provisions of Article 5.5 above, when a Customer intends
to give an order for an Interest Rate Futures contract for give-up in accordance with
Article 7-4.2 hereof, a Carrying Member’s Customer and an Executing Member’s
Customer shall establish the Interest Rate Futures Transactions Accounts set forth in
Article 5.1 hereof with the Carrying Member and the Executing Member respectively.
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5.7
When a Customer agrees to replacement deposit as a manner of deposit of
margin specified in Article 26 of the Regulations for Margin and Unsettled Market
Derivatives Contract (hereinafter called the “Margin Regulations”), the Customer shallfile a written consent concerning replacement deposit with the Exchange in advance inthe form prescribed by the Exchange.
5.8
If a Customer is presented by a Trading Member the type and content ofelectromagnetic means (meaning the method similar to that is specified in Article 57-3 of
the Cabinet Office Ordinance on Financial Instruments Businesses which uses
information communication technology including, but not limited to, the method whichuses electronic data processing system; hereinafter the same shall apply) used by the
Trading Member and gives its consent to the Trading Member in writing or byelectromagnetic means, the Customer may, in lieu of submission of the agreement
specified in Article 5.3 above or filing of the written consent concerning replacement
deposit specified in Article 5.7 above, notify the Trading Member by electromagnetic
means of the effect that the Customer agrees to the contents of the said agreement or
replacement deposit. In such case, the Customer shall be deemed to have submitted thesaid agreement to, or filed the written consent with, the Trading Member.
5.9
If the Customer proposes in writing or by electromagnetic means that it shall nolonger make a notice by electromagnetic means, the Trading Member who has obtained
the written consent or the consent by electromagnetic means specified in Article 5.8
above may not accept the notice pursuant to Article 5.8 above by electromagnetic means,
except where the Customer gives a consent specified in Article 5.8 again.

Article 6.

Establishment of Overseas Market Derivatives Transactions
Account

6.1
When a Customer intends to give an order or a request for intermediation of theorder for linked market derivatives transactions, the Customer shall establish an overseas
market derivatives transactions account.
6.2
In order to establish an overseas market derivatives transactions account, theCustomer shall apply for such establishment to a Trading Member and obtain its
approval.
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6.3
If a Customer has obtained the Trading Member’s approval for the application
set forth in Article 6.2 above, the Customer shall submit an agreement concerning
establishment of overseas market derivatives transactions account to the Trading
Member.
6.4
A Trading Member shall handle the margins and other moneys set forth in
Article 10 hereof through the overseas market derivatives transactions account set forthin Article 6.1 hereof.
6.5
If a Customer is presented by a Trading Member the type and content ofelectromagnetic means used by the Trading Member and gives its consent to the Trading
Member in writing or by electromagnetic means, the Customer may, in lieu ofsubmission of the agreement specified in Article 6.3 above, notify the Trading Member
by electromagnetic means of the effect that the Customer agrees to the contents of thesaid agreement. In such case, the Customer shall be deemed to have submitted the said
agreement to the Trading Member.
6.6
If the Customer proposes in writing or by electromagnetic means that it shall nolonger make a notice by electromagnetic means, the Trading Member who has obtained
the written consent or the consent by electromagnetic means specified in Article 6.5
above may not accept the notice pursuant to Article 6.5 above by electromagnetic means,
except where the Customer gives a consent specified in Article 6.5 again.

Article 6-2.

Establishment of FX Daily Futures Transactions Account6-2.1 When a Customer intends to give an order for FX Daily Futures contracts, theCustomer shall establish a transactions account for FX Daily Futures transactions(hereinafter called “FX Daily Futures Transactions Account”).
6-2.2 In order to establish an FX Daily Futures Transactions Account, a Customer
shall apply for such establishment to an FX Daily Futures Trading Member and obtain its
approval.
6-2.3

If a Customer has obtained the FX Daily Futures Trading Member’s approval

for the application set forth in Article 6-2.2 above, the Customer shall fill in an
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Agreement concerning Establishment of FX Daily Futures Transactions Account in theform prescribed by the Exchange, with the Customer’s signature or seal affixed thereon,and submit the said agreement to the FX Daily Futures Trading Member.
6-2.4 An FX Daily Futures Trading Member shall handle FX Exchange Margin
through the FX Daily Futures Transactions Account set forth in Article 6-2.1 hereof.
6-2.5 If a Customer is presented by a Trading Member the type and content ofelectromagnetic means used by the Trading Member and gives its consent to the Trading
Member in writing or by electromagnetic means, the Customer may, in lieu ofsubmission of the agreement specified in Article 6-2.3 above, notify the Trading Member
by electromagnetic means of the effect that the Customer agrees to the contents of thesaid agreement. In such case, the Customer shall be deemed to have submitted the said
agreement to the Trading Member.
6-2.6 If the Customer proposes in writing or by electromagnetic means that it shall nolonger make a notice by electromagnetic means, the Trading Member who has obtained
the written consent or the consent by electromagnetic means specified in Article 6-2.5
above may not accept the notice pursuant to Article 6-2.5 above by electromagnetic
means, except where the Customer gives a consent specified in Article 6-2.5 again.

Article 6-2-2.

Establishment of Equity Index Daily Futures Transactions
Account

6-2-2.1 When a Customer intends to give an order for Equity Index Daily Futurescontract, the Customer shall establish a transactions account for Equity Index Daily
Futures transactions (hereinafter called “Equity Index Daily Futures Transactions
Account”).
6-2-2.2 In order to establish an Equity Index Daily Futures Transactions Account, aCustomer shall apply for such establishment to an Equity Index Daily Futures Trading
Member, etc. and obtain its approval.
6-2-2.3 If a Customer has obtained the Equity Index Daily Futures Trading Member, etc.’sapproval for the application set forth in Article 6-2-2.2 above, the Customer shall fill in an
Agreement concerning Establishment of Equity Index Daily Futures Transactions Account
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in the form prescribed by the Exchange, with the Customer’s signature or seal affixed
thereon, and submit the said agreement to the Equity Index Daily Futures Trading
Member, etc.
6-2-2.4 An Equity Index Daily Futures Trading Member, etc. shall handle Equity Index
Exchange Margin through the Equity Index Daily Futures Transactions Account.
6-2-2.5 If a Customer is presented by a Trading Member the type and content ofelectromagnetic means used by the Trading Member and gives its consent to the Trading
Member in writing or by electromagnetic means, the Customer may, in lieu ofsubmission of the agreement specified in Article 6-2-2.3 above, notify the Trading
Member by electromagnetic means of the effect that the Customer agrees to the contentsof the said agreement. In such case, the Customer shall be deemed to have submitted
the said agreement to the Trading Member.
6-2-2.6 If the Customer proposes in writing or by electromagnetic means that it shall nolonger make a notice by electromagnetic means, the Trading Member who has obtained
the written consent or the consent by electromagnetic means specified in Article 6-2-2.5
above may not accept the notice pursuant to Article 6-2-2.5 above by electromagnetic
means, except where the Customer gives a consent specified in Article 6-2-2.5 again.

CHAPTER II-II.
ESTABLISHMENT, ETC. OF FX/EQUITY INDEX DAILYFUTURES TRANSACTIONS ACCOUNT FOR COMBINEDMANAGEMENT

Article 6-2-3.

Combined Management

6-2-3.1. A Trading Member who is an FX Daily Futures Trading Member and an Equity
Index Daily Futures Trading Member shall conduct Combined Management (meaning
the Combined Management set forth in Article 25-3.2 of the Regulation for Margin and
Unsettled Contracts for FX Daily Futures Transactions (hereinafter called the “FX
Margin Regulations”) and Article 22-3.2 of the Regulations for Margin and Unsettled
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Contracts for Equity Index Daily Futures Transactions (hereinafter called the “Equity
Index Margin Regulations”); which interpretation shall equally apply hereinbelow) of a
Customer who has established an FX Daily Futures Transactions Account and an Equity
Index Daily Futures Transactions Account in accordance with Article 6-2-4 hereof(hereinafter called “Customer under Combined Management”).
6-2-3.2 A Trading Member who conducts the Combined Management (hereinafter
called “Trading Member Conducting Combined Management”) shall establish an
appropriate system for Combined Management in accordance with these Terms, the FX
Margin Regulations, the Equity Index Margin Regulations and other conditionsprescribed by the Exchange.

Article 6-2-4.

