[English Translation]

EQUITY INDEX EXCHANGE MARGIN SETTLEMENTREGULATIONSTOKYO FINANCIAL EXCHANGE INC.

(This is an English translation of the Equity Index Exchange Margin Settlement
Regulations, which original has been prepared in the Japanese language only. The
Japanese language text hereof shall govern for all purposes and in all respects.
Accordingly, all questions that may arise within or without courts of law in regard to themeaning of the words, provisions and stipulations of these Regulations shall be decided inaccordance with the Japanese language text. Tokyo Financial Exchange Inc. (“TFX”)
assumes no responsibility for accuracy, correctness, or contents of this English text.)

Equity Index Exchange Margin Settlement Regulations

Table of Contents
Page
CHAPTER I. GENERAL PROVISIONS ........................................................................... 1
Article 1. Purpose................................................................................................... 1
Article 2. Monies to be Settled .............................................................................. 1
CHAPTER II.

DESIGNATION OF SERVICE OFFICE OF EQUITY INDEXEXCHANGE MARGIN SETTLEMENT BANK ................................... 1
Article 3. Designation of Service Office of Equity Index Exchange Margin
Settlement Bank ...........................................................................................
Article 4. Establishment of Equity Index Exchange Margin Settlement Account . 2
Article 5. Change in Registered Matters ................................................................ 2
Article 6. Closure of Equity Index Exchange Margin Settlement Account due to
Revocation of Designated Service Office .................................................. 3

CHAPTER III. SETTLEMENT OF EQUITY INDEX EXCHANGE MARGINS ............ 3
Article 7. Notice of Equity Index Exchange Margin to Daily Futures Clearing
Member ...................................................................................................... 3
Article 8. Deadline for Payment by Daily Futures Clearing Member ................... 7
Article 9. Deadline for Notice of Disbursement of Equity Index Exchange
Margin to Daily Futures Clearing Member and Deadline for
Disbursement .............................................................................................. 8
CHAPTER IV. HANDLING OF ADVERSE INCIDENTS ............................................... 9
Article 10. Communication Method upon Inability of Inter-account Transfer ........ 9
Article 11. Refusal of Payment to Daily Futures Clearing Member........................ 9
CHAPTER V. MISCELLANEOUS PROVISIONS ........................................................... 9
Article 12. Postponement of Deadline for Notice by the Exchange ...................... 10
Article 14. Determination of Necessary Matters, etc. ............................................ 10
Article 15. Costs and Expenses .............................................................................. 10
Article 16. Burden of Damages ............................................................................. 11
SUPPLEMENTARY PROVISIONS ................................................................................... 11
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CHAPTER I.
GENERAL PROVISIONS

Article 1.

Purpose

1.1
These Regulations set forth necessary matters with respect to the manner ofpayment and receipt of Equity Index Exchange Margins between Tokyo Financial
Exchange Inc. (hereinafter called the “Exchange”) and a Daily Futures Clearing Member
pursuant to the Exchange’s regulations as follows: the Trading Regulations, the Special
Provisions for Trading Regulations for Equity Index Daily Futures Transactions(hereinafter called the “Equity Index Special Provisions”), the Clearing Regulations andthe Regulations for Margin and Unsettled Contracts for Equity Index Daily Futures
Transactions (hereinafter called the “Equity Index Margin Regulations”). The
payments and receipts referred to in the preceding sentence are hereinafter collectively
called “Equity Index Exchange Margin Settlement(s)”.
1.2
The manner separately prescribed by the Exchange set forth in Article 5.1 of theEquity Index Margin Regulations shall be prescribed in Chapters II and III hereof.
1.3
In these Regulations, a “trading day” means a trading day prescribed in Article
2.17 of the Equity Index Margin Regulations.

Article 2.

Monies to be Settled

The monies to be settled by the Exchange through a financial institution
undertaking settlements of Equity Index Exchange Margins (as defined in Article 3
hereof) shall be Equity Index Exchange Margin.

