[English Translation]

ENFORCEMENT REGULATIONS FOR
TRADING MEMBER REGULATIONSTOKYO FINANCIAL EXCHANGE INC.

(This is an English translation of the Enforcement Regulations for Trading Member
Registrations, 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 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.)

Enforcement Regulations for Trading Member Regulations

Table of Contents
Page
CHAPTER I. DUTIES, ETC. OF TRADING MEMBERS ............................................... 1
Article 1. Purpose ..................................................................................................... 1
Article 2. Number of Member Link Agreements ..................................................... 1
Article 3. Notifiable Matters ..................................................................................... 1
Article 4. Qualifications, etc. for Registered Deputy Representative ...................... 1
Article 5. Payment Date for Exchange Fees ............................................................. 2
Article 6. Deadline for Depositing of Additional Portion of Market Entry Deposit 3
Article 7. Application for Deregistration of Trading Membership ........................... 3
Article 8. Member Link Agreements of Deregistration Applicant ........................... 3
Article 9. Trading ID Manager ................................................................................. 3
Article 10. Clearing ID Manager ................................................................................ 4
Article 11. Scope of Responsibility of Trading Officer.............................................. 4
Article 12. Scope of Responsibility of Clearing Officer ............................................ 5
Article 13. Scope of Responsibility of FX Officer ..................................................... 5
Article 13-2. Scope of Responsibility of Equity Index Officer................................... 6
Article 13-3. Scope of Responsibility of FX Clearing Officer ................................... 7
Article 14. Notification of Conclusion, etc. of Clearing Agreement .......................... 8
Article 14-2. Transfer of Unsettled FX Daily Futures Contracts between FX Market
Makers ............................................................................................................ 8
Article 14-3. Transfer of Unsettled Equity Index Daily Futures Contracts between
Equity Index Market Makers .......................................................................... 9
Article 14-4. Liquidation of Unsettled Contracts by FX Clearing Futures Trading
Member......................................................................................................... 11
CHAPTER II. TRADING MEMBERSHIP ..................................................................... 13
Article 15. Qualification Criteria for Trading Membership ..................................... 13
CHAPTER III. SELF-REGULATORY OPERATIONS ................................................... 38
Article 16. Application for Trading Membership ..................................................... 38
Article 17. Notifiable Matters ................................................................................... 39
Article 18. Reportable Matters ................................................................................. 39
Article 18-2. Notifiable Matters with Respect to Special Financial Instruments Firm,
etc. ............................................................................................................. 39
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Article 19. Financial Reporting ................................................................................ 41
Article 20. Procedures for Hearing ........................................................................... 41
SUPPLEMENTARY PROVISIONS ................................................................................... 42

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Table of Contents

CHAPTER I.
DUTIES, ETC. OF TRADING MEMBERS

Article 1.

Purpose

1.1
These Enforcement Regulations set forth the matters to be prescribed ordesignated by the Exchange pursuant to the Trading Member Regulations.
1.2
An amendment to any of the provisions of Chapter II hereof shall be effectedwith consent from the Self-regulatory Committee, and an amendment to any of theprovisions of Chapter III hereof shall be effected by a resolution of the Self-regulatory
Committee.

Article 2.

Number of Member Link Agreements

A Non-Clearing Member shall be allowed to enter into Member Link
Agreements set forth in Article 7.2 of the Trading Member Regulations with not morethan two (2) members of Linked Overseas Exchange.

Article 3.

Notifiable Matters

Each of the notifications or registrations to the Exchange set forth in Articles 8,
9 and 10 of the Trading Member Regulations shall be made in the prescribednotification/registration form accompanied by the documents deemed necessary by the
Exchange.

Article 4.
4.1

Qualifications, etc. for Registered Deputy Representative

When a Trading Member registers a Registered Deputy Representative set forth

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in Article 9.1 of the Trading Member Regulations, the Registered Deputy Representative
shall be elected from the Trading Member’s officers or employees supervising theoperations of the Trading Member or any other equivalent persons.
4.2
The routine operations set forth in Article 9.1 of the Trading Member
Regulations that can be delegated to a Registered Deputy Representative shall be aslisted in the following Items.
(1)

Operations concerning notifications in accordance with Article 10 of
the Trading Member Regulations(2)

Operations concerning reporting in accordance with Items (6), (7), (9),(13) and (14) of Article 56.1 of the Trading Member Regulations(3)

Operations concerning the conclusion of a Member Link Agreement(4)

Operations concerning the registration of a Trading Officer(5)

Operations concerning the registration of a Clearing Officer(6)

Operations concerning the registration of an FX Officer(7)

Operations concerning the registration of an Equity Index Officer(8)

Operations concerning the registration of an FX Clearing Officer(9)

Operations concerning the registration of a Trading ID Manager(10)

Operations concerning the registration of a Clearing ID Manager

Article 5.

Payment Date for Exchange Fees

The exchange fees set forth in Article 11.1 of the Trading Member Regulations
shall be paid to the Exchange by the date separately designated by the Exchange for eachtype of Trading Members.

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Article 6.

Deadline for Depositing of Additional Portion of Market Entry
Deposit

6.1
If a Trading Member depositing a Market Entry Deposit in accordance with
Article 12.1 of the Trading Member Regulations intends to launch Interest Rate Futurestransactions or FX Daily Futures transactions based on its Customers’ orders, theTrading Member shall deposit the additional portion of the Market Entry Deposit set
forth in Article 12.2 or 12.3 of the Trading Member Regulations with the Exchange by
the date of the launch of such transactions.
6.2
Notwithstanding the provision of Article 6.1 above, if a Trading Member which
is a Bridge Financial Institution, etc. intends to launch Interest Rate Futures transactions
or FX Daily Futures transactions based on its Customers’ orders, the Trading Member
shall deposit the additional portion of the Market Entry Deposit set forth in Article 12.2
or 12.3 of the Trading Member Regulations with the Exchange by the day designated by
the Exchange.

Article 7.

Application for Deregistration of Trading Membership

An application for deregistration of a trading membership set forth in Article 26of the Trading Member Regulations shall be made in the prescribed application form
accompanied by the documents deemed necessary by the Exchange.

Article 8.

Member Link Agreements of Deregistration Applicant

The condition to be separately prescribed by the Exchange as referred to in
Article 28.2 of the Trading Member Regulations shall refer to a situation where the
Exchange determines that it is not necessary to terminate the Member Link Agreement.

Article 9.
9.1

Trading ID Manager

An Interest Rate Futures Trading Member shall notify the Exchange of a person

in charge of the management of Trading IDs set forth in Article 48 of the Trading
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Member Regulations as the Trading ID Manager.
9.2
The Trading ID Manager shall conduct operations concerning the management
and application of Trading IDs.

Article 10.
10.1

Clearing ID Manager

An Interest Rate Futures Trading Member shall notify the Exchange of a person

in charge of the management of Clearing IDs set forth in Article 48 of the Trading
Member Regulations as the Clearing ID Manager.
10.2
The Clearing ID Manager shall conduct operations concerning the management
and application of Clearing IDs.

Article 11.

Scope of Responsibility of Trading Officer

The scope of operations under the responsibility of a Trading Officer to beprescribed by the Exchange pursuant to Article 49.2 of the Trading Member Regulations
shall be as listed in the following Items.
(1)

Operations concerning the cancellation of bids and offers in the case ofa failure in the Member’s terminal device used for Interest Rate Futurestransactions or in any other case(2)

Operations concerning the application for designation as Market Maker
in relation to Interest Rate Futures transactions and the registration of aMarket Making Operator and a Trading ID or Trading IDs used formarket making (provided, however, that a Trading Officer may cause aMarket Making Operator to conduct operations concerning theregistration of a Trading ID or Trading IDs used for market making)(3)

Operations concerning the application for Error Trade Correction, etc.
for Interest Rate Futures transactions

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Article 12.