Establishment of FX/Equity Index Daily Futures Transactions
Account for Combined Management

6-2-4.1 Notwithstanding the provisions of Article 6-2 and Article 6-2-2 hereof, if a
Customer intends to use Combined Management when the Customer gives orders for FX
Daily Futures transactions and Equity Index Daily Futures transactions, the Customer
shall establish a transaction account for FX Daily Futures transactions and Equity Index
Daily Futures transactions for Combined Management (hereinafter called “FX/Equity
Index Daily Futures Transactions Account for Combined Management”).
6-2-4.2 In order to establish an FX/Equity Index Daily Futures Transactions Account for
Combined Management, the Customer shall notify a Trading Member Conducting
Combined Management of that effect and obtain its approval.
6-2-4.3 In case that the Customer has obtained the Trading Member Conducting
Combined Management’s approval for the notification set forth in Article 6-2-4.2 above,
the Customer shall fill in an Agreement Concerning Establishment of FX/Equity Index
Daily Futures Transactions Account for Combined Management in the form prescribedby the Exchange with the Customer’s signature or seal affixed thereon and submit thesaid agreement to the Trading Member Conducting Combined Management.
6-2-4.4 The Trading Member Conducting Combined Management shall handle FX
Daily Futures transactions and Equity Index Daily Futures transactions subject to
Combined Management in the FX/Equity Index Daily Futures Transactions Account for9

Brokering Terms

Combined Management.
6-2-4.5 If a Customer is presented by a Trading Member Conducting Combined
Management the type and contents of electromagnetic means used by the Trading
Member Conducting Combined Management and gives its consent to the Trading
Member Conducting Combined Management in writing or by electromagnetic means,
the Customer may, in lieu of submission of the agreement specified in Article 6-2-4.3
above, give a notice to the Trading Member Conducting Combined Management byelectromagnetic means to the effect that the Customer has agreed to the terms andconditions of the said agreement. In such case, the Customer shall be deemed to havesubmitted the said agreement to the Trading Member Conducting Combined
Management.
6-2-4.6 If the Customer proposes in writing or by electromagnetic means that it shall nolonger make the notice by electromagnetic means to the Trading Member Conducting
Combined Management who has ever obtained in writing or by electromagnetic means
the Customer’s consent specified in Article 6-2-4.5 above may not accept the Customer’s
notice pursuant to Article 6-2-4.5 above by electromagnetic means, unless the Customer
gives a consent specified in Article 6-2-4.5 again.

Article 6-2-5.

Placement of Margin in Combined Management

If a Trading Member Conducting Combined Management received money froma Customer under Combined Management to be deposited with the Exchange, theTrading Member Conducting Combined Management shall receive such money as FX
Exchange Margin. Provided, however, only to the extent that such money is thosecorresponding to the deficiency in Equity Index Exchange Margin as prescribed in
Article 22-4 of the Equity Index Margin Regulations, the Trading Member Conducting
Combined Management shall receive such money as the Equity Index Exchange Margin.

CHAPTER III.
ACCEPTANCE OF ORDERS FORMARKET
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DERIVATIVES TRANSACTIONS

Section 1.

Customer's Ordering for Market Derivatives Transactions

Article 6-3.

Instruction to be given by Customer before Placing Order for
Contract

6-3.1 Whenever a Customer gives an order for an FX Daily Futures contract, theCustomer shall instruct to the concerned FX Daily Futures Trading Member about which
one of the methods for position settlement specified in Article 7-2-2.1 below should beapplied with respect to that contract in advance.
6-3.2 Whenever a Customer gives an order for an Equity Index Daily Futurescontract, the Customer shall instruct to the concerned Equity Index Daily Futures
Trading Member, etc. about which one of the methods for position settlement specified
in Article 7-2-3.1 hereof should be applied with respect to that contract in advance.

Article 7.

Contents of Instruction upon Ordering

7.1
Whenever a Customer gives an order for an Interest Rate Futures contract, theCustomer shall instruct the concerned Trading Member on the matters set forth below.
(1)

Type of the financial index, etc. intended by the order and its contract
month

(2)

Type of strategy trade, if applicable(3)

Designation of block trade, if applicable(4)

Whether it is a sale contract or a purchase contract (or a strategy sale ora strategy purchase, in the case of strategy trade)(5)

Trading volume
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7.2

(6)

The upper or lower limit of price (or the upper or lower limit ofstrategy price, in the case of strategy trade)(7)

Effective period of the indent order(8)

Any other condition (modifier), if applicableNotwithstanding the provisions of Article 7.1 above, where a Customer does notdesignate the effective period of the indent order set forth in Article 7.1(7) 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 thatbusiness day’s evening session; this interpretation shall similarly apply hereinafter), theindent order shall be valid until the close of the said evening session, and (ii) if the indent
order is given during the period commencing on the close of the evening session andending on the opening of the pre-open period of the next business day (which means abusiness day as defined in Article 2(23) of the Trading Regulations unless otherwise
specified; this interpretation shall similarly apply hereinafter), the indent order shall bevalid for the period from the opening of the said pre-open period to the close of the samebusiness day’s evening session.
7.3
Whenever a Customer gives an order for an FX Daily Futures contract, theCustomer shall instruct the concerned FX Daily Futures Trading Member on the mattersset forth below.
(1)

Type of the FX Daily Futures contract intended by the order(2)

Whether it is a sale contract or a purchase contract(3)

Trading volume(4)

The upper or lower limit of price, if it is a limit order or a trigger limit
order

(5)

Price as a trigger condition, if it is a trigger bid or trigger offer

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(6)Effective period of the indent order, save when it is an IC market order
or a loss-cut order(7)

Any other condition (modifier), if applicable

7.4
Whenever a Customer gives an order for an Equity Index Daily Futurescontract, the Customer shall instruct the concerned Equity Index Daily Futures Trading
Member, etc. on the matters set forth below.
(1)

Type of the Equity Index Daily Futures contract intended by the order(2)

Whether it is a sale contract or a purchase contract(3)

Trading volume(4)

The upper or lower limit of price, if it is a limit order or a trigger limit
order

(5)

Price as a trigger condition, if it is a trigger bid or trigger offer(6)

Effective period of the indent order, save when it is an IC market order
or a loss-cut order(7)

Any other condition (modifier), if applicable

Article 7-2.

Offsetting Instruction Related to Interest Rate Futures
Contracts

7-2.1 If a Customer has given an order for an Interest Rate Futures contract to a
Trading Member, the Customer shall instruct the Trading Member on whether it is a newsale contract, a new purchase contract, a Resale or a Repurchase, with respect to theInterest Rate Futures contract executed or to be executed, by the time prescribed by the
Trading Member.
7-2.2

Notwithstanding the provisions of Article 7-2.1 above, if the instruction set forth

therein is not provided to a Trading Member by a Customer who has given the order for
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an Interest Rate Futures contract, a new sale contract or a new purchase contract shall bedeemed to have been designated.
7-2.3 It is not required for a Customer who gives an order for an Interest Rate Futurescontract to a Trading Member to instruct the Trading Member on whether it is a new sale
contract, a new purchase contract, a Resale or a Repurchase at the time of giving suchorder.

Article 7-2-2.

Methods for Offsetting Transaction for FX Daily Futures
Contracts

7-2-2.1 A position held by an FX Daily Futures Trading Member under an FX Daily
Futures contract based on a Customer’s order shall be settled by either of the following
methods whichever is applicable:(1)

Filing of offsetting notification (meaning that, where the FX Daily
Futures Trading Member simultaneously holds both a short position
and a long position under one same kind of FX Daily Futures contract,
it will reduce both positions by the same volume by filing an offsetting
notification to the Exchange)(2)

Execution of offsetting transaction (meaning that (a) where the FX
Daily Futures Trading Member holds a short position under any given
kind of FX Daily Futures contract, it will reduce that position by
executing a corresponding purchase contract of the same kind to set off
that position against the latter by the volume of that position itself orthe volume at which the purchase contract is executed, whichever issmaller, in which case the reduction shall take effect immediately upon
the execution of that contract, and (b) where the FX Daily Futures
Trading Member holds a long position under any given kind of FX
Daily Futures contract, it will reduce that position by executing acorresponding sale contract of the same kind to set off that position
against the latter by the volume of that position itself or the volume atwhich the sale contract is executed, whichever is smaller, in which casethe reduction shall take effect immediately upon the execution of that
contract)
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Brokering Terms

7-2-2.2 When an offsetting notification is filed pursuant to Article 90-9-2 of the
Clearing Regulations, the designated short position and long position held at each of its
Customer’s accounts shall be reduced individually, pursuant to the details of thenotification on the trading day on which the notification is filed.
7-2-2.3 In the case of the offsetting transactions, where an FX Daily Futures Trading
Member holds any short position or long position of the FX Daily Futures contract(s)relevant to a Customer’s order, if the FX Daily Futures Trading Member executes a newpurchase contract or sale contract for the Customer’s account which is the same type of
the FX Daily Futures contract as the aforesaid short position or long position, as the casemay be, this newly executed purchase contract or sale contract, as the case may be, shallbe deemed to be a contract relevant to a Repurchase of the short position or Resale of thelong position held by the FX Daily Futures Trading Member and the volume
corresponding to the aforesaid short position or long position shall be reduced in theorder of execution.
7-2-2.4 It is not required for a Customer who gives an order for an FX Daily Futurescontract to an FX Daily Futures Trading Member to instruct the FX Daily Futures
Trading Member on whether it is a new sale contract, a new purchase contract, a Resale
or a Repurchase at the time of giving such order.

Article 7-2-3.