CHAPTER II.
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DESIGNATION OF SERVICE OFFICE OF
EQUITY INDEX EXCHANGE MARGIN SETTLEMENT BANKArticle 3.

Designation of Service Office of Equity Index Exchange Margin
Settlement BankThe Exchange shall designate a service office of a financial institution
undertaking settlements of Equity Index Exchange Margins (hereinafter called a“Designated Service Office of Equity Index Exchange Margin Settlement Bank”)
between the Exchange and each Daily Futures Clearing Member.

Article 4.

Establishment of Equity Index Exchange Margin Settlement Account

4.1
The Exchange shall establish a deposit account for settlement of Equity Index
Exchange Margins in each Designated Service Office of Equity Index Exchange Margin
Settlement Bank (hereinafter called the “Equity Index Exchange Margin Settlement
Account”).
4.2
Each Daily Futures Clearing Member shall establish its Equity Index Exchange
Margin Settlement Account in one of the Designated Service Offices of Equity Index
Exchange Margin Settlement Bank.
4.3
Whenever a Daily Futures Clearing Member has established its Equity Index
Exchange Margin Settlement Account, the Daily Futures Clearing Member shall register
the same with the Exchange in the form prescribed by the Exchange.

Article 5.

Change in Registered Matters

Whenever a Daily Futures Clearing Member intends to change any of thematters registered in the prescribed form set forth in Article 4.3 hereof, the Daily Futures
Clearing Member shall provide the Exchange with an advance written notice stating thematter(s) to be changed.

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Article 6.

Closure of Equity Index Exchange Margin Settlement Account due to
Revocation of Designated Service Office

6.1
Whenever the Exchange revokes the designation of any Designated Service
Office of Equity Index Exchange Margin Settlement Bank, the Exchange shallimmediately notify the Daily Futures Clearing Members having their Equity Index
Exchange Margin Settlement Accounts with the said Designated Service Office of
Equity Index Exchange Margin Settlement Bank.
6.2
Each Daily Futures Clearing Member receiving a notice set forth in Article 6.1
above shall establish its Equity Index Exchange Margin Settlement Account with another
Designated Service Office of Equity Index Exchange Margin Settlement Bank inaccordance with Article 4.2 hereof before the revocation of the concerned DesignatedService Office of Equity Index Exchange Margin Settlement Bank takes effect. In thiscase, the Daily Futures Clearing Member shall register such establishment with the
Exchange in the form set forth in Article 4.3 hereof.

CHAPTER III.
SETTLEMENT OF EQUITY INDEX EXCHANGE MARGINSArticle 7.

Notice of Equity Index Exchange Margin to Daily Futures Clearing
Member

7.1
The Exchange shall notify each Daily Futures Clearing Member, by the time set
forth below on each trading day, of the amount of Equity Index Exchange Margin to bedeposited with the Exchange by the Daily Futures Clearing Member. If a trading day
on which a notice would be made falls on a Japanese bank holiday, the notice shall bemade on an immediately subsequent trading day which is a Japanese banking day.
(1)

10:00 a.m.

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(2)

2:30 p.m.

7.2
A Daily Futures Clearing Member receiving a notice set forth in Article 7.1
above from the Exchange shall deposit the Equity Index Exchange Margin (except for
those relevant to the Securities, etc. Clearing-Brokering Contracts) with the Exchange in
the amount calculated by the Exchange in accordance with Item (1) or (2) below,
according to the type of Equity Index Daily Futures transactions made by the Daily
Futures Clearing Member as an Equity Index Daily Futures Trading Member.
(1)

Upon receipt of a notice set forth in Article 7.1 (1) above, the sum of
the amounts of (a) through (c) below shall be deposited.
(a)Equity Index Exchange Margin relevant to the Daily Futures
Clearing Member’s customer account positions, which shallbe in the amount equal to the sum of the Equity Index
Exchange Margins as reported by the Daily Futures Clearing
Member to the Exchange pursuant to Article 7.1 of the Equity
Index Margin Regulations for a period commencing at 2:30
p.m. of the previous trading day and ending at the close of thesame trading day’s Market Trading Period(b)Equity Index Exchange Margins relevant to the Daily Futures
Clearing Member’s house account positions, which shall be in
the amount set forth in paragraph a. or b. below:a.