Scope of Responsibility of Clearing Officer

The scope of operations under the responsibility of a Clearing Officer to beprescribed by the Exchange pursuant to Article 50.2 of the Trading Member Regulations
shall be as listed in the following Items.
(1)

Operations concerning reporting of positions and other numerical data
in relation to Interest Rate Futures contracts(2)

Operations concerning depositing, reimbursement, or balance
confirmation of Interest Rate Futures Market Entry Deposit, Exchange
Margin for Interest Rate Futures transactions, or Interest Rate Futures
Clearing Deposit(3)

Operations concerning request for temporary clearing service to be
performed by the Exchange in place of the Clearing Member in thecase of a failure in its Member’s terminal device used for Interest Rate
Futures transactions or in any other case

Article 13.

Scope of Responsibility of FX Officer

The scope of operations under the responsibility of an FX Officer to beprescribed by the Exchange pursuant to Article 50-2.2 of the Trading Member
Regulations shall be as listed in the following Items.
(1)

Operations concerning the cancellation of bids and offers in the case of
failure in the Member’s terminal device used for FX Daily Futurestransactions or in any other case(2)

Operations concerning the application for designation as FX Market
Maker and the registration of an FX Market-Making Operator(meaning the FX Market-Making Operator referred to in Article 14.1 of
the Market-Making Regulations for FX Daily Futures Transactions)(3)

Operations concerning the application for Error Trade Correction, etc.
for FX Daily Futures transactions

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(4)Operations concerning reporting of positions and other numerical data
in relation to FX Daily Futures contracts(5)

Operations
concerning
depositing,reimbursement,balanceconfirmation of FX Daily Futures Market Entry Deposit, FX Exchange
Margin, or Daily Futures Clearing Deposit(6)

Operations concerning request for temporary clearing service to be
performed by the Exchange in place of the FX Clearing Member in thecase of a failure in its Member’s terminal device used for FX Daily
Futures transactions or in any other case

(7)

Article 13-2.

Operations concerning applications, etc. for the management andmaintenance of the Member’s System used for FX Daily Futurestransactions

Scope of Responsibility of Equity Index Officer

The scope of operations under the responsibility of an Equity Index Officer tobe prescribed by the Exchange pursuant to Article 50-3.2 of the Trading Member
Regulations shall be as listed in the following Items.
(1)

Operations concerning the cancellation of bids and offers in the case of
failure in the Member’s terminal device used for Equity Index Daily
Futures transactions or in any other case(2)

Operations concerning the application for designation as an Equity
Index Market Maker and the registration of an Equity Index
Market-Making Operator (meaning the Equity Index Market-Making
Operator set forth in Article 12.1 of the Market-Making Regulations for
Equity Index Daily Futures Transactions)(3)

Operations concerning the application for Error Trade Correction, etc.
for Equity Index Daily Futures transactions

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(4)Operations concerning reporting of positions and other numerical data
in relation to Equity Index Daily Futures contracts(5)

Operations
concerning
depositing,reimbursement,balanceconfirmation of Equity Index Daily Futures Market Entry Deposit,
Equity Index Exchange Margin, or Daily Futures Clearing Deposit(6)

Operations concerning request for temporary clearing service to be
performed by the Exchange in place of the Equity Index Clearing
Member in the case of a failure in its Member’s terminal device used
for Equity Index Daily Futures transactions or in any other case

(7)

Article 13-3.

Operations concerning applications, etc. for the management andmaintenance of the Member’s System used for Equity Index Daily
Futures transactions

Scope of Responsibility of FX Clearing Officer

The scope of operations under the responsibility of an FX Clearing Officer to beprescribed by the Exchange pursuant to Article 50-4.2 of the Trading Member
Regulations shall be as listed in the following Items.
(1)

Operations concerning the cancellation of bids and offers in the case of
failure in the Member’s terminal device used for FX Clearing Futurestransactions or in any other case(2)

Operations concerning reporting of positions and other numerical data
in relation to FX Clearing Futures contracts(3)

Operations
concerning
depositing,reimbursement,balanceconfirmation of FX Clearing Market Entry Deposit, FX Clearing
Exchange Margin, or FX Clearing Futures Clearing Deposit(4)

Operations concerning request for temporary clearing service to be
performed by the Exchange in place of the FX Clearing Futures
Trading Member in the case of a failure in its Member’s terminal

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device used for FX Clearing Futures transactions or in any other case
(5)

Article 14.

Operations concerning applications, etc. for the management andmaintenance of the Member’s System used for FX Clearing Futurestransactions

Notification of Conclusion, etc. of Clearing Agreement

The notification of the conclusion or amendment of a Clearing Agreement
pursuant to Article 25.6 of the Trading Member Regulations shall be made in theprescribed notification form accompanied by the documents deemed necessary by the
Exchange. In principle, a Non-Clearing Member shall be allowed to enter into a Clearing
Agreement with only one Interest Rate Futures Clearing Member for each type thereof.

Article 14-2.

Transfer of Unsettled FX Daily Futures Contracts between FX
Market Makers

14-2.1 If the Exchange imposes the regulatory measures set forth in Article 63.1 of theTrading Member Regulations or the disciplinary measures set forth in Article 66.1 of thesame regulations on the FX Daily Futures Clearing Member designated as an FX Market
Maker and, pursuant to Article 38.1 of the same regulations, the Exchange causes to betransferred to any other FX Daily Futures Clearing Member designated as an FX Market
Maker (hereinafter referred to as the “FX Market Maker Not Subject to Measures” inthis Article) any of the unsettled FX Daily Futures contracts executed by the businessconducted by such FX Daily Futures Clearing Member (hereinafter referred to as the“FX Market Maker Subject to Measures” in this Article) in order to perform its
obligations to quote an MM bid or offer, the price for such transfer (hereinafter referred
to as the “MM Position Transfer Price” in this Article) and the volume of the unsettled
FX Daily Futures contracts to be transferred to one FX Market Maker Not Subject to
Measures (hereinafter referred to as the “MM Position Transfer Volume” in this Article)
shall be determined by the Exchange in the manner set forth below respectively.
(1)

MM Position Transfer Price shall be a price deemed appropriate by the
Exchange for each type of FX Daily Futures contracts, taking into
consideration the foreign exchange rates on a trading day whose

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opening time of the Market Trading Period of the relevant type of FX
Daily Futures contracts falls on the first business day following the dayon which the regulatory measures set forth in Article 63.1 of theTrading Member Regulations or the disciplinary measures set forth in
Article 66.1 of the same regulations was imposed on the FX Market
Maker Subject to Measures; and(2)

MM Position Transfer Volume shall be a volume of the unsettled FX
Daily Futures contracts with respect to each type of FX Daily Futurestransactions divided by the number of FX Market Makers Not Subject
to Measures who are obliged to quote an MM bid or offer with respect
to such FX Daily Futures transactions.

14-2.2 Any matters deemed necessary by the Exchange in connection with thecalculation of MM Position Transfer Volume shall be prescribed by the Exchange fromtime to time.
14-2.3 If the Exchange judges that it is not appropriate to determine the MM Position
Transfer Price in the manner set forth in Article 14-2.1 (1) above, the Exchange shalldetermine the MM Position Transfer Price in a manner deemed appropriate by the
Exchange from time to time.
14-2.4 If the Exchange judges that it is not appropriate to determine the MM Position
Transfer Volume in the manner set forth in Article 14-2.1 (2) above, the Exchange shalldetermine the MM Position Transfer Volume in a manner deemed appropriate by the
Exchange from time to time.