Methods for Offsetting Transaction for Equity Index Daily
Futures Contracts

7-2-3.1 A position held by an Equity Index Daily Futures Trading Member, etc. underan Equity Index Daily Futures contract based on a Customer’s order shall be settled byeither of the following methods whichever is applicable:(1)

Filing of offsetting notification (meaning that, where the Equity Index
Daily Futures Trading Member, etc. simultaneously holds both a shortposition and a long position under one same kind of Equity Index
Daily Futures contract, it will reduce both positions by the same
volume by filing an offsetting notification to the Exchange)(2)

Execution of offsetting transaction (meaning that (a) where the Equity
15

Brokering Terms

Index Daily Futures Trading Member, etc. holds a short position under
any given kind of Equity Index Daily Futures contract, it will reducethat position by executing a corresponding purchase contract of thesame kind to set off that position against the latter by the volume ofthat position itself or the volume at which the purchase contract is
executed, whichever is smaller, in which case the reduction shall takeeffect immediately upon the execution of that contract, and (b) where
the Equity Index Daily Futures Trading Member, etc. holds a longposition under any given kind of Equity Index Daily Futures contract,
it will reduce that position by executing a corresponding sale contractof the same kind to set off that position against the latter by the volumeof that position itself or the volume at which the sale contract is
executed, whichever is smaller, in which case the reduction shall takeeffect immediately upon the execution of that contract)(3)

Reset (meaning the method set forth in Article 90-18.1 of the Clearing
Regulations)

7-2-3.2 When an offsetting notification is filed pursuant to Article 90-22 of the Clearing
Regulations, the designated short position and long position held at each of its
Customer’s accounts shall be reduced individually, pursuant to the details of thenotification on the trading day on which the notification is filed.
7-2-3.3 In the case of the offsetting transactions, where an Equity Index Daily Futures
Trading Member, etc. holds any short position or long position of the Equity Index Daily
Futures contract(s) relevant to a Customer’s order, if the Equity Index Daily Futures
Trading Member, etc. executes a new purchase contract or sale contract for the
Customer’s account which is the same type of the Equity Index Daily Futures contract as
the aforesaid short position or long position, as the case may be, this newly executed
purchase contract or sale contract, as the case may be, shall be deemed to be a contract
relevant to a Repurchase of the short position or Resale of the long position held by the
Equity Index Daily Futures Trading Member, etc. and the volume corresponding to theaforesaid short position or long position shall be reduced in the order of execution.
7-2-3.4 It is not required for a Customer who gives an order for an Equity Index Daily
Futures contract to an Equity Index Daily Futures Trading Member, etc. to instruct the
Equity Index Daily Futures Trading Member, etc. at the time of giving such order
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Brokering Terms

whether it is ordering for a new Equity Index Daily Futures contract or for settlement ofexisting Equity Index Daily Futures contract.

Section 2.

Give-up

Article 7-3.

Ordering for Market Derivatives Contracts or Linked
Clearing of L-T Link Positions for Give-up

7-3.1 With respect to a market derivatives contract for give-up that has been executed
based on an order given by a Customer to an Executing Member, or with respect to an
L-T Link Position for give-up that has arisen based on an order for Linked Clearing
given by a Customer to an Executing Member, if such market derivatives contract or L-T
Link Position is discharged upon the Exchange’s receipt of a take-up notification from a
Carrying Member, the order between the Customer and the Executing Member in
relation to the said market derivatives contract or L-T Link Position shall be terminatedand, concurrently with such termination, the order between the Customer and theCarrying Member in relation to the clearing of the newly created market derivatives
contract or L-T Link Position shall be newly established.
7-3.2 In the Margin Regulations, with respect to a market derivatives contract or L-T
Link Position created or arisen as a result of give-up, its order shall be deemed to havebeen given by a Customer to a Carrying Member, and such market derivatives contractor L-T Link Position shall be deemed to have been executed or have arisen, based on the
Customer’s order, on the trading day on which the concerned Executing Member has
executed or caused to arise the market derivatives contract or L-T Link Position intended
by the give-up.

Article 7-4.

Conclusion of Give-up Agreement

7-4.1 In order for both an Executing Member and a Carrying Member to accept anorder for a market derivatives contract or Linked Clearing of an L-T Link Position forgive-up, a give-up agreement shall be entered into by and among the Executing Member,the Carrying Member and a Customer who intends to give the order, which shall specify
17

Brokering Terms

the matters set forth below.
(1)

The amount of clearing commission and its collector and collection
method(2)

The matters concerning rejection of undertaking of clearing

7-4.2 Notwithstanding the provisions of Article 7-4.1 above, where an Executing
Member’s Customer differs from a Carrying Member’s Customer, if the Executing
Member and the Carrying Member have confirmed that the market derivatives contract
or the L-T Link Position for give-up has been ordered by the same ultimate customer (the“Ultimate Customer”) respectively, such Executing Member and Carrying Member shallbe allowed to accept an order for the market derivatives contract or Linked Clearing of
the L-T Link Position for give-up. In such case, such market derivatives contract orsuch L-T Link Position for give-up shall be handled in accordance with the provisions of
the following Items:(1)

When the Executing Member had a market derivatives contract for give-up
executed or L-T Link position arise based on its Customer’s order, theExecuting Member notifies the Carrying Member either that the said
contract is for the house account of the Executing Member’s Customer orthat it is on account of the Ultimate Customer of the said Customer.

(2)

When the Carrying Member confirms that the person notified to it
pursuant to Article 7-4.2 (1) above is the same person as the Carrying
Member’s Customer or the Ultimate Customer of the said Customer, as thecase may be, the Carrying Member shall treat, at the responsibility of theCarrying Member, the market derivatives contract or the L-T Link position
which has so arisen by such give-up as the contract or L-T Link Position
for the house account of the Carrying Member’s Customer or those on theorder of the said Customer, as the case may be.

(3)With respect to a market derivatives contract for give-up that has been
executed based on an order given by the Executing Member’s Customer
to the Executing Member, or with respect to an L-T Link Position forgive-up that has arisen based on an order for Linked Clearing given by
the Executing Member’s Customer to the Executing Member, if such
18

Brokering Terms

market derivatives contract or L-T Link Position is discharged upon the
Exchange’s receipt of a take-up notification from the Carrying Member,the order between the Executing Member’s Customer and the Executing
Member in relation to the said market derivatives contract or L-T Link
Position shall be terminated and, concurrently with such termination, theorder between the Carrying Member’s Customer and the Carrying
Member in relation to the clearing of the market derivatives contract or
L-T Link Position newly created by give-up shall newly be arisen.

Article 7-5.

Contents of Instruction upon Ordering for Market Derivatives
Contracts or Linked Clearing of L-T Link Positions for
Give-up

7-5.1 Whenever a Customer gives an order for a market derivatives contract or Linked
Clearing of a L-T Link Position for give-up, the Customer shall instruct the concerned
Executing Member on the matters set forth below, in addition to the matters set forth in
the respective Items of Article 7.1 or 9.1 hereof:(1)

Fact that the intended market derivatives contract or L-T Link Position
is in relation to give-up(2)

Name of a Carrying Member

7-5.2 Notwithstanding the provisions of Article 7-5.1 above, a Customer’s instruction
on the matters set forth in the respective Items of Article 7-5.1 above may be given to theconcerned 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 market derivatives contract or L-T Link Position irrelevant togive-up shall be deemed to have been given ab initio.

Article 7-6.

Offsetting Instruction for Give-up

7-6.1 If a Customer gives an order for clearing of a market derivatives contract or L-T
Link Position for give-up, the Customer shall instruct the concerned Carrying Member
on whether it is a new sale contract or L-T Link Short Position, a new purchase contract
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Brokering Terms

or L-T Link Long Position, a Resale or a Repurchase, with respect to the market
derivatives contract or L-T Link Position newly created or arising as a result of thegive-up, by the time prescribed by the Carrying Member.
7-6.2 Notwithstanding the provisions of Article 7-6.1 above, if a Customer does notprovide the instruction set forth therein to the concerned Carrying Member, the creationor arising of a new sale contract or L-T Link Short Position or the creation or arising of anew purchase contract or L-T Link Long Position shall be deemed to have been
designated.

Article 7-7.

Margin and Other Money for Give-up

With respect to a market derivatives contract or L-T Link Position for give-up, aCustomer shall pay to, or receive from, the concerned Carrying Member the margin andthe money incidental to offsetting transaction or final settlement.

CHAPTER IV.
ACCEPTANCE OF LINKED CLEARING

Article 8.

Time for Ordering for Linked Clearing

8.1
If a Customer intends to cause an L-T Link Position to arise for a Trading
Member’s account by giving an order or a request for intermediation of the order for alinked market derivatives contract to the Trading Member, the order for Linked Clearingof the L-T Link Position shall be deemed to have been given to the Trading Member
when the order or the request for intermediation of the order for the said linked market
derivatives contract has been given.
8.2
If a Customer intends to cause an L-T Link Position to arise for a Trading
Member’s account without giving an order or a request for intermediation of the order
for a linked market derivatives contract to the Trading Member, the order for Linked
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Brokering Terms

Clearing of the L-T Link Position shall be deemed to have been given to the Trading
Member when the L-T Link Position has actually arisen.

