TOKYO FINANCIAL EXCHANGE INC.

TOKYO FINANCIAL EXCHANGE/OUTLOOK 2011

Tokyo Financial Exchange Inc. (TFX) is a unique financial derivatives exchange inJapan which offers various products and trading opportunities to institutional as well as
retail investors. With its flagship product of Three-month Euroyen futures and options,
TFX has established its status as “Home Market for Euroyen” globally, and now more than
99% of Euroyen futures and options are traded on the TFX market.

RETAIL

WHOLE SALE
INTEREST RATE
■ 3-month Euroyen Futures■ Options on 3-month Euroyen Futures■ Over-night Call Rate Futures■ Spot-Next Repo Rate Futures

FOREIGN EXCHANGESTOCKS<Exchange Forex Margin Contracts><Exchange Equity Index Margin Contracts>■ 12 currencies v.s. JPY(e.g. JPY/USD, JPY/EUR, JPY/GBP)■ 11 cross currencies(e.g. EUR/USD, GBP/USD)■ One Major Japanese stock index■ Three Major global stock indices(China, Germany, U.K.)

The copyright of this publication is held by the Tokyo Financial Exchange Inc. (TFX).
This publication has been compiled by TFX for general informational purpose only. Although every attempt has been made to ensure the accuracy of the information, TFX assumes no responsibility
for any errors or omissions. All matters pertaining to rules and procedures herein are made subject to and are superseded by the official rules of TFX. The descriptions in this publication are only forcommentary purposes and do not whatsoever intend to provide advice on investment or asset management. The statements and calculations herein contain examples for illustration purpose and TFX
will assume no responsibility for their use. This publication is not intended to provide all information that brokers are required to disclose to their customers pursuant to the laws and regulations
applicable to the brokers. TFX reserves the right to change the contents of this publication without prior notice.

TOKYO FINANCIAL EXCHANGE INC./ OUTLOOK 2011

NEW MEASURES IN 2011

What we acheived in 2010.....

1. New Product: Euroyen 6-month LIBORTFX will be re-listing the LIBOR based Euroyen future infiscal 2011 in an effort to bolster market share in theinterest rate sector. As the TIBOR market has longsuffered under a dearth of volatility, this new product willmeet demand among market participants in the moreinternationally active and much larger LIBOR-based
interest rate swap market, offering speculative, hedging
and arbitrage opportunities. The primary distinction
between the current Euroyen future and the new LIBOR
Euroyen future is that the former is fixed on 3-month
TIBOR rates, while the latter will be fixed on 6-month
LIBOR.

2. Introduction of New Liquidity Provider Scheme
TFX will be introducing a volume incentive discountscheme for proprietary traders. New participants toTFX’s 3-month Euroyen Interest Rate futures market will
be eligible to apply for the scheme, which offers monthly
trading fee rebates. Rebates depend on the volume traded
and the term of the contract month. Trading in large
volumes and in far dated contract months will be heavily
discounted. Please get in touch for more details.

Welcomed First Remote Trading Member
Introduced New Specifications for O/N Call and
S/N Repo Futures
Launched New Products : Exchange Equity Index Margin
Contracts (Click Kabu 365)
Enhanced Connectivity Options: Proximity services(Partner with KVH)
Added New ISV Connectivity: Trading Technologies

2010 MARKET OVERVIEW
Due to continued uncertainties over global financial markets
and prolonged loose monetary policy, 2010 was a challenging
year for the TFX Interest Rate Futures markets. Total trading
volume for all the STIR products was 11,275,325, a 14%
decrease compared with the previous year.
In contrast, taking advantages of volatility in FX markets,
Exchange Forex Margin contracts (Click 365) finished 2010
with record trading volumes, reaching 109,935,079, an increaseof 55.8% from 2009.
Exchange Equity Index Margin contracts (Click Kabu 365)
launched in November achieved volumes of 67,691 contracts
despite the fact that there were only 30 trading days in 2010,highlighting the positive reception of the products from themarket participants.

3. Technology Enhancements
TFX will continue to move forward with its plan to create
secure, resilient and advanced exchange infrastructure,
catering to different trading strategies and types ofmarket participants. With this in mind, TFX has started
discussions with NYSE Euronext about a possible
network linkage between NYSE Euronext’s “Secure
Financial Transaction Infrastructure (SFTI®)” and TFX’s
network. If this linkage is realized, market participantsconnected to SFTI® will be able to trade TFX listed
products without establishing a new line to TFX, using
their SFTI® connection to NYSE Euronext derivatives
markets.

For more information
Institutional Marketing GroupTEL: +81 3 4578 2438
Email: marketing@tfx.co.jp
HP: www.tfx.co.jp/en2009 Volume

2010 Volume

STIR*
F&O

13,098,108(1,002,846)

11,275,325(1,174,991)

Yr on Yr

-45% (-26%)-14% (17%)

Forex Margin

70,579,936(607,600)

109,935,079(799,657)

Yr on Yr

63% (188%)

55.8% (32%)

Equity Index
Margin**-67,691(2,632)

Yr on Yr--Total

83,678,044(1,610,446)

121,278,095(1,977,280)

Yr on Yr

25% (2%)

44.9% (23%)( ) Open Interest*3-month Euroyen Futures and Options, Over-Night Call Rate
futures, Spot-Next Repo Rate Futures**Launched on 22 November 2010