Article 14-3.

Transfer of Unsettled Equity Index Daily Futures Contracts
between Equity Index Market Makers

14-3.1 If the Exchange imposes the regulatory measures set forth in Article 63.1 of theTrading Member Regulations or the disciplinary measures set forth in Article 66.1 of thesame regulations on the Equity Index Daily Futures Clearing Member, etc. designated as
an Equity Index Market Maker and, pursuant to Article 38.1 of the same regulations, theExchange causes to be transferred to any other Equity Index Daily Futures Clearing
Member, etc. designated as an Equity Index Market Maker (hereinafter referred to as theEnforcement Regulations for
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9“Equity Index Market Maker Not Subject to Measures” in this Article) any of theunsettled Equity Index Daily Futures contracts executed by the business conducted bysuch Equity Index Daily Futures Clearing Member, etc. (hereinafter referred to as the“Equity Index Market Maker Subject to Measures” in this Article) in order to perform its
obligations to quote an MM bid or offer, the price for such transfer (hereinafter referred
to as the “MM Position Transfer Price” in this Article) and the volume of the unsettled
Equity Index Daily Futures contracts to be transferred to one Equity Index Market
Maker Not Subject to Measures (hereinafter referred to as the “MM Position Transfer
Volume” in this Article) shall be determined by the Exchange in the manner set forth
below respectively.
(1)

MM Position Transfer Price shall be a price deemed appropriate by the
Exchange for each issue of Equity Index Daily Futures contracts,
taking into consideration the prices, etc. of the equity index tradedunder such Equity Index Daily Futures contracts on a trading day
whose opening time of the Market Trading Period of the relevant typeof Equity Index Daily Futures contracts falls on the first business day
following the day on which the regulatory measures set forth in Article
63.1 of the Trading Member Regulations or the disciplinary measures
set forth in Article 66.1 of the same regulations was imposed on the
Equity Index Market Maker Subject to Measures; and(2)

MM Position Transfer Volume shall be a volume of the unsettled
Equity Index Daily Futures contracts with respect to each issue of
Equity Index Daily Futures transactions divided by the number of
Equity Index Market Makers Not Subject to Measures who are obliged
to quote an MM bid or offer with respect to such Equity Index Daily
Futures transactions.

14-3.2 Any matters deemed necessary by the Exchange in connection with thecalculation of MM Position Transfer Volume shall be prescribed by the Exchange fromtime to time.
14-3.3 If the Exchange judges that it is not appropriate to determine the MM Position
Transfer Price in the manner set forth in Article 14-3.1 (1) above, the Exchange shalldetermine the MM Position Transfer Price in a manner deemed appropriate by the
Exchange from time to time.
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14-3.4 If the Exchange judges that it is not appropriate to determine the MM Position
Transfer Volume in the manner set forth in Article 14-3.1 (2) above, the Exchange shalldetermine the MM Position Transfer Volume in a manner deemed appropriate by the
Exchange from time to time.

Article 14-4.

Liquidation of Unsettled Contracts by FX Clearing Futures
Trading Member

14-4.1 If the Exchange imposes the regulatory measures set forth in Article 63.1 of theTrading Member Regulations or the disciplinary measures set forth in Article 66.1 of thesame regulations on the FX Clearing Futures Trading Member and, pursuant to Article
38.1 of the same regulations, the Exchange causes such FX Clearing Futures Trading
Member (hereinafter referred to as the “FX Clearing Futures Trading Member Subject to
Measures” in this Article) to liquidate the unsettled FX Clearing Futures contracts
executed at the bids or offers submitted by such FX Clearing Futures Trading Member
Subject to Measures (hereinafter referred to as the “Unsettled FX Clearing Futures
Contracts” in this Article) as deemed necessary by the Exchange, the Exchange shallcause the FX Clearing Futures Trading Member Subject to Measures to resell or
repurchase all the Unsettled FX Clearing Futures Contracts (hereinafter referred to as the“Liquidation Transaction”) for its own account in order to liquidate such Unsettled FX
Clearing Futures Contracts in the manner set forth below.
(1)

For each type of Unsettled FX Clearing Futures Contract, the Exchange
shall designate an LP Trading Member (limited to those who have filed
the notification pursuant to the provisions of Article 12 of the FX
Clearing Special Provisions for such type of FX Clearing Futurescontracts) as a counterparty of the Liquidation Transaction (suchdesignated LP Trading Member shall be hereinafter referred to as the“Designated LP Trading Member”).

(2)

The Exchange shall notify the Designated LP Trading Members of thevolume of each type of Unsettled FX Clearing Futures Contracts
divided by the number of Designated LP Trading Members (hereinafterreferred to as the “Liquidation Volume”).

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(3)

Upon receipt of such notice, the Designated LP Trading Member shallpromptly quote a price appropriate for the Liquidation Transaction(hereinafter referred to as the “Liquidation Price”) to the Exchange inlight of the then current foreign exchange rates. In such case, theDesignated LP Trading Member shall submit the materials evidencing
the appropriateness of the Liquidation Price to the Exchange inaccordance with the Close-out Amount method specified in 2002 ISDA
Master Agreement published by International Swaps and Derivatives
Association, Inc. in 2003.

(4)

The Exchange shall cause the Liquidation Transaction to be executed in
the relevant Liquidation Volume at the Liquidation Price as specified in
Article 14-4.1(3) above with respect to the Unsettled FX Clearing
Futures Contracts of the FX Clearing Futures Trading Member Subject
to Measures with each Designated LP Trading Member as acounterparty.

14-4.2 Any matters deemed necessary by the Exchange in connection with thecalculation of Liquidation Volume shall be prescribed by the Exchange from time totime.
14-4.3 If the Exchange judges that it is not appropriate to determine the Liquidation
Volume in the manner set forth in Article 14-4.1 (2) above, the Exchange shall determine
the Liquidation Volume in a manner deemed appropriate by the Exchange from time totime.
14-4.4 If the Exchange judges that it is not appropriate to determine the Liquidation
Price in the manner set forth in Article 14-4.1 (3) above such as in the case where theLiquidation Price quoted by the Designated LP Trading Member is judged as being
significantly different from the prevailing foreign exchange rates or the Designated LP
Trading Member fails to evidence the appropriateness of the Liquidation Price, and soon, the Exchange may determine the Liquidation Price in a manner deemed appropriateby the Exchange from time to time.

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CHAPTER II.
TRADING MEMBERSHIP

Article 15.

Qualification Criteria for Trading Membership

15.1
The examination as to a Japanese Yen Interest Rate Trading Membership and a
Yen Interest Swap Futures Trading Membership as referred to in Article 53.2 of theTrading Member Regulations shall be conducted in terms of the criteria set forth in therespective Items below.
(1)

Geographic basis
The applicant shall have an office or branch in Japan that is engaged inmarket derivative transactions on the Exchange’s market.

(2)

Expected minimum trading volume
The expected annual trading volume of the applicant shall be not lessthan 12,000 units.