Article 8-2.

Time for Application for Intermediation of Ordering for
Linked Clearing

If an offeror intends to cause an L-T Link Position to arise for a Trading
Member’s account by giving an order for, or applying for intermediation of an order for,a linked market derivatives contract to an intermediate broker, the application forintermediation of the order for Linked Clearing of the L-T Link Position shall be deemed
to have been made to the intermediate broker when the offeror has given the order for, orapplied for intermediation of the order for, the said linked market derivatives contract tothe intermediate broker.

Article 9.

Contents of Instruction upon Ordering or Request forIntermediation of Ordering for Linked Market Derivatives
Contracts

9.1
Whenever the Customer set forth in Article 8 or 8-2 hereof intends to give anorder or a request for intermediation of the order to a Trading Member with respect to alinked market derivatives contract, the Customer shall instruct the Trading Member on
the matters set forth below.
(1)

Type of the index intended by the order and its contract month(2)

Trading volume(3)

The figure of the index in the linked market derivatives contract(4)

Effective period of the indent order

9.2
Notwithstanding the provisions of Article 9.1 above, where the Customer set
forth in Article 8 or 8-2 hereof does not designate the effective period of the indent orderset forth in Article 9.1(4) above, (i) if the indent order is given during the market trading
period of the Linked Overseas Exchange (hereinafter called the “Linked Overseas
21

Brokering Terms

Exchange’s trading period”), the indent order shall be valid during such Linked Overseas
Exchange’s trading period only, and (ii) if the indent order is given outside the Linked
Overseas Exchange’s trading period, the indent order shall be valid during theimmediately forthcoming Linked Overseas Exchange’s trading period only.

Article 10.

Margins and Commissions, etc. for Linked Market Derivatives
Transactions

10.1
If a linked market derivatives contract is executed based on an order or a request
for intermediation of the order received by a Trading Member from a Customer set forthin Article 8.1 hereof, the Trading Member may collect a brokerage commission from theCustomer in the amount and at the time prescribed by the Trading Member.
10.2
A Trading Member may collect actual costs for communications or mailing andother costs expended in connection with linked market derivatives transactions, inaddition to brokerage commissions.
10.3
Where a linked market derivatives contract is executed based on an order or arequest for intermediation of an order by a Customer set forth in Article 8.1 hereof, if no
L-T Link Position arises on the same terms and conditions as those applicable to theoverseas position in relation to such linked market derivatives contract on the Linked
Overseas Exchange’s trading day on which that contract is executed, the concerned
Trading Member may pay to, or receive from, the Customer in the manner prescribed by
the Trading Member, the loss or profit in relation to the linked market derivatives
contract and the margin for the linked market derivatives contract in the amountprescribed by the Trading Member.

Article 11.

Offsetting Instruction

11.1
If a Customer gives an order for Linked Clearing to a Trading Member, theCustomer shall instruct the Trading Member on whether it is the arising of a new L-T
Link Short Position, the arising of a new L-T Link Long Position, a Resale or a
Repurchase, with respect to the L-T Link Position that has arisen or will arise, by thetime prescribed by the Trading Member.

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Brokering Terms

11.2
Notwithstanding the provisions of Article 11.1 above, if the instruction set forth
therein is not provided to a Trading Member by a Customer who has given the order for
Linked Clearing, a new L-T Link Short Position or a new L-T Link Long Position shallbe deemed to have arisen.
11.3
It is not required for a Customer who gives an order for Linked Clearing to a
Trading Member to instruct the Trading Member on whether it is the arising of a new
L-T Link Short Position, the arising of a new L-T Link Long Position, a Resale or a
Repurchase at the time of giving such order.

CHAPTER V.
POSITION TRANSFER

Article 11-2.

Contents of Instruction upon Ordering for Position Transfer

11-2.1 If a Customer gives an order for position transfer for an Interest Rate Futurescontract or L-T Link Position, the Customer shall instruct the position transferor and theposition transferee on the matters set forth below by the times designated by the positiontransferor and the position transferee respectively.
(1)

Type of the financial index, etc. for the position to be transferred andits contract month or its series set forth in the Special Provisions for
Options(2)

Whether it is a short position or a long position(3)

Volume of the position to be transferred(4)

Name of the position transferee if the instruction is provided to theposition transferor, and name of the position transferor if the
instruction is provided to the position transferee; and23

Brokering Terms

(5)Position transfer date

11-2.2 If a Customer gives an order for position transfer for an FX Daily Futurescontract or an Equity Index Daily Futures contract, the Customer shall instruct theposition transferor and the position transferee on the matters set forth below by the times
designated by the position transferor and the position transferee respectively.
(1)

Number of the FX Daily Futures Transactions Account or Equity Index
Daily Futures Transactions Account(2)

Position transfer date

Article 11-3.

Ordering for Position Transfer

If the transferred position based on a Customer’s order is taken over by aposition transferee, the order between the Customer and a position transferor in relation
to the transferred position shall be terminated at the position transfer time and,concurrently with such termination, the order between the Customer and the positiontransferee in relation to the said transferred position shall be newly established.

CHAPTER VI.
MARGINS

Article 11-4. Margins
Matters relating to margins shall be prescribed by the Margin Regulations, the
FX Margin Regulations and the Equity Index Margin Regulations.

Articles 11-5 through 21(Deleted)

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CHAPTER VII.
PAYMENT OR RECEIPT OF MONEY UPONOFFSETTING TRANSACTION OR FINALSETTLEMENT FOR INTEREST RATE FUTURESCONTRACTS AND L-T LINK POSITIONSArticle 22.

Money Payable or Receivable upon Offsetting Transaction

22.1
If offsetting transaction has been made for a market derivatives contract (whichmeans an Interest Rate Futures contract; this interpretation shall similarly apply hereafterin this Chapter) or L-T Link Position of a Customer, the payment or receipt shall bemade between the concerned Trading Member and the Customer in the amount obtainedby multiplying: (i) the amount calculated per trading unit with respect to each financial
index, etc. specified below in accordance with the following formula and (ii) the sum of
the Customer’s trading volume and Arising Volume (excluding the Given-up Volume foreach) and the Given-up Volume. If a document is not required to be delivered to a
Customer upon conclusion of a contract pursuant to Article 45 of the Act or if an averageof the unit prices of the transactions of the same issue on the same day (hereinafter called“Average Unit Price”) may be stated on a report on outstanding balance of transactions
pursuant to Article 108, Paragraph 7 of the Cabinet Office Order on Financial
Instruments Business, etc., such Average Unit Price may be used as a Contract Price inthe calculation stated in the preceding sentence as prescribed by the Exchange.
(1)

Three-month Euroyen futures:¥100,000,000 x [Difference between the contract price relevant to theoffsetting transaction and the contract price of the sale contract orpurchase contract traded by the offsetting transaction, or difference
between the Acceptance Figure relevant to the offsetting transaction and
the Acceptance Figure of the L-T Link Short Position or L-T Link Long
Position traded by the offsetting transaction] x 1/100 x [90 days/360
days]

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Brokering Terms

(2)Two-year ¥ Swapnote™, Five-year ¥ Swapnote™, Seven-year¥ Swapnote™ or Ten-year ¥ Swapnote™:¥10,000,000 x [Difference between the contract price relevant to theoffsetting transaction and the contract price of the sale contract orpurchase contract traded by the offsetting transaction] x 1/100(3)

Three-month TONA futures:¥2,500 x [Difference between the contract price relevant to theoffsetting transaction and the contract price of the sale contract orpurchase contract traded by the offsetting transaction] ÷ 1/100

22.2
In connection with Article 22.1 above, where a Customer’s market derivatives
contract or L-T Link Position is a sale contract or L-T Link Short Position respectively,
the money shall be received by the Customer if the contract price or Acceptance Figure
relevant to the Repurchase is less than the contract price of the sale contract traded bysuch Repurchase or the Acceptance Figure of the L-T Link Short Position traded by such
Repurchase, and the money shall be paid by the Customer if the contract price or
Acceptance Figure relevant to the Repurchase is greater than the contract price of thesale contract traded by such Repurchase or the Acceptance Figure of the L-T Link Short
Position traded by such Repurchase. Likewise, where a Customer’s market derivatives
contract or L-T Link Position is a purchase contract or L-T Link Long Position
respectively, the money shall be received by the Customer if the contract price or
Acceptance Figure relevant to the Resale is greater than the contract price of thepurchase contract traded by such Resale or the Acceptance Figure of the L-T Link Long
Position traded by such Resale, and the money shall be paid by the Customer if thecontract price or Acceptance Figure relevant to the Resale is less than the contract priceof the purchase contract traded by such Resale or the Acceptance Figure of the L-T Link
Long Position traded by such Resale.
22.3
Between a Japanese Yen Interest Rate Remote Trading Member and its
Customer, the payment or receipt under Article 22.1 above may be made in cash
denominated in any currency as well as Japanese Yen.

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Article 23.