The sum of the Equity Index Exchange Margins forwhich the Daily Futures Clearing Member declaresdepositing with the Exchange for a period
commencing at 2:30 p.m. of the previous trading day
and ending at the close of the same trading day’sMarket Trading Periodb.

The sum of the Equity Index Exchange Margins forthe Daily Futures Clearing Member’s house accountpositions arising until the previous trading day forwhich depositing is required, if the Daily Futures
Clearing Member fails to make a declaration set forth

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in paragraph a. above
(c)

(2)

Equity Index Exchange Margins relevant to the Daily Futures
Clearing Member’s advanced depositing, which shall be in theamount equal to the sum of the Equity Index Exchange
Margins for which the Daily Futures Clearing Member isrequired to make advanced depositing under Article 8 of theEquity Index Margin Regulations

Upon receipt of a notice set forth in Article 7.1(2) above, the sum of theamounts of (a) and (b) below shall be deposited.
(a)Equity Index Exchange Margins relevant to the Daily Futures
Clearing Member’s customer account positions, which shallbe in the amount equal to the sum of the Equity Index
Exchange Margins as reported by the Daily Futures Clearing
Member to the Exchange pursuant to Article 7.1 of the Equity
Index Margin Regulations for a period commencing at the
opening of the pre-open period of the trading day on which
the notice is made and ending at 2:30 p.m.

(b)

Equity Index Exchange Margins relevant to the Daily Futures
Clearing Member’s house account positions, which shall be in
the amount equal to the sum of the Equity Index Exchange
Margins for which the Daily Futures Clearing Member
declares depositing with the Exchange for a period
commencing at the opening of the pre-open period of the
trading day on which the notice is made and ending at 2:30
p.m.

7.3
A Daily Futures Clearing Member receiving a notice set forth in Article 7.1
above from the Exchange shall deposit the Equity Index Exchange Margin (except for
those relevant to the Securities, etc. Clearing-Brokering Contracts) with the Exchange in
the amount calculated by the Exchange in accordance with Item (1) or (2) below,
according to the type of Equity Index Daily Futures transactions made by the Equity
Index Daily Futures Non-Clearing Member as an Equity Index Daily Futures Trading
Member, etc. whose Designated Clearing Member is the said Daily Futures Clearing
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Member.
(1)

Upon receipt of a notice set forth in Article 7.1(1) above, the sum of theamounts of (a) through (c) below shall be deposited.
(a)Equity Index Exchange Margin relevant to the Equity Index
Daily Futures Non-Clearing Member’s customer accountpositions, which shall be in the amount equal to the sum of theEquity Index Exchange Margins as reported by the Equity
Index Daily Futures Non-Clearing Member to the Exchange
pursuant to Article 7.1 of the Equity Index Margin
Regulations for a period commencing at 2:30 p.m. of theprevious trading day and ending at the close of the same
trading day’s Market Trading Period(b)Equity Index Exchange Margins relevant to the Equity Index
Daily Futures Non-Clearing Member’s house accountpositions, which shall be in the amount set forth in paragrapha. or b. below:

(c)

a.

The sum of the Equity Index Exchange Margins forwhich the Equity Index Daily Futures Non-Clearing
Member declares depositing with the Exchange for aperiod commending at 2:30 p.m. of the previous
trading day and ending at the close of the same
trading day’s Market Trading Periodb.