(3)

Personnel
The applicant shall be required to satisfy the criterion of (a) below andany one of the criteria of (b) to (d) below.
(a)

The applicant is: (i) a financial instruments firm (as specified
in Paragraph 9 of Article 2 of the Financial Instruments andExchange Act (Act No. 25 of 1948; hereinafter called the“Act” in this Article); the same shall apply in this Article) andcategorized as a second financial instruments business
operator (or an operator of the second financial instruments
business and securities, etc. management business, if theapplicant intends to conduct market derivatives transactions
based on its Customers’ orders); (ii) an exchange licensed
firm approved to conduct market derivative transactions on the
Exchange’s market under Paragraph 1 of Article 60 of the Act;or (iii) a registered financial institution (as specified in
Paragraph 11 of Article 2 of the Act; the same shall apply in

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this Article).
(b)

The applicant is continuously engaged in transactions, etc.
similar to market derivatives transactions as a trading memberof an exchange operating such transactions, etc.

(c)

The applicant constantly employs more than one person
having professional experience of transactions, etc. similar tomarket derivatives transactions as a trading member of an
exchange operating such transactions, etc. or as an employeeof any such exchange.

(d)

(4)

The applicant is a person conducting foreign exchange futurestransactions similar to market derivatives transactions for abusiness purpose or conducting brokerage, intermediary oragency business for such foreign exchange futurestransactions.

Financial resources
The applicant shall be required to satisfy all of the following criteria.
(a)

As a financial instruments firm, as an exchange licensed firm,or as a registered financial institution, the applicant satisfies
the conditions as to the amount of its stated capital and others
as specified in the Act.

(b)

The net assets-capital ratio of the applicant is nearly one
hundred percent (100%) or more.

(c)

The applicant is likely to maintain stable profitability.

15.2
The examination as to an FX Daily Futures Trading Membership referred to in
Article 53.2 of the Trading Member Regulations shall be conducted in accordance withthe criteria set forth in Articles 15.3 and 15.4 below.
15.3

The applicant shall be required to satisfy all of the following criteria:

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(1)

Geographic basis:
The applicant shall have an office or branch in Japan that is engaged inmarket derivatives transactions on the Exchange Market.

(2)

Expected minimum trading volume:
The expected annual trading volume of the applicant shall be not lessthan 120,000.

(3)

Personnel:(a)

The applicant is a registered financial instruments firm,categorized as a second financial instruments business
operator (or an operator of the second financial instruments
business and securities, etc. management business, if theapplicant intends to conduct market derivatives transactions
based on its Customers’ orders), or a registered financial

institution.
(b)

(4)

In the light of its personnel, the applicant has knowledge andcapacity enough to perform its business as an FX Daily
Futures Trading Member, and having sufficient social credit.

Financial resources:(a)

The capital of the applicant is 300 million yen or more.

(b)

The net assets of the applicant are 2 billion yen or more(provided, however, that this criterion shall not apply if the
Exchange finds otherwise that the equivalent level such as thisis satisfied in substance).

(c)

In the case of a financial instruments firm, the Capital-to-Risk
Ratio defined in Article 46-6.1 of the Act is two hundred
percent (200%) or more.

(d)

The applicant is likely to maintain stable profitability as a
Trading Member.

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(e)

In the case of a special financial instruments firm (meaning
only a special financial instruments firm (tokubetsu kinyu’ushouhin torihiki gyousha) set forth in Article 57-2.2 of the Act;
which files the notification under Article 57-5.2 of the Act; the
same
shall
apply
hereinafter),theConsolidated
Capital-to-Risk Ratio calculated by the method set forth in
Article 2 of the Financial Services Agency Notification No.
128 of 2010 (hereinafter called the “Consolidated
Capital-to-Risk Ratio on Downstream Consolidation”) is two
hundred percent (200%) or more.

(f)

In the case of a designated special financial instruments firm(meaning a designated special financial instruments firm
(taishou tokubetsu kinyu’u shouhin torihiki gyousha) set forthin Paragraph 3 of Article 57-12 of the Act; the same shallapply hereinafter), in relation to the Consolidated
Capital-to-Risk Ratio set forth in Article 2 of the Financial
Services Agency Notification No. 130 of 2010 (hereinafter
called the “Consolidated Capital-to-Risk Ratio on Uniform
International Standards”), the “Consolidated Common Equity
Tier 1 Capital Ratio” set forth in Item 1 of the same Article 2(hereinafter called the “Consolidated Common Equity Tier 1
Capital Ratio”) is four point five percent (4.5%) or more andthe “Consolidated Tier 1 Capital Ratio” set forth in Item 2
thereof (hereinafter called the “Consolidated Tier 1 Capital
Ratio”) is six percent (6%) or more and the consolidated total
Capital-to-Risk Ratio set forth in Item 3 thereof (hereinafter
called the “Total Consolidated Capital-to-Risk Ratio”) is eightpercent (8%) or more, or the Consolidated Capital-to-Risk
Ratio calculated by the method set forth in Article 4 thereof(hereinafter called the “Consolidated Capital-to-Risk Ratio on
Sample Downstream Consolidation”) is two hundred percent(200%) or more.

(g)

In the case of a registered financial institution subject toUniform International Standards (meaning a registered

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financial institution set forth in Article 1(10)-2 of the Financial
Services Agency Notification No.19 of 2006; the same shallapply hereinafter, “Consolidated Common Equity Tier1
Capital Ratio” set forth in the same Article 2(1) being not lessthan four point five percent (4.5%) and “Consolidated Tier1
Capital Ratio” set forth in Article 2(2) thereof being not lessthan six percent (6%) and “Consolidated Total Capital Ratio”
set forth in Article 2(3) thereof being not less than eightpercent (8%), or “Non-consolidated Common Equity Tier1
Capital Ratio” set forth in Article 14(1) thereof being not lessthan four point five percent (4.5%) and “Non-consolidated
Tier1 Capital Ratio” set forth in Article 14(2) being not lessthan six percent (6%) and “Non-consolidated Total Capital
Ratio” set forth in Article 14(3) thereof being not less thaneight percent (8%);(h)

In the case of a financial institution subject to JapaneseStandard (meaning a financial institution subject to JapaneseStandard set forth in Article 1 (10)-3 of the Financial Services
Agency Notification No.19 of 2006; the same shall apply
hereinafter), “Consolidated Capital Adequacy Ratio” set forthin the same Article 25 being not less than four percent (4%), or“Non-consolidated Capital Adequacy Ratio” set forth in
Article 37 thereof being not less than four percent (4%);(i)

In the case of The Norinchukin Bank, “Consolidated Common
Capital Contribution Tier1 Ratio” set forth in Article 2(1) of
the Financial Services Agency and Ministry of Agriculture,
Forestry and Fisheries Notification No.4 of 2006 being notless than four point five percent (4.5%) and “Consolidated
Tier1 Capital Ratio” set forth in Article 2(2) thereof being notless than six percent (6%) and “Consolidated Total Capital
Ratio” set forth in Article 2(3) thereof being not less than eightpercent (8%), or “Non-consolidated Common Capital
Contribution Tier1 Ratio” set forth in Article 14(1) thereof
being not less than four point five percent (4.5%) and“Non-consolidated Tier1 Capital Ratio” set forth in Article

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14(2) being not less than six percent (6%) and“Non-consolidated Total Capital Ratio” set forth in Article
14(3) thereof being not less than eight percent (8%);(j)

in the case of Shinkin Central Bank (meaning a shinkin bankfederation subject to Uniform International Standards set forthin Article 1(9)-3 of the Financial Services Agency Notification
No.19 of 2006; the same shall apply hereinafter),“Consolidated Common Capital Contribution Tier1 Ratio” set
forth in Article 19(1) of the Financial Services Agency
Notification No.21 of 2006 being not less than four point five
percent (4.5%) and “Consolidated Tier1 Capital Ratio” set
forth in Article 19(2) thereof being not less than six percent(6%) and “Consolidated Total Capital Ratio” set forth in
Article 19(3) thereof being not less than eight percent (8%), or“Non-consolidated Common Capital Contribution Tier1
Ratio” set forth in Article 31(1) thereof being not less thanfour point five percent (4.5%) and “Non-consolidated Tier1
Capital Ratio” set forth in Article 31(2) being not less than six
percent (6%) and “Non-consolidated Total Capital Ratio” set
forth in Article 31(3) thereof being not less than eight percent
(8%);