Deadline for Payment of Loss Arising from Offsetting
Transaction

If a Customer is obligated to pay money under Article 22 hereof, the Customer
shall pay the amount calculated in accordance with Article 22 hereof to the Trading
Member by the time and date designated by the Trading Member, which date shall be onor before the second business day following the business day on which there occurs theday session of the trading day on which the offsetting transaction is made (or on or
before the immediately subsequent business day not being a bank holiday, if such second
business day falls on a bank holiday specified in Article 15.1 of the Banking Act).

Article 24.

Money Payable or Receivable for Cash Settlement

24.1
With respect to a sale contract or L-T Link Short Position, or a purchase contractor L-T Link Long Position, for a specific contract month of Three-month Euroyen
futures, Two-year ¥ Swapnote™, Five-year ¥ Swapnote™, Seven-year ¥ Swapnote™,
Ten-year ¥ Swapnote™ or Three-month TONA futures for which no offsetting
transaction has been made before its last trading day (hereinafter called “final shortposition” or “final long position” respectively), settlement shall be made by reference tothe figure to be determined by the Exchange after the close of such last trading day’s day
session in accordance with the Clearing Regulations (hereinafter called the “final
settlement figure”), the final settlement as aforesaid being hereinafter called “cashsettlement”. In this case, the Customer or the Trading Member shall pay to, or receive
from, the other party the amount obtained by multiplying: (i) the amount calculated per
trading unit with respect to each financial index, etc. specified below in accordance withthe following formula and (ii) the volume of the Customer’s final short position or final
long position. If a document is not required to be delivered to a Customer uponconclusion of a contract pursuant to Article 45 of the Act or if an Average Unit Price may
be stated on a report on outstanding balance of transactions pursuant to Article 108,Paragraph 7 of the Cabinet Office Order on Financial Instruments Business, etc., such
Average Unit Price may be used as a Contract Price in the calculation stated in thepreceding sentence as prescribed by the Exchange.
(1)

Three-month Euroyen futures:¥100,000,000 x [Difference between the final settlement figure and the27

Brokering Terms

contract price or Acceptance Figure relevant to the final short positionor final long position] x 1/100 x (90 days/360 days)(2)

Two-year ¥ Swapnote™, Five-year ¥ Swapnote™, Seven-year¥ Swapnote™ or Ten-year ¥ Swapnote™:¥10,000,000 x [Difference between the final settlement figure and thecontract price relevant to the final short position or final long position]
x 1/100(3)

Three-month TONA futures:¥2,500 x [Difference between the final settlement figure and thecontract price relevant to the final short position or final long position]
÷ 1/100

24.2
In connection with Article 24.1 above, where a Customer holds final shortposition, the money shall be received by the Customer if the final settlement figure isless than the contract price or Acceptance Figure relevant to the final short position, andthe money shall be paid by the Customer if the final settlement figure is greater than thecontract price or Acceptance Figure relevant to the final short position. Likewise,
where a Customer holds final long position, the money shall be received by the
Customer if the final settlement figure is greater than the contract price or Acceptance
Figure relevant to the final long position, and the money shall be paid by the Customer if
the final settlement figure is less than the contract price or Acceptance Figure relevant to
the final long position.
24.3
Between a Japanese Yen Interest Rate Remote Trading Member and its
Customer, the payment or receipt under Article 24.1 above may be made in cash
denominated in any currency as well as Japanese Yen.

Article 25.

Deadline for Payment of Money for Cash Settlement

A Customer shall pay the amount calculated in accordance with Article 24
hereof to the concerned Trading Member by the time and date designated by the Trading
Member, which date shall be on or before the business day immediately following the28

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final settlement date (which means the date specified by the Exchange for each contract
month of the respective financial index, etc. under the Trading Regulations).

Articles 26 and 27

Article 28.

(Deleted)

Payment or Receipt of Money upon Realization of Unrealized
Profit or upon Transfer of Unrealized Profit to Margins

28.1
Notwithstanding the provisions of Articles 22 through 25 hereof, if a Trading
Member has made offsetting transaction or final settlement for an unsettled market
derivatives contract or unsettled L-T Link Position which is based on an order given by a
Customer whose unrealized profit had been paid out or transferred to margins inaccordance with Article 36 of the Margin Regulations, the Trading Member shall pay themoney to, or receive the money from, its Customer in accordance with the conditions set
forth below. In this case, the provisions of Article 36 of the Margin Regulations shallapply mutatis mutandis to unsettled market derivatives contracts or L-T Link Positions
set forth in Item (2) below.
(1)

Where there remains no unsettled market derivatives contract nor
unsettled L-T Link Position based on the Customer’s order as a resultof offsetting transaction or final settlement:(a)

If the Japanese Yen amount which is equivalent to the amount of
the unrealized profit paid out and transferred to margins is greaterthan the Japanese Yen amount which is equivalent to the amountof money receivable by the Customer under Article 22 or 24
hereof (hereinafter called the “realized profit”), the Trading
Member shall notify the Customer thereof, and the Customer shallthereupon refund the amount of such difference to the 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 sessionof the trading day on which the offsetting transaction or final
settlement is made. In this case, the Trading Member shall not
pay the realized profit to the Customer, regardless of the29

Brokering Terms

provisions of Article 22 or 24 hereof.
(b)

If the Japanese Yen amount which is equivalent to the amount of
the unrealized profit paid out and transferred to margins is lessthan the amount of the realized profit, the Trading Member shall
pay such difference to the Customer, regardless of the provisionsof Article 22 or 24 hereof.

(c)

If there is the Japanese Yen amount which is equivalent to theoutstanding amount of money payable by the Customer inaccordance with Article 22 or 24 hereof (hereinafter called the“realized loss”), the Customer shall pay to the Trading Member
the amount of money relevant to the realized loss in accordancewith Article 23 or 25 hereof and refund to the Trading Member
the amount of the unrealized profit paid out and transferred tomargins 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 sessionof the trading day on which the offsetting transaction or final
settlement is made.

(2)

Where there remains any unsettled market derivatives contract or
unsettled L-T Link Position based on the Customer’s order as a resultof offsetting transaction or final settlement:(a)

If the Japanese Yen amount which is equivalent to the amount of
the unrealized profit paid out and transferred to margins is greaterthan the amount of the realized profit, the Trading Member shallnot pay the realized profit to the Customer, regardless of theprovisions of Article 22 or 24 hereof. In this case, the difference
between the Japanese Yen amount which is equivalent to theamount of the unrealized profit paid out and transferred tomargins and the amount of the realized profit shall be recognized
as a new unrealized profit payable or transferable to margins.

(b)

If the Japanese Yen amount which is equivalent to the amount of
the unrealized profit paid out and transferred to margins is less
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than the amount of the realized profit, the Trading Member shall
pay such difference to the Customer, regardless of the provisionsof Article 22 or 24 hereof. In this case, the amount of theunrealized profit payable or transferable to margins shall be zero.
(c)

If the Customer has incurred a realized loss, the Customer shall
pay the money relevant to the realized loss in accordance with
Article 23 or 25 hereof. In this case, the amount of theunrealized profit payable or transferable to m argins shall remainunchanged from the amount before the offsetting transaction or
final settlement.

28.2
Between a Japanese Yen Interest Rate Remote Trading Member and its
Customer, the payment or refund under Article 28.1 above may be made in cash
denominated in any currency other than Japanese Yen.

CHAPTER VIII.
SETTLEMENT OF POSITIONS AND PAYMENTOR RECEIPT OF MONEY FOR FX DAILYFUTURES CONTRACTS

Article 28-2.

Settlement for FX Daily Futures Contracts

28-2.1 Settlement of a short position or long position for FX Daily Futures contracts
shall be made by either the filing of offsetting notification specified in Article 7-2-2.1(1)hereof or the execution of offsetting transaction specified in Article 7-2-2.1(2) hereof(hereinafter collectively called “notification or execution of offsetting transaction” in this
Article 28-2 and Article 28-3 below) in such a way that the FX variation (as defined in
Article 28-3.1 below) for the position subject to the notification or execution of
offsetting transaction will be transferred to the FX Daily Futures Margin, the settlement
as aforesaid being hereinafter called “FX cash settlement”.

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Brokering Terms

28-2.2 With respect to a short position or long position for an FX Daily Futurescontract for which no offsetting notification has been filed on the trading day on whichthat position exists, the position for which the contract day is the said trading day shallbe discharged upon the close of the said trading day’s Market Trading Period and,concurrently with such discharge, a position for which the contract day is the next
trading day shall be newly created, between the Exchange and the FX Daily Futures
Trading Member holding such discharged position, under the conditions that are same as
those for the discharged position except for the contract day. The discharge andcreation of the position related to FX Daily Futures contract in this Chapter VIII shall bereferred to as “rollover”.

Article 28-3.

