[English Translation]

INSPECTION REGULATIONSTOKYO FINANCIAL EXCHANGE INC.

(This is an English translation of the Inspection Regulations, 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 Regulations shall be decided in accordance with the Japanese language text. Tokyo
Financial Exchange Inc. (“TFX”) assumes no responsibility for accuracy, correctness orcontents of this English text.)

Inspection Regulations

Table of Contents
Page
Article 1.

Purpose ............................................................................................................1

Article 2.

Inspector ..........................................................................................................1Article 3.

Types and Methods of Inspections .......................................................................1

Article 4.

Advance Notice of Inspection .............................................................................2

Article 5.

Inspector’s Authority .........................................................................................2

Article 6.

Inspector’s Confidentiality Obligation .................................................................2

Article 7.

Trading / Clearing Members’ Duty.....................................................................2

Article 8.

Presentation of Inspector Certificate ....................................................................2Article 9.

Measures Based on Inspection Findings...............................................................2Article 10. Notice of Inspection Findings .............................................................................2Article 11. Joint Inspection .................................................................................................3

SUPPLEMENTARY PROVISIONS...............................................................................................3

Inspection Regulations
Table of Contents

1Article 1.

Purpose

1.1
These Regulations set forth the matters necessary for inspection of a Trading
Member or Clearing Member (hereinafter collectively called “Trading/Clearing Member”)
conducted by the Exchange pursuant to Article 58 and Chapter IV of Part II of the Trading
Member Regulations and Article 14-6 and Section 5 of Chapter II of the Clearing
Regulations (hereinafter called “Inspection”) and the measures to be taken based on thefindings of the Inspection.
1.2
Amendments to these Regulations shall be effected by resolution of theSelf-regulatory committee, unless such amendment is not significant.
Article 2.

Inspector

The Exchange shall have Inspection conducted by a person designated by theExchange from its staff members (hereinafter called an “Inspector”). The Exchange may
allow an Inspector to use an assistant if the Exchange deems it necessary.
Article 3.
3.1

Types and Methods of Inspections

The types of Inspections shall be as listed below.
(1)

Regular Inspection
Inspection of overall operations for market derivatives transactions on theExchange Market by Trading/Clearing Members(2)

Inspection for confirmation
Inspection of a Trading/Clearing Member who has been required to makereporting under Article 68.2 of the Trading Member Regulations or Article
15-8.2 of the Clearing Regulations, to be conducted where necessary(3)Special Inspection
Inspection to be temporarily conducted, separately from Regular Inspection

3.2

The manners of Inspections shall be as set forth below.
(1)Documentary Inspection
Inspection of documents submitted by a Trading/Clearing Member to theExchange(2)

Field Inspection

Inspection Regulations1

Inspection to be conducted at a sales office or business office of a
Trading/Clearing MemberArticle 4.

Advance Notice of Inspection

If a Field Inspection is conducted, the Exchange shall notify the concerned
Trading/Clearing Member of its date and manner and the name of an Inspector in advance.
However, this advance notice may be omitted if the Exchange deems it necessary to refrainfrom making an advance notice.
Article 5.

Inspector’s Authority

An Inspector may require that the concerned Trading/Clearing Member present, or
make available for access, accounting books and documents and other objects or submit
information materials or give explanations on the concerned facts, if the Inspector
considers it necessary for the Inspection set forth in Article 1 hereof.
Article 6.

Inspector’s Confidentiality Obligation

An Inspector shall not divulge to any other person any secret that he/she may
become aware of in relation to the duties for Inspections nor fraudulently use such secret.
Article 7.

Trading / Clearing Members’ Duty

No Trading/Clearing Member shall unreasonably refuse a requirement made by an
Inspector under Article 5 hereof.
Article 8.

Presentation of Inspector Certificate

An Inspector shall present his/her inspector certificate to the concerned
Trading/Clearing Member before commencing his/her duties for Inspection.
Article 9.

Measures Based on Inspection Findings

If, as a result of any Inspection of a Trading/Clearing Member, the Exchange finds
an inconsequential flaw and considers such flaw to possibly give rise to violation of any
applicable law or any applicable regulation of the Exchange, even though such flaw does
not fall under the objects or events to which disciplinary measures, regulatory measures orrecommendations specified in Chapter IV of Part II of the Trading Member Regulations
or Section 5, Chapter II of the Clearing Regulations will be applied, the Exchange may
promote awareness by the concerned Trading/Clearing Member.
Article 10.

Notice of Inspection Findings

If and after an Inspection is finished, the Exchange shall notify the concerned
Trading/Clearing Member of the findings of the Inspection including the contents of themeasures to be taken based thereon.

Inspection Regulations
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Article 11.

Joint Inspection

The Exchange may conduct an Inspection in conjunction with the financial
instruments firms association.

SUPPLEMENTARY PROVISIONS
The amended Inspection Regulations shall take effect as from September 30, 2007.

Inspection Regulations
3