(k)

In the case of a shinkin bank subject to Japanese Standard(meaning a shinkin bank subject to Japanese Standard set forthin Article 1 (9)-2 of the Financial Services Agency
Notification No.21 of 2006; the same shall apply hereinafter),“Consolidated Capital Adequacy Ratio” set forth in the same
Article 2 being not less than four percent (4%), or“Non-consolidated Capital Adequacy Ratio” set forth in
Article 11 thereof being not less than four percent (4%);(l)

In the case of The Shoko Chukin Bank, Ltd. “Consolidated
Common Equity Tier1 Capital Ratio” set forth in Article 2(1)of the Financial Services Agency and Ministry of Finance andMinistry of Economy, Trade and Industry Notification No.2 of2008 being not less than four point five percent (4.5%) and

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“Consolidated Tier1 Capital Ratio” set forth in Article 2(2)thereof being not less than six percent (6%) and “Consolidated
Total Capital Ratio” set forth in Article 2(3) thereof being notless than eight percent (8%), or “Non-consolidated Common
Equity Tier1 Capital Ratio” set forth in Article 14(1) thereof
being not less than four point five percent (4.5%) and“Non-consolidated Tier1 Capital Ratio” set forth in Article
14(2) being not less than six percent (6%) and“Non-consolidated Total Capital Ratio” set forth in Article
14(3) thereof being not less than eight percent (8%); and(m)

In the case of a foreign bank (meaning a foreign bank set forthin Article 10.2(8) of the Banking Act (Act No.59, 1981); thesame shall apply hereinafter), the requirements equivalent tothose set forth in Article 15.3(4)(g).

15.4
The applicant having net assets of less than 2 billion yen shall satisfy all of thefollowing criteria:(1)

Geographic basis:
The applicant shall have an office or branch in Japan that is engaged inmarket derivatives transactions on the Exchange Market.

(2)

Expected minimum trading volume:
The expected annual trading volume of the applicant shall be not lessthan 120,000.

(3)

Personnel:(a)

The applicant is a registered financial instruments firm,categorized as a second financial instruments business
operator (or an operator of the second financial instruments
business and securities, etc. management business, if theapplicant intends to conduct market derivatives transactions
based on its Customers’ orders), or a registered financial

institution.

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(4)

(b)

In the light of its personnel, the applicant has knowledge andcapacity enough to perform its business as an FX Daily
Futures Trading Member, and having sufficient social credit.

(c)

The applicant constantly employs in Japan more than one
person having three (3) years or longer professional
experience in market derivatives transactions, etc.

Financial resources:(a)

The capital of the applicant is 300 million yen or more.

(b)

In the case of a financial instruments firm, the Capital-to-Risk
Ratio defined in Paragraph 1 of Article 46-6 of the Act is two
hundred percent (200%) or more.

(c)

The applicant is likely to maintain stable profitability as a
Trading Member.

(d)

In the case of a special financial instruments firm, theConsolidated Capital-to-Risk Ratio on Downstream
Consolidation is two hundred percent (200%) or more.

(e)

In the case of a designated special financial instruments firm,in relation to the Consolidated Capital-to-Risk Ratio on
Uniform International Standards, the Consolidated Common
Equity Tier 1 Capital Ratio is four point five percent (4.5%) or
more, and the Consolidated Tier 1 Capital Ratio is six percent(6%) or more, and the Total Consolidated Capital-to-Risk
Ratio is eight percent (8%) or more, or the Consolidated
Capital-to-Risk Ratio on Sample Downstream Consolidationis two hundred percent (200%) or more.

(f)

In the case of a registered financial institution subject toUniform International Standards, the requirements areequivalent to those set forth in Article 15.3(4)(g);Enforcement Regulations for
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(g)

In the case of a financial institution subject to JapaneseStandard, the requirements are equivalent to those set forth in
Article 15.3(4)(h);(h)

In the case of The Norinchukin Bank, the requirements areequivalent to those set forth in Article 15.3(4)(i);(i)

In the case of Shinkin Central Bank, the requirements areequivalent to those set forth in Article 15.3(4)(j);(j)

In the case of a shinkin bank subject to Japanese Standard, therequirements are equivalent to those set forth in Article
15.3(4)(k);(k)

In the case of The Shoko Chukin Bank, Ltd., the requirements
are equivalent to those set forth in Article 15.3(4)(l);(l)

In the case of a foreign bank, the requirements are equivalent
to those set forth in Article 15.3(4)(m).

(m)

The applicant obtains or has obtained the guarantee by its
parent company (meaning an entity holding a majority of thevoting rights of all shareholders of the trading membership
applicant; the same shall apply in Article 15.7 (3) (g), Article
15.11 (3) (e), Article 15.14 (4) (m) and Article 15.17 (4) (m))
who satisfies the criteria (a), (b) and (d) or (e) above and islikely to maintain stable profitability with the net assets of 3
billion yen or more, provided, however, the parent company
shall be experienced in the field of financial business ingeneral.

15.5
The examination as to Equity Index Daily Futures Trading Membership as
referred to Article 53.2 of the Trading Member Regulations shall be conducted in termsof the criteria set forth in the Articles 15.6 and 15.7 below.
15.6

The applicant shall be required to satisfy all of the following criteria.

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(1)

Geographic basis
The applicant shall have an office or branch in Japan that is engaged inmarket derivative transactions on the Exchange’s market.

(2)

Personnel
The applicant shall satisfy all of the following criteria.
(a)

The applicant is (i) a financial instruments firm andcategorized as a first financial instruments business operator;or (ii) an exchange licensed firm approved to conduct Equity
Index Daily Futures transactions under Paragraph 1 of Article
60 of the Act.

(3)

(b)

In the light of its personnel, the applicant has knowledge andcapacity enough to perform its business as an Equity Index
Daily Futures Trading Member and retains sufficient social
credit.

(c)

If the applicant is a financial instruments firm, it shall be amember of Investor Protection Fund.

Financial resources
The applicant shall satisfy all of the following criteria.
(a)

The capital of the applicant is 300 million yen or more.

(b)

The net assets of the applicant are 2 billion yen or more.

(c)

The Capital-to-Risk Ratio of the applicant is two hundred
percent (200%) or more.

(d)

The applicant is likely to maintain stable profitability as a
Trading Member.

(e)

In the case of a special financial instruments firm
Consolidated Capital-to-Risk Ratio on Downstream
Consolidation) is two hundred percent (200%) or more

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(f)

In the case of a designated special financial instruments firm,in relation to the Consolidated Capital-to-Risk Ratio on
Uniform International Standards, “the Consolidated Common
Equity Tier 1 Capital Ratio is four point five percent (4.5%) or
more and the Consolidated Tier 1 Capital Ratio is six percent(6%) or more and the Total Consolidated Capital-to-Risk
Ratio is eight percent (8%) or more, or the Consolidated
Capital-to-Risk Ratio on Sample Downstream Consolidationis two hundred percent (200%) or more.

15.7
The applicant having net assets of less than 2 billion yen shall satisfy all of thefollowing criteria:(1)

Geographic basis
The applicant shall have an office or branch in Japan that is engaged inmarket derivative transactions on the Exchange’s market.

(2)

Personnel
The applicant shall satisfy all of the following criteria.