The sum of the Equity Index Exchange Margins for
the Equity Index Daily Futures Non-Clearing
Member’s house account positions arising until theprevious trading day for which depositing is required,
if the Equity Index Daily Futures Non-Clearing
Member fails to make a declaration set forth inparagraph a. above

Equity Index Exchange Margins relevant to the Equity Index
Daily Futures Non-Clearing Member’s advanced depositing,

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which shall be in the amount equal to the sum of the Equity
Index Exchange Margins for which the Equity Index Daily
Futures Non-Clearing Member is required to make advanced
depositing under Article 8 of the Equity Index Margin
Regulations(2)

Upon receipt of a notice set forth in Article 7.1(2) above, the sum of theamounts of (a) and (b) below shall be deposited.
(a)Equity Index Exchange Margins relevant to the Equity Index
Daily Futures Non-Clearing Member’s customer accountpositions, which shall be in the amount equal to the sum of theEquity Index Exchange Margins as reported by the Equity
Index Daily Futures Non-Clearing Member to the Exchange
pursuant to Article 7.1 of the Equity Index Margin
Regulations for a period commencing at the opening of the
pre-open period of the trading day on which the notice ismade and ending at 2:30 p.m.

(b)

Article 8.

Equity Index Exchange Margins relevant to the Equity Index
Daily Futures Non-Clearing Member’s house accountpositions, which shall be in the amount equal to the sum of theEquity Index Exchange Margins for which the Equity Index
Daily Futures Non-Clearing Member declares depositing with
the Exchange for a period commencing at the opening of the
pre-open period of the trading day on which the notice ismade and ending at 2:30 p.m.

Deadline for Payment by Daily Futures Clearing Member

Each Daily Futures Clearing Member shall pay the amount according to a noticeas set forth in Article 7 hereof to the Exchange’s Equity Index Exchange Margin
Settlement Account by the time set forth below on the trading day on which the notice ismade (or, if it is a Japanese bank holiday, on the immediately subsequent trading day
which is a Japanese banking day).

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(1)

The deadline for the payment shall be 10:00 a.m. in the case of a notice
set forth in Article 7.1(1)(2)

The deadline for the payment shall be 3:00 p.m. in the case of a notice
set forth in Article 7.1(2)Article 9.

Deadline for Notice of Disbursement of Equity Index Exchange
Margin to Daily Futures Clearing Member and Deadline for
Disbursement

9.1
If the Exchange receives a claim for drawing of Equity Index Exchange Margin
pursuant to the proviso to Article 11.1 of the Equity Index Margin Regulations in theform prescribed by the Exchange, the Exchange shall notify the concerned Daily Futures
Clearing Member claiming for drawing (the same shall apply in Article 9.2 below) of theamount to be disbursed to the Daily Futures Clearing Member, which notice shall bemade by 10:00 a.m. of the trading day (or, if it is a Japanese bank holiday, of theimmediately subsequent trading day which is a Japanese banking day) subsequent to the
trading day on which the claim for drawing is made.
9.2
By 10:00 a.m. of each trading day (or, if it is a Japanese bank holiday, of theimmediately subsequent trading day which is a Japanese banking day), the Exchange
shall disburse the Equity Index Exchange Margin in the amount equal to the sum of theamounts set forth in Items (1) and (2) below to the Equity Index Exchange Margin
Settlement Account registered by the concerned Daily Futures Clearing Member.
(1)

The amount of the Equity Index Exchange Margins relevant to thenotice made pursuant to Article 9.1 above by 10:00 a.m. of the same
trading day(2)

The amount of the Equity Index Exchange Margins set forth in theproviso to Article 11.3 of the Equity Index Margin Regulations forwhich the Exchange has accepted the disbursement based on the Daily
Futures Clearing Member’s claim for drawing received by the
Exchange by 10:00 a.m. of the same trading day

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CHAPTER IV.
HANDLING OF ADVERSE INCIDENTS

Article 10.

Communication Method upon Inability of Inter-account Transfer

If a Daily Futures Clearing Member who is obligated to pay the Equity Index
Exchange Margin cannot remit or transfer the amount payable under Article 8 hereof, theDaily Futures Clearing Member shall communicate such inability to the Exchange by
telephone by the time and date set as the deadline for the payment of the relevant Equity
Index Exchange Margin and provide the Exchange with a written notice to the same
effect immediately after the telephonic communication.