FX Variation

28-3.1 FX variation to be settled in the FX cash settlement set forth in Article 28-2.1
hereof shall be in the amount equal to a sum of the following calculatory amounts arisingin relation to the position for an FX Daily Futures contract.
(1)

Amount of initial FX revaluation profit or loss

(2)

Cumulative amount of daily FX revaluation profits and losses(3)

Amount of fixed FX revaluation profit or loss

(4)

Cumulative amount of swap points

28-3.2 The “amount of the initial FX revaluation profit or loss” referred to in Article
28-3.1(1) above shall mean, when rollover arises in respect of an FX Daily Futurescontract newly executed and there is a difference between the FX settlement price(meaning the “FX settlement price” provided for in Article 90-2.1 of the Clearing
Regulations; hereinafter the same definition shall be used in this Article 28-3 below) on
the trading day on which the said contract is executed, and the traded price upon suchexecution, the positive or negative calculatory amount calculated based on the said
difference.
28-3.3 The “amount of accumulated daily FX revaluation profits and loss” referred toin Article 28-3.1(2) above shall mean, when rollover arises on any trading day in respect
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Brokering Terms

of an FX Daily Futures contract that is executed on or before the immediately preceding
trading day and there is a difference between the FX settlement price as of the trading
day, by the close of the Market Trading Period of which the rollover arises and the FX
settlement price as of the trading day immediately preceding the said trading day forsuch rollover, the cumulative amount of the positive or negative calculatory amount thatshall be calculated daily based on the said difference.
28-3.4 The “amount of the fixed FX revaluation profit or loss” referred to in Article
28-3.1(3) above shall mean the positive or negative calculatory amount calculated basedon the difference which arises in each of the following cases whichever is applicable, outof a notification or execution of offsetting transaction:(1)

Where an offsetting notification is filed:
Either of the differences set forth in (a) and (b) below, whichever isapplicable:(a)If both the short position and the long position to be settled
have been created from the transactions that are both executedon the trading day on which the offsetting notification is filed:
Difference of the contract prices between those transactions(b)

If either the short position or the long position to be settled has
been created from the transaction that is executed on the
trading day on which the offsetting notification is filed, and theother position has been created from rollover:Difference between the contract price under the saidtransaction executed on the trading day on which the offsetting
notification is filed and the FX settlement price quoted on one(1) trading day before the said trading day(2)

Where an offsetting transaction is executed:
Difference between the contract price under the offsetting transaction
and the price set forth in (a) or (b) below, whichever is applicable:
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Brokering Terms

(a)Where the position to be settled has been created from thetransaction executed on the trading day on which the offsetting
transaction is executed, the contract price of the saidtransaction(b)

Where the position to be settled has been created fromrollover, the FX settlement price quoted on one (1) trading day
before the trading day on which the offsetting transaction is
executed

28-3.5 The “amount of accumulated swap points” referred to in Article 28-3.1(4) above
shall mean, if rollover arises with respect to a position for an FX Daily Futures contract
and the date of the FX cash settlement with respect to such position is postponed by suchrollover, the positive or negative calculatory amount shall be calculated for the
postponed period in the manner separately prescribed by the Exchange, for the respective
type of FX Daily Futures contracts for the purpose of adjustment of interest rate
difference between the two currencies relevant to the concerned position (hereinafter
called “swap point”), and the “amount of accumulated swap points” is the cumulative
sum of such swap points.
28-3.6 With respect to a Cross Currency Pairs transaction (meaning the “Cross
Currency Pairs transaction” defined in Article 2(20) of the FX Special Provisions, whichinterpretation shall equally apply in this Article 28-3.6 below), the amount specified ineach Item of Article 28-3.1 above shall be calculated in the denomination of the Term
Currency (meaning the “Term Currency” defined in Article 2(22) of the FX Special
Provisions, which interpretation shall equally apply in this Article 28-3.6 below) of therelevant Cross Currency Pairs transaction, and then converted into the Japanese Yenamount at either of the following amounts as applicable: (a) if converted on a trading day
on which a rollover arises, the FX settlement price applied to the Yen Currency Pairs
transaction (meaning the “Yen Currency Pairs transaction” defined in Article 2(19) of the
FX Special Provisions which is, if such Cross Currency Pairs transaction is a Largetransaction (meaning a Large transaction defined in Article 2 (23) of the FX Special
Provisions; which interpretation shall equally apply in this Article 28-3.6 below), the Yen
Currency Pairs transaction of the Large transaction with respect to the said Term
Currency, or, if such Cross Currency Pairs transaction is a Non-large transaction(meaning a Non-large transaction defined in Article 2 (24) of the FX Special Provisions;
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Brokering Terms

which interpretation shall equally apply in this Article 28-3.6 below), the Yen Currency
Pairs transaction of the Non-large transaction with respect to the said Term Currency),
which interpretation shall equally apply throughout in this Article 28-3.6) with respect tothe said Term Currency as of that trading day; and (b) if converted on a trading day on
which the notification or execution of offsetting transaction is made, the FX settlement
price applied to the Yen Currency Pairs transaction with respect to the said Term
Currency as of that trading day, as the case may be.

Article 28-4.

Payment or Receipt of Money for FX Daily Futures Contracts

Matters relating to payment or receipt of money for an FX Daily Futurescontract between an FX Daily Futures Trading Member and its Customer shall beprescribed by the FX Margin Regulations.

CHAPTER VIII-II.
SETTLEMENT OF POSITIONS AND PAYMENT OR
RECEIPT OF MONEY FOR EQUITY INDEX DAILYFUTURES CONTRACTS

Article 28-5.

Settlement for Equity Index Daily Futures Contracts

28-5.1 Settlement of a short position or long position for Equity Index Daily Futurescontracts shall be made by either the filing of offsetting notification specified in Article
7-2-3.1(1) hereof, the execution of offsetting transaction specified in Article 7-2-3.1(2)hereof or the Reset specified in Article 7-2-3.1(3) (hereinafter collectively called“notification or execution of offsetting transaction” in this Article 28-5 and Article 28-6
hereof), in such a way that the Equity Index variation (as defined in Article 28-6.1
hereof) for the position subject to the notification or execution of offsetting transaction,
if it is recognized as profit, will be added to the Equity Index Exchange Margin, and if it
is recognized as loss, will be deducted from the Equity Index Exchange Margin.

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Brokering Terms

28-5.2 With respect to a short position or long position for an Equity Index Daily
Futures contract for which no offsetting notification has been filed on the trading day on
which that position exists, the position for which the contract day is the said trading day
shall be discharged upon the close of the said trading day’s Market Trading Period and,concurrently with such discharge, a position for which the contract day is the next
trading day shall be newly created, between the Exchange and the Equity Index Daily
Futures Clearing Member holding such discharged position, under the conditions that are
the same as those for the discharged position except for the contract day. The discharge
and creation of the position related to Equity Index Daily Futures contract in this Chapter
VIII-II shall be referred to as “rollover”.

Article 28-6.

Equity Index Variation

28-6.1 An Equity Index variation shall be the sum of the following calculatory amounts
arising in relation to the position taken for an Equity Index Daily Futures contract:(1)

Amount of initial Equity Index revaluation profit or loss

(2)

Cumulative amount of daily Equity Index revaluation profits or losses(3)

Amount of final Equity Index revaluation profit or loss

(4)

Cumulative amount of daily interest rate amounts(5)

Cumulative amount of dividend amounts

28-6.2 The “amount of initial Equity Index revaluation profit or loss” referred to in
Article 28-6.1(1) above shall mean, when rollover is made in respect of an Equity Index
Daily Futures contract newly executed and there is a difference between the Equity Index
Settlement Price (meaning the “Equity Index Settlement Price” provided for in Article
90-12.1 of the Clearing Regulations; hereinafter the same definition shall be used below
in this Article 28-6) on the trading day on which the said contract is executed, and thetraded price upon such execution, the positive or negative calculatory amount calculated
based on the said difference.
28-6.3 The “accumulated amount of daily Equity Index revaluation profit or loss”
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Brokering Terms

referred to in Article 28-6.1(2) above shall mean, when rollover is made on any trading
day in respect of an Equity Index Daily Futures contract that is executed on or before theimmediately preceding trading day and there is a difference between the Equity Index
Settlement Price as of the trading day, by the close of the Market Trading Period ofwhich the rollover is made and the Equity Index Settlement Price as of the trading day
immediately preceding the said trading day for such rollover, the cumulative amount of
the positive or negative calculatory amount that shall be calculated daily based on thesaid difference.
28-6.4 The “amount of final Equity Index revaluation profit or loss” referred to in
Article 28-6.1(3) above shall mean the positive or negative calculatory amountcalculated based on the difference which arises in each of the following cases whicheveris applicable, out of a notification or execution of offsetting transaction:(1)

Where an offsetting notification is filed:
Either of the differences set forth in (a) and (b) below, whichever isapplicable:(a)If both the short position and the long position to be settled
have been created from the transactions that are both executedon the trading day on which the offsetting notification is filed:
Difference of the contract prices between those transactions(b)

If either the short position or the long position to be settled has
been created from the transaction that is executed on the
trading day on which the offsetting notification is filed, and theother position has been created from rollover:Difference between the contract price under the saidtransaction executed on the trading day on which the offsetting
notification is filed and the Equity Index Settlement Pricequoted on one (1) trading day before the said trading day(2)