(3)

(a)

The applicant is (i) a financial instruments firm andcategorized as a first financial instruments business operator;or (ii) an exchange licensed firm approved to conduct Equity
Index Daily Futures transactions under Paragraph 1 of Article
60 of the Act.

(b)

In the light of its personnel, the applicant has knowledge andcapacity enough to perform its business as an Equity Index
Daily Futures Trading Member and retains sufficient social
credit.

(c)

If the applicant is a financial instruments firm, it shall be amember of Investor Protection Fund.

Financial resources
The applicant shall satisfy all of the following criteria:

Enforcement Regulations for
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(a)

The capital of the applicant is 300 million yen or more.

(b)(Deleted)(c)

The Capital-to-Risk Ratio of the applicant is two hundred
percent (200%) or more.

(d)

The applicant is likely to maintain stable profitability as a
Trading Member.

(e)

The Consolidated Capital-to-Risk Ratio on Downstream
Consolidation of the applicant which is a special financial
instruments firm is two hundred percent (200%) or more.

(f)

In the case of a designated special financial instruments firm,in relation to the Consolidated Capital-to-Risk Ratio on
Uniform International Standards, the Consolidated Common
Equity Tier 1 Capital Ratio is four point five percent (4.5%) or
more and the Consolidated Tier 1 Capital Ratio is six percent(6%) or more and the Total Consolidated Capital-to-Risk
Ratio is eight percent (8%) or more, or the Consolidated
Capital-to-Risk Ratio on Sample Downstream Consolidationis two hundred percent (200%) or more.

(g)

The applicant obtains or has obtained the guarantee by its
parent company who satisfies the criteria (a), (c) and (e) or (f)above and is likely to maintain stable profitability with the net
assets of 3 billion yen or more, provided, however, the parent
company shall be experienced in the field of financial businessin general.

15.8
The examination as to a Japanese Yen Interest Rate Remote Trading
Membership as referred to in Article 53.2 of the Trading Member Regulations shall be
conducted in terms of the criteria set forth in the respective Items below.
(1)

Geographic basis

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24

The applicant shall be required to satisfy all of the following criteria.
(a)

The applicant has an office or branch engaged in market
derivative transactions on the Exchange’s market and locatedin a foreign country deemed appropriate by the Exchange.

(b)

The applicant does not have an office or branch engaged inmarket derivative transactions on the Exchange’s market in
Japan.

(2)

Expected minimum trading volume
The expected annual trading volume of the applicant shall be not lessthan 12,000 units.

(3)

Personnel
The applicant shall be required to satisfy the criterion of (a) below andany one of the criteria of (b) to (d) below.
(a)

The applicant is an exchange licensed firm approved to
conduct market derivative transactions on the Exchange’s
market under Paragraph 1 of Article 60 of the Act.

(b)

The applicant is continuously engaged in transactions, etc.
similar to market derivatives transactions as a trading memberof an exchange operating such transactions, etc.

(c)

The applicant constantly employs more than one person
having professional experience of transactions, etc. similar tomarket derivatives transactions as a trading member of an
exchange operating such transactions, etc. or as an employeeof any such exchange.

(d)

The applicant is a person conducting foreign exchange futurestransactions similar to market derivatives transactions for abusiness purpose or conducting brokerage, intermediary oragency business for such foreign exchange futurestransactions.

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(4)

(5)

Financial resources
The applicant shall be required to satisfy all of the following criteria.
(a)

As a financial instruments firm, as an exchange licensed firm,or as a registered financial institution, the applicant satisfies
the conditions as to the amount of its stated capital and others
as specified in the Act.

(b)

The net assets-capital ratio of the applicant is nearly one
hundred percent (100%) or more.

(c)

The applicant is likely to maintain stable profitability.

If the applicant intends to receive orders from its Customers for market
derivative transactions on the Exchange’s market exclusively throughits specific office or branch, the applicant shall be required to satisfy
either of the following criteria.
(a)

The registration, notification, or other arrangement of thespecific office or branch as aforesaid has been duly made as
required by the competent regulatory authority of the country
where the office or branch is located.

(b)

The office or branch is a member of a self-regulatoryorganization in the country where the office or branch islocated.

15.9
The examination as to an Equity Index Daily Futures Remote Trading Member
as referred to Article 53.2 of the Trading Member Regulations shall be conducted interms of the criteria set forth in the Article 15.10 and Article 15.11 below.
15.10

The applicant shall be required to satisfy all of the following criteria.
(1)

Geographic basis
The applicant shall be required to satisfy all of the following criteria.

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(2)

(3)

(a)

The applicant shall have an office or branch that is engaged inmarket derivative transactions in a foreign country deemed
appropriate by the Exchange.

(b)

The applicant shall not have an office or branch in Japan thatis engaged in market derivative transactions.

Personnel
The applicant shall satisfy all of the following criteria.
(a)

The applicant is an exchange licensed firm approved to
conduct market derivative transactions under Paragraph 1 of
Article 60 of the Act.

(b)

In the light of its personnel, the applicant has knowledge andcapacity enough to perform its business as an Equity Index
Daily Futures Remote Trading Member and retains sufficientsocial credit.

Financial resources
The applicant shall satisfy all of the following criteria.
(a)

The capital of the applicant is 300 million yen or more.

(b)

The net assets of the applicant are 2 billion yen or more.

(c)

The Capital-to-Risk Ratio of the applicant is two hundred
percent (200%) or more.

(d)

(4)

The applicant is likely to maintain stable profitability as a
Trading Member.

If the applicant intends to accept its Customer’s order for Equity Index
Daily Futures transactions at a specified office or branch, it shall be
required to satisfy any one of the criteria below.
(a)

The relevant office or branch shall have completed

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registration, filing or any other proceedings stipulated by theregulatory authority of the country in which it is located.
(b)

The relevant office or branch shall be a member of an investor
protection fund in the country in which it is located.

15.11 The applicant shall have the net assets of less than 2 billion yen and satisfy allof the following criteria.
(1)

(2)

Geographic basis
The applicant shall be required to satisfy all of the following criteria.
(a)

The applicant shall have an office or branch that is engaged inmarket derivative transactions in a foreign country deemed
appropriate by the Exchange.

(b)

The applicant shall not have an office or branch in Japan thatis engaged in market derivative transactions.

Personnel
The applicant shall satisfy all of the following criteria.
(a)

The applicant is an exchange licensed firm approved to
conduct Equity Index Daily Futures transactions underParagraph 1 of Article 60 of the Act.

(b)

In the light of its personnel, the applicant has knowledge andcapacity enough to perform its business as an Equity Index
Daily Futures Remote Trading Member and retains sufficientsocial credit.

(3)

Financial resources
The applicant shall satisfy all of the following criteria.
(a)

The capital of the applicant is 300 million yen or more.

(b)(Deleted)

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(c)

The Capital-to-Risk Ratio of the applicant is two hundred
percent (200%) or more.

(d)

The applicant is likely to maintain stable profitability as a
Trading Member.

(e)

The applicant obtains or has obtained the guarantee by its
parent company who satisfies the criteria (a) and (c) above andis likely to maintain stable profitability with the net assets of 3
billion yen or more, provided, however, the parent company
shall be experienced in the field of financial business ingeneral.

(4)

If the applicant intends to accept its Customer’s order for Equity Index
Daily Futures transactions at a specific office or branch, it shall be
required to satisfy any one of the criteria below.
(a)

The relevant office or branch shall have completed
registration, filing or any other proceedings stipulated by theregulatory authority of the country in which it is located.

(b)

The relevant office or branch shall be a member of an investor
protection fund in the country in which it is located.