Article 11.

Refusal of Payment to Daily Futures Clearing Member

If a Daily Futures Clearing Member who is a payee of Equity Index Exchange
Margin fails to pay or deposit to or with the Exchange the amount of any money that has
become due in accordance with the Trading Regulations, the Special Provisions for
Trading Regulations and Brokering Terms for Options, Special Provisions for Trading
Regulations for FX Daily Futures Transactions, the Equity Index Special Provisions, theClearing Regulations, the Regulations for Margin and Unsettled Market Derivatives
Contract, the Regulations for Margin and Unsettled Contracts for FX Daily Futures
Transactions, the Equity Index Margin Regulations, the Regulations for Margin and
Unsettled Contracts for FX Clearing Futures Transactions, the Japanese Yen Settlement
Regulations, the FX Exchange Margin Settlement Regulations, the FX Clearing
Exchange Margin Settlement Regulations or these Regulations, the Exchange may refuse
to pay any Equity Index Exchange Margin due and payable to the Daily Futures Clearing
Member.

CHAPTER V.
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MISCELLANEOUS PROVISIONS

Article 12.

Postponement of Deadline for Notice by the Exchange

If it is difficult or impossible for the Exchange to make a notice by the time set
forth in Article 7.1 or 9.1 hereof due to failure in the Exchange System used forsettlements for Equity Index Daily Futures transactions between the Exchange and each
Daily Futures Clearing Member or due to any other unavoidable event, the Exchange
may postpone the said notice.

Article 13.

Documents for Equity Index Exchange Margins

The documents set forth in Article 5.5 of the Equity Index Margin Regulations
shall be a margin ledger and other documents that the Exchange considers to benecessary. Any of such documents shall be promptly submitted to the Exchange
whenever required by the Exchange.

Article 14.

Determination of Necessary Matters, etc.

14.1
The Exchange may establish detailed rules to prescribe necessary matters otherthan those set forth herein or take other necessary steps in order to secure proper andreliable settlements for Equity Index Exchange Margins.
14.2
Whenever the Exchange has prescribed any detailed rules or taken any step set
forth in Article 14.1 above, the Exchange shall notify the Daily Futures Clearing
Members to that effect without delay.

Article 15.

Costs and Expenses

A Daily Futures Clearing Member who has established an Equity Index
Exchange Margin Settlement Account with a Designated Service Office of Equity Index
Exchange Margin Settlement Bank shall bear the handling fees and other costs andEquity Index Exchange Margin
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expenses charged by the Designated Service Office of Equity Index Exchange Margin
Settlement Bank and pay the same in the manner and at the rate separately agreed upon
between the Designated Service Office of Equity Index Exchange Margin Settlement
Bank and the Daily Futures Clearing Member.

Article 16.
16.1

Burden of Damages

The Exchange shall not be liable for any damage that may be incurred by a

Daily Futures Clearing Member due to any fault of the concerned Designated Service
Office of Equity Index Exchange Margin Settlement Bank.
16.2

If a Daily Futures Clearing Member who has failed to make settlement ofEquity Index Exchange Margins by the deadline set forth herein, the Daily Futures
Clearing Member shall pay a default interest accrued on the amount due which shall becalculated per diem based on a year of 365 days at the rate of 14% per annum.
16.3

Where a deadline for settlement of Equity Index Exchange Margins set forth

herein is set as a specific time of a specific day, if a Daily Futures Clearing Member has
failed to make the settlement by that time of that day, the default interest shall accrue fora period of delay including the day on which such default occurred.

SUPPLEMENTARY PROVISIONS
These Regulations shall take effect as from October 1, 2010.

SUPPLEMENTARY PROVISIONS
These Regulations shall take effect as from February 27,2017.

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

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

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