Where an offsetting transaction is executed:

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Brokering Terms

Difference between the contract price under the offsetting transaction
and the price set forth in (a) or (b) below, whichever is applicable:(a)Where the position to be settled has been created from thetransaction executed on the trading day on which the offsetting
transaction is executed, the contract price of the saidtransaction(b)

Where the position to be settled has been created fromrollover, the Equity Index Settlement Price quoted on one (1)trading day before the trading day on which the offsetting
transaction is executed(c)Where a Reset is executed:
Difference between the Reset Price (meaning the Reset Priceset forth in Article 90-18-2.1 of the Clearing Regulations) andthe Equity Index Settlement Price quoted on the last tradingday

28-6.5 The “accumulated daily interest rate amount” referred to in Article 28-6.1(4)above shall mean, if rollover is made with respect to a position for an Equity Index Daily
Futures contract and the settlement date designated for the settlement referred to in
Article 28-5.1 hereof with respect to such position is postponed by such rollover, thecumulative positive calculatory amount for the holder of the short position and thecumulative negative calculatory amount for the holder of the long position, eachcalculated for the postponed period in the manner separately prescribed by the Exchange
for the respective types of Equity Index Daily Futures contracts.
28-6.6 The “accumulated dividend amount” referred to in Article 28-6.1(5) above shallmean with respect to the positions taken for an Equity Index Daily Futures contract the
cumulative positive calculatory amount for the holder of the long position and thecumulative negative calculatory amount for the holder of the short position, eachcalculated in the manner separately prescribed by the Exchange, to be correspondent to
the theoretical amount by which the expected dividend payment would affect the equity
index where payment of dividend is expected on an issue comprising the equity index
traded under the Equity Index Daily Futures contract.

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28-6.7 Accumulated dividend amounts shall not accrue with respect to DAX® Daily
Futures contracts with Reset Date, Gold ETF Daily Futures contracts with Reset Date,WTI Daily Futures contracts with Reset Date, Silver ETF Daily Futures contracts with
Reset Date and Platinum ETF Daily Futures contracts with Reset Date.

Article 28-7.

Payment or Receipt of Money for Equity Index Daily Futures
Contracts

Matters relating to payment or receipt of money for an Equity Index Daily
Futures contract between an Equity Index Daily Futures Trading Member, etc. and its
Customer shall be prescribed by the Equity Index Margin Regulations.

CHAPTER VIII-II-II.
CONTROL SYSTEM FOR LOSS-CUT TRANSACTIONSUNDER FX DAILY FUTURES CONTRACTS

Article 28-7-2. Control System for Loss-cut Transactions
28-7-2.1
An FX Daily Futures Trading Member shall establish and maintain an
appropriate system for controlling loss-cut transactions (defined hereinafter), in
executing an FX Daily Futures transaction for the FX Daily Futures Customer accountposition prescribed in Article 2(6) of the said Regulations, based on an order of the
Customer to whom the FX Margin reference amount for a Non-individual Customer
prescribed in Article 22-3.1 of the FX Margin Regulations is applied (excluding those
who are Professional Investors as defined in Article 2, Paragraph 31 of the Act and who
are regarded as Professional Investors pursuant to Article 34-3 of the Act).
28-7-2.2
the following:(1)

The control system referred to in Article 28-7-2.1 above shall ensure

It shall be confirmed that the Effective Margin Ratio (defined
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hereinafter) does not fall below the respective percentage set forth
below in accordance with the classifications set forth in the relevant
sub-item at intervals within five (5) minutes during the Market Trading
Period.

(2)(a)

Within 1 minute

20%

(b)

Over 1 minute and within 5 minutes

30%

If the Effective Margin Ratio falls below the respective percentages set
forth in Artcle 28-7.2 (1) above, a loss-cut transaction shall be
executed immediately.

28-7-2.3
For the purpose of this Article 28-7-2, “loss-cut transaction” means anoffsetting of the FX Daily Futures transactions to be executed for the purpose of limiting
the loss to the Customer when the amount of loss to be incurred by such Customer upon
settlement of the FX Daily Futures transactions executed based on such Customer’sorder reaches to the amount calculated in accordance with the calculation method agreed
with such Customer in advance.
28-7-2.4
For the purpose of this Article 28-7-2, “Effective Margin Ratio” meansa percentage figure obtained, by the amount after an adjustment of Fixed FX variation as
defined in Article 2(9) of FX Margin Regulations to a deposited FX Exchange Margin as
defined in Article 2(1) of FX Margin Regulations (if Fixed FX variation is a positive
number, the absolute value thereof shall be added and, if it is a negative number, theabsolute value thereof shall be deducted) added by a gain to be obtained by a Customer
or deducted by a loss to be incurred by such Customer upon settlement of FX Daily
Futures transactions, divided by the aggregated sum of each of the Ordering Margin as
defined in Article 19.1 of the FX Margin Regulations, applicable to the relevant type of
FX Daily Futures contracts, being multiplied by the larger of the total short positions or
the total long positions held for the relevant type of FX Daily Futures contracts (if theaggregated short positions and the aggregates long positions are the same amount, bysuch amount), and then multiplied by 100.

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CHAPTER VIII-III.
CONTROL SYSTEM FOR LOSS-CUT TRNSACTIONS UNDEREQUITY INDEX DAILY FUTURES CONTRACTS

Article 28-8.

Control System for Loss-cut Transactions

28-8.1 An Equity Index Daily Futures Trading Member, etc. shall establish andmaintain an appropriate system for controlling loss-cut transactions which it enters intowith individual Customers (excluding those who are qualified institutional investors
defined in Article 2, Paragraph 31, Item (1) of the Act and who are regarded to beProfessional Investors pursuant to Article 34-4 thereof; this interpretation shall similarly
apply hereafter in this Article) under Equity Index Daily Futures contracts.
28-8.2 The control system referred to in Article 28-8.1 above shall ensure thefollowing:(1)

The loss-cut trigger will be established such that the loss of the
Customer will not exceed the Equity Index Margin by taking the pricefluctuation, liquidity and other risks into account.

(2)

Well-defined loss-cut arrangements shall be reflected in the contract
with the Customer.

(3)

The amount of the Customer’s loss at each designated point in time
during the trading hours shall be tracked appropriately, so that once theamount meets the trigger established pursuant to Article 28-8.2(1)above, the loss-cut transaction shall be executed.

(4)

Details of the loss-cut transaction will be reported to the board of
directors or any equivalent organization either regularly or from time totime as necessary.

28-8.3 A Trading Member may vary the control systems for loss-cut transactions aswell as the terms of loss-cut transactions, from one Customer to the other Customers.

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28-8.4 For the purpose of this Article 28-8, “loss-cut transaction” means the following
actions and similar measures to be taken for the purpose of limiting the loss to theCustomer under an Equity Index Daily Futures contract:(1)

To execute a Resale or a Repurchase for the Customer’s account, andunwind the Customer’s positions in whole or in part(2)

To take dual positions for the Customer’s account(3)

To cause the Customer to place an order with the condition (modifier)which will limit the loss of the Customer in advance for the positions
held for the Customer’s account

CHAPTER VIII-IV.
CONTROL SYSTEM FOR LOSS-CUT TRANSACTIONSUNDER COMBINED MANAGEMENT

Article 28-9.

Control System for Loss-cut Transactions under Combined
Management

28-9.1 Notwithstanding the preceding two Articles, a Trading Member Conducting
Combined Management shall establish and maintain an appropriate system forcontrolling loss-cut transactions under Combined Management which it enters into witha Customer under Combined Management who is an individual (meaning an individual
as defined in Article 123, Paragraph 1, Item 21-2 of the Cabinet Office Ordinance on
Financial Instruments Business, etc.) (hereinafter called “Individual Customer under
Combined Management” in this Article) or a Customer under Combined Management
who is a customer as defined in Article 28-7-2.1 above (hereinafter called“Non-individual Customer under Combined Management” in this Article and together
with an Individual Customer under Combined Management collectively called “Subject
Customer”) under an FX Daily Futures contract or Equity Index Daily Futures contract
to be handled in an FX/Equity Index Daily Futures Transactions Account for Combined
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Management.
28-9.2 The control system referred in Article 28-9.1 above shall ensure the following:(1)

An Effective Margin Ratio for each Subject Customer shall becalculated in accordance with the following:(a)(i) The amount after an adjustment of Fixed FX variation as
defined in Article 2(9) of FX Margin Regulations to an FX
Exchange Margin as defined in Article 2(1) of FX Margin
Regulations (namely, if Fixed FX variation is a positive
number, the absolute value thereof shall be added and, if it is anegative number, the absolute value thereof shall be deducted),either added by a gain to be obtained by a Subject Customer or
deducted by a loss to be incurred by such Subject Customer
upon settlement of FX Daily Futures transactions, and (ii) theamount after an adjustment of Fixed Equity Index variation as
defined in Article 2(9) of Equity Index Margin Regulations to
a deposited Equity Index Exchange Margin as defined in
Article 2(1) of Equity Index Margin Regulations (namely, if
Fixed Equity Index variation is a positive number, the absolutevalue thereof shall be added and, if it is a negative number, theabsolute value thereof shall be deducted), either added by again to be obtained by a Subject Customer or deducted by aloss to be incurred by such Subject Customer upon settlementof Equity Index Daily Futures transactions, shall beaggregated:(b)(i) The amount of Ordering Margin as defined in Article 19.1
of FX Margin Regulations multiplied by the total shortpositions or the total long positions held for each type of FX
Daily Futures contracts, whichever is larger (if they are thesame volume, such volume), and (ii) the amount of Ordering
Margin as defined in Article 16.1 of the Equity Index Margin
Regulations multiplied by the absolute value of the differenceof the short positions and the long positions held for each typeof Equity Index Daily Futures contracts, shall be aggregated;
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(c)

(2)

The amount obtained in (a) above divided by the amountobtained in (b) above shall be multiplied by 100.