15.12 The examination as to an FX Broker Trading Membership referred to in Article
53.2 of the Trading Member Regulations shall be conducted in accordance with thecriteria set forth in Articles 15.13 and 15.14 below.
15.13

The applicant shall be required to satisfy all of the following criteria:(1)

Geographic basis
The applicant shall have an office or branch in Japan that is engaged inmarket derivatives transactions on the Exchange Market.

(2)

Clearing membership
obtaining an FX Clearing Futures Clearing Membership.

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(3)

Personnel(a)

The applicant is a registered financial instruments firm,categorized as a first financial instruments business operator
and a second financial instruments business operator or aregistered financial institution.

(b)

The applicant has engaged in Specified Currency-RelatedOver-The-Counter Derivative Transactions (meaning thespecified currency-related over-the-counter derivativetransactions defined in Article 117, paragraph (1), item (xxxix)
of the Cabinet Office Order on Financial Instruments Business(Cabinet Office Order No. 52 of 2007); the same shall apply
hereinbelow) with customers as counterparties.

(c)

The applicant is able to designate two or more LP Trading
Members as its counterparties for each type of FX Clearing
Futures transactions with respect to which the applicant files a
notification with the Exchange pursuant to Article 12.1 of the
FX Clearing Special Provisions.

(d)

(4)

In the light of its personnel, the applicant has knowledge andcapacity enough to perform its business as an FX Broker
Trading Member, and having sufficient social credit.

Financial resources(a)

The capital of the applicant is 300 million yen or more.

(b)

The net assets of the applicant are 2 billion yen or more.

(c)

In the case of a financial instruments firm, the Capital-to-Risk
Ratio is two hundred percent (200%) or more.

(d)

The applicant is likely to maintain stable profitability as a
Trading Member.

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(e)

In the case of a special financial instruments firm, theConsolidated Capital-to-Risk Ratio on Downstream
Consolidation is two hundred percent (200%) or more.

(f)

In the case of a designated special financial instruments firm,in relation to the Consolidated Capital-to-Risk Ratio on
Uniform International Standards, the Consolidated Common
Equity Tier 1 Capital Ratio is four point five percent (4.5%) or
more, and the Consolidated Tier 1 Capital Ratio is six percent(6%) or more, and the Total Consolidated Capital-to-Risk
Ratio is eight percent (8%) or more, or the Consolidated
Capital-to-Risk Ratio on Sample Downstream Consolidationis two hundred percent (200%) or more.

(g)

In the case of a registered financial institution subject toUniform International Standards, the requirements areequivalent to those set forth in Article 15.3(4)(g);(h)

In the case of a financial institution subject to JapaneseStandard, the requirements are equivalent to those set forth in
Article 15.3(4)(h);(i)

In the case of The Norinchukin Bank, the requirements areequivalent to those set forth in Article 15.3(4)(i);(j)

In the case of Shinkin Central Bank, the requirements areequivalent to those set forth in Article 15.3(4)(j);(k)

In the case of a shinkin bank subject to Japanese Standard, therequirements are equivalent to those set forth in Article
15.3(4)(k);(l)

In the case of The Shoko Chukin Bank, Ltd., the requirements
are equivalent to those set forth in Article 15.3(4)(l);(m)

In the case of a foreign bank, the requirements are equivalent

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to those set forth in Article 15.3(4)(m).
15.14 The applicant having net assets of less than 2 billion yen shall satisfy all of thefollowing criteria:(1)

Geographic basis
The applicant shall have an office or branch in Japan that is engaged inmarket derivatives transactions on the Exchange Market.

(2)

Clearing membership
obtaining an FX Clearing Futures Clearing Membership.

(3)

Personnel:(a)

The applicant is a registered financial instruments firm,categorized as a first financial instruments business operator
and a second financial instruments business operator or aregistered financial institution.

(b)

The applicant has engaged in Specified Currency-RelatedOver-The-Counter Derivative Transactions with customers ascounterparties.

(c)

The applicant is able to designate two or more LP Trading
Members as its counterparties for each type of FX Clearing
Futures transactions with respect to which the applicant files a
notification with the Exchange pursuant to Article 12.1 of the
FX Clearing Special Provisions.

(d)

(4)

In the light of its personnel, the applicant has knowledge andcapacity enough to perform its business as an FX Clearing
Trading Member, and having sufficient social credit.

Financial resources(a)

The capital of the applicant is 300 million yen or more.

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(b)

In the case of a financial instruments firm, the Capital-to-Risk
Ratio is two hundred percent (200%) or more.

(c)

The applicant is likely to maintain stable profitability as a
Trading Member.

(d)

In the case of a special financial instruments firm, theConsolidated Capital-to-Risk Ratio on Downstream
Consolidation is two hundred percent (200%) or more.

(e)in the case of a designated special financial instruments firm,in relation to the Consolidated Capital-to-Risk Ratio on
Uniform International Standards, the Consolidated Common
Equity Tier 1 Capital Ratio is four point five percent (4.5%) or
more, and the Consolidated Tier 1 Capital Ratio is six percent(6%) or more, and the Total Consolidated Capital-to-Risk
Ratio is eight percent (8%) or more, or the Consolidated
Capital-to-Risk Ratio on Sample Downstream Consolidationis two hundred percent (200%) or more.

(f)

In the case of a registered financial institution subject toUniform International Standards, the requirements areequivalent to those set forth in Article 15.3(4)(g);(g)

In the case of a financial institution subject to JapaneseStandard, the requirements are equivalent to those set forth in
Article 15.3(4)(h);(h)

In the case of The Norinchukin Bank, the requirements areequivalent to those set forth in Article 15.3(4)(i);(i)

In the case of Shinkin Central Bank, the requirements areequivalent to those set forth in Article 15.3(4)(j);(j)

In the case of a shinkin bank subject to Japanese Standard, therequirements are equivalent to those set forth in Article
15.3(4)(k);Enforcement Regulations for
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(k)

In the case of The Shoko Chukin Bank, Ltd., the requirements
are equivalent to those set forth in Article 15.3(4)(l);(l)

In the case of a foreign bank, the requirements are equivalent
to those set forth in Article 15.3(4)(m).

(m)

The applicant obtains or has obtained the guarantee for the
obligations arising from FX Clearing Futures contracts
executed in the name of such FX Broker Trading Member forthe benefit of the Exchange from its parent company whosatisfies the criteria (a), (b) and (d) or (e) above and is likely tomaintain stable profitability with the net assets of 3 billion yen
or more by the written guarantee submitted by such parent
company to the Exchange in the form and substance approvedby the Exchange, provided, however, the parent company shallbe experienced in the field of financial business in general.

15.15 The examination as to an LP Trading Membership referred to in Article 53.2 of
the Trading Member Regulations shall be conducted in accordance with the criteria set
forth in Articles 15.16 and 15.17 below.
15.16

The applicant shall be required to satisfy all of the following criteria:(1)

Geographic basis
The applicant shall have an office or branch in Japan that is engaged inmarket derivatives transactions on the Exchange Market.

(2)

Clearing membership
obtaining an FX Clearing Futures Clearing Membership.

(3)

Personnel(a)

The applicant is a registered financial instruments firm,categorized as a second financial instruments business
operator or a registered financial institution.

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(b)

(4)

In the light of its personnel, the applicant has knowledge andcapacity enough to perform its business as an LP Clearing
Trading Member, and having sufficient social credit.

Financial resources:(a)

The capital of the applicant is 300 million yen or more.

(b)

The net assets of the applicant are 2 billion yen or more.

(c)

In the case of a financial instruments firm, the Capital-to-Risk
Ratio is two hundred percent (200%) or more.