The loss-cut trigger under Combined Management shall be establishedin accordance with the following for each Subject Customer:(a)With respect to an Individual Customer under Combined
Management, the loss-cut trigger shall not fall below theloss-cut trigger prescribed by The Financial Futures
Association of Japan with respect to the foreign exchange
margin transactions conducted by its members;(b)With respect to a Non-individual Customer under Combined
Management, the loss-cut trigger shall not fall below thetrigger prescribed in Article 28-7-2.2(1) above;(c)

The loss-cut trigger for FX Daily Futures contracts and theloss-cut trigger for Equity Index Daily Futures contracts shallbe at the same level.

(3)

If the Effective Margin Ratio for each Subject Customer falls below
the level established in accordance with Article 28-9.2(2) above withthe consent of such Subject Customer, loss-cut transactions under
Combined Management shall be executed immediately with respect toboth the FX Daily Futures contracts and Equity Index Daily Futurescontracts of such Subject Customer.

28-9.3 For the purpose of this Article 28-9, a “loss-cut transaction under Combined
Management” means, if the Effective Margin Ratio of a Subject Customer falls below
the level agreed between a Trading Member Conducting Combined Management andsuch Subject Customer in advance, to execute a Resale or a Repurchase for the Subject
Customer’s account and unwind of the positions held by the Subject Customer for the
purpose of limiting the loss of the Subject Customer under FX Daily Futures contracts
and Equity Index Daily Futures contracts to be handled in an FX/Equity Index Daily
Futures Transactions Account for Combined Management.

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28-9.4 Notwithstanding the provisions of Article 28-9.3 above, a Trading Member
Conducting Combined Management may take the measures set forth in Article 28-8.4
with respect to the positions of Equity Index Daily Futures contracts.

CHAPTER IX.
MEASURES AND OTHERS FOR CUSTOMER’S
DEFAULT IN SETTLEMENT

Article 29.

Measures for Customer’s Default in Settlement

29.1
If a Customer fails to place, deposit or pay any requisite margin or money to a
Trading Member in relation to market derivatives contracts or L-T Link Positions by theprescribed time, the Trading Member may at its discretion make offsetting transaction or
final settlement for the Customer’s account in order to settle such market derivatives
contracts or L-T Link Positions.
29.2
If a Trading Member Conducting Combined Management makes offsetting
transaction in accordance with Article 29.1 above, it shall make offsetting
transactions for both FX Daily Futures contracts and Equity Index Daily Futurescontracts of a Customer under Combined Management.
29.3

If a Trading Member has incurred loss in connection with Article 29.1 andArticle 29.2 above, the Trading Member may appropriate any of the money and thenegotiable securities held in its possession in favor of the concerned Customer, in order
to compensate 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.

Article 30.
30.1

Measures for Excessive Volume of Customer’s Position

If the total volume of a Customer’s unsettled market derivatives contracts and45

Brokering Terms

unsettled L-T Link Positions exceeds the upper limit communicated from time to time by
a Trading Member to the Customer in advance as a result of creation of market
derivatives contracts or arising of L-T Link Positions for give-up for the Customer’s
account, the Trading Member may at its discretion make offsetting transaction or final
settlement for the Customer’s account in order to settle market derivatives contracts or
L-T Link Positions in the volume equal to the excess over the said upper limit.
30.2
If the total volume of a Customer’s unsettled market derivatives contracts andunsettled L-T Link Positions for give-up created or arisen for a specific period exceeds
the upper limit communicated from time to time by a Trading Member to the Customer
in advance as a result of creation or arising of market derivatives contracts or L-T Link
Positions for give-up for the Customer’s account, the Trading Member may at its
discretion make offsetting transaction or final settlement for the Customer’s account inorder to settle such market derivatives contracts or L-T Link Positions.

Articles 31 through 38(Deleted)

CHAPTER X.
BROKERAGE COMMISSION

Article 39.

Brokerage Commission

39.1
A Trading Member and its Customer shall beforehand agree upon the amountsof brokerage commissions to be collected by the Trading Member from the Customer
when a market derivatives contract is executed based on the Customer’s order and themanner of collection of such commissions.
39.2
A Trading Member shall prescribe the amounts of brokerage commissions to becollected from its Customer when an L-T Link Position arises in line with an order for
Linked Clearing given by the Customer and accepted by the Trading Member.

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39.3
With respect to position transfer based on a Customer’s order accepted by aposition transferor and a position transferee, the position transferor and the positiontransferee shall respectively prescribe their brokerage commissions to be collected fromthe Customer when the position transfer has been made.
39.4
An Equity Index Daily Futures Trading Member, etc. and its Customer shall
beforehand agree upon the amounts of brokerage commissions to be collected by the
Equity Index Daily Futures Trading Member, etc. from the Customer when an Equity
Index Daily Futures contract is reset and the manner of collection of such commissions.

Article 40.

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 market derivatives transactions or the arising of L-T Link Positions.

CHAPTER XI.
INVALIDATION OF MARKET DERIVATIVES CONTRACTS

Article 41.

Measures for Customers

41.1
When a Trading Member receives a notice from the Exchange under Article
14-3.2 of the Trading Regulations, the Trading Member shall promptly communicate thecontents of the notice to its Customers as mentioned below.
(1)

Customers who have given an order to the Trading Member withrespect to any market derivatives contract to be invalidated(2)

Other Customers to whom the Trading Member will consider it
necessary to make notice

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Article 42.

Effect of Invalidation of Market Derivatives Contract, etc.

42.1
In the event that a market derivatives contract is invalidated by the Exchange,
the rights and obligations between the Customer and the Trading Member in relation tosuch invalidated market derivatives contract shall be deemed not to have arisen from the
beginning.
42.2

The Customer may not claim the Exchange for any damages that would haveincurred by the Customer due to invalidation of a market derivatives contract by the
Exchange, unless such damages are determined to have been incurred due to willful
misconduct or gross negligence of the Exchange.
42.3The Customer may not claim the Trading Member who executes the order for Error
Trade for any damages that would have incurred by the Customer due to invalidation of amarket derivatives contract by the Exchange, unless willful misconduct or grossnegligence of such Trading Member is found at the execution of the order of Error Trade.

CHAPTER XII.
MISCELLANEOUS PROVISIONS
Article 43.

Liability Due to Use of Market

A Customer may not claim the Exchange for any damages incurred by it, aslong as such damages were incurred due to either of the following:(1)

Any measures taken by the Exchange based on applicable laws or
regulations or rules or regulations of the Exchange; or(2)Force majeure including but not limited to natural disaster, etc.

Article 44.

Allocation of Positions and Notice to Customers Subject to48

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Allocation at the Time of Early Termination of Positions forInterest Rate Futures Contracts
44.1
If the positions for Interest Rate Futures contracts based on orders of Customers
are designated as the positions to be allocated for early termination specified in Article
15-10-3.1 of the Clearing Regulations, the Trading Member shall immediately allocate
such positions to be allocated for early termination to the respective Customers by thepredetermined method.
44.2
In the case of Article 44.1 above, the Trading Member shall promptly notify the
Customers whose positions have been subjected to the allocation for early termination of
the issues and volume relating to such allocation.

SUPPLEMENTARY PROVISIONS
These amended regulations shall take effect as from November 30, 2015.

SUPPLEMENTARY PROVISIONS

These amended regulations shall take effect as from February 27, 2017.

SUPPLEMENTARY PROVISIONS

These amended regulations shall take effect as from June 9, 2017.

SUPPLEMENTARY PROVISIONS
49

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These amended regulations shall take effect as from June 26, 2017.

SUPPLEMENTARY PROVISIONS

These amended regulations shall take effect as from July 3, 2017.

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

SUPPLEMENTARY PROVISIONS
These amended regulations shall take effect as from October 26, 2020.

SUPPLEMENTARY PROVISIONS

These amended regulations shall take effect as from February 1, 2021.

SUPPLEMENTARY PROVISIONS

These amended regulations shall take effect as from April 12, 2021.

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SUPPLEMENTARY PROVISIONS

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

SUPPLEMENTARY PROVISIONS

These amended regulations shall take effect as from September 11, 2023.

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