(d)

The applicant is likely to maintain stable profitability as a
Trading Member.

(e)

In the case of a special financial instruments firm, theConsolidated Capital-to-Risk Ratio on Downstream
Consolidation is two hundred percent (200%) or more.

(f)

In the case of a designated special financial instruments firm,in relation to the Consolidated Capital-to-Risk Ratio on
Uniform International Standards, the Consolidated Common
Equity Tier 1 Capital Ratio is four point five percent (4.5%) or
more, and the Consolidated Tier 1 Capital Ratio is six percent(6%) or more, and the Total Consolidated Capital-to-Risk
Ratio is eight percent (8%) or more, or the Consolidated
Capital-to-Risk Ratio on Sample Downstream Consolidationis two hundred percent (200%) or more.

(g)

In the case of a registered financial institution subject toUniform International Standards, the requirements areequivalent to those set forth in Article 15.3(4)(g);(h)

in the case of a financial institution subject to JapaneseStandard, the requirements are equivalent to those set forth in
Article 15.3(4)(h);Enforcement Regulations for
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(i)

In the case of The Norinchukin Bank, the requirements areequivalent to those set forth in Article 15.3(4)(i);(j)

In the case of Shinkin Central Bank, the requirements areequivalent to those set forth in Article 15.3(4)(j);(k)

In the case of a shinkin bank subject to Japanese Standard, therequirements are equivalent to those set forth in Article
15.3(4)(k);

15.17

(l)

In the case of The Shoko Chukin Bank, Ltd., the requirements
are equivalent to those set forth in Article 15.3(4)(l);(m)

I n the case of a foreign bank, the requirements are equivalent
to those set forth in Article 15.3(4)(m).

The applicant having net assets of less than 2 billion yen shall satisfy all of thefollowing criteria:(1)

Geographic basis
The applicant shall have an office or branch in Japan that is engaged inmarket derivatives transactions on the Exchange Market.

(2)

Clearing membership
obtaining an FX Clearing Futures Clearing Membership.

(3)

Personnel(a)

The applicant is a registered financial instruments firm,categorized as a second financial instruments business
operator or a registered financial institution.

(b)

In the light of its personnel, the applicant has knowledge andcapacity enough to perform its business as an LP Clearing
Trading Member, and having sufficient social credit.

Enforcement Regulations for
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(4)

Financial resources:(a)

The capital of the applicant is 300 million yen or more.

(b)

In the case of a financial instruments firm, the Capital-to-Risk
Ratio is two hundred percent (200%) or more.

(c)

The applicant is likely to maintain stable profitability as a
Trading Member.

(d)

In the case of a special financial instruments firm, theConsolidated Capital-to-Risk Ratio on Downstream
Consolidation is two hundred percent (200%) or more.

(e)in the case of a designated special financial instruments firm,in relation to the Consolidated Capital-to-Risk Ratio on
Uniform International Standards, the Consolidated Common
Equity Tier 1 Capital Ratio is four point five percent (4.5%) or
more, and the Consolidated Tier 1 Capital Ratio is six percent(6%) or more, and the Total Consolidated Capital-to-Risk
Ratio is eight percent (8%) or more, or the Consolidated
Capital-to-Risk Ratio on Sample Downstream Consolidationis two hundred percent (200%) or more.

(f)

In the case of a registered financial institution subject toUniform International Standards, the requirements areequivalent to those set forth in Article 15.3(4)(g);(g)

In the case of a financial institution subject to JapaneseStandard, the requirements are equivalent to those set forth in
Article 15.3(4)(h);(h)

In the case of The Norinchukin Bank, the requirements areequivalent to those set forth in Article 15.3(4)(i);(i)

In the case of Shinkin Central Bank, the requirements areequivalent to those set forth in Article 15.3(4)(j);Enforcement Regulations for
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(j)

In the case of a shinkin bank subject to Japanese Standard, therequirements are equivalent to those set forth in Article
15.3(4)(k);(k)

In the case of The Shoko Chukin Bank, Ltd., the requirements
are equivalent to those set forth in Article 15.3(4)(l);(l)

In the case of a foreign bank, the requirements are equivalent
to those set forth in Article 15.3(4)(m).

(m)

The applicant obtains or has obtained the guarantee for the
obligations arising from FX Clearing Futures contracts
executed in the name of such LP Trading Member for the
benefit of the Exchange from its parent company who satisfies
the criteria (a), (b) and (d) or (e) above and is likely tomaintain stable profitability with the net assets of 3 billion yen
or more by the written guarantee submitted by such parent
company to the Exchange in the form and substance approvedby the Exchange, provided, however, the parent company shallbe experienced in the field of financial business in general.

CHAPTER III.
SELF-REGULATORY OPERATIONSArticle 16.

Application for Trading Membership

16.1
An application for trading membership set forth in Article 53.1 or 53.3 of theTrading Member Regulations shall be made in the prescribed application form
accompanied by a written undertaking, a written notification of the conclusion of aClearing Agreement, a copy of the articles of incorporation, and other documents
deemed necessary by the Exchange.
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16.2
A trading membership applicant which is a Bridge Financial Institution, etc.
may omit filing of the documents listed in Article 16.1 above which the Exchange deems
it appropriate to do so.

Article 17.

Notifiable Matters

A notification to the Exchange set forth in Article 55 of the Trading Member
Regulations shall be made in the prescribed notification form accompanied by the
documents deemed necessary by the Exchange.

Article 18.

Reportable Matters

Reporting to the Exchange set forth in Article 56 of the Trading Member
Regulations shall be made in the prescribed reporting form accompanied by the
documents deemed necessary by the Exchange.

Article 18-2.

Notifiable Matters with Respect to Special Financial Instruments
Firm, etc.

The events separately prescribed by the Exchange set forth in Article 56.4 of theTrading Member Regulations shall be as follows:(1)

The Trading Member has filed a notification pursuant to Paragraph 1 orItem 2 of Paragraph 6 of Article 57-2 of the Act.

(2)

The Trading Member’s parent company (meaning a corporation orother legal entity which has the majority of the voting rights of allshareholders of the Trading Member; the same shall apply in this
Article) has become subject to the designation set forth in Paragraph 1
of Article 57-12 of the Act.

(3)

The Trading Member has become aware that its designated parent
company (meaning the designated parent company set forth in

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Paragraph 3 of Article 57-12 of the Act; the same shall apply
hereinafter) filed a notification under Article 57-14 of the Act withrespect to the matter stated in Item 6 of Paragraph 1 of Article 57-13 of
the Act.
(4)

The Trading Member has become aware that a petition forcommencement of bankruptcy proceedings, commencement of
rehabilitation proceedings, commencement of reorganization
proceedings, commencement of liquidation or commencement ofspecial liquidation has been filed with respect to its designated parent
company.

(5)

The Trading Member has become aware that its designated parent
company has become or is threatened to become unable to pay its debts
when due in general.

(6)

The Trading Member has become aware that its designated parent
company has become subject to a disposition or punishment under any
Laws related to market derivatives transactions (if such designatedparent company is a foreign legal entity, including any foreign law or
regulations equivalent to the Laws), or that its designated parent
company has been provided an opportunity for hearing or explanationin relation to any disposition under any Laws related to market
derivatives transactions.

(7)

The Trading Member has become aware that the designation received
by its parent company as designated parent company has been
terminated, or that the designation has become no longer applicable to
it.

(8)

The Trading Member has become aware that its designated parent
company has merged with another corporation or other legal entity(unless it has ceased to exist as a result of the merger).

(9)

The Trading Member has become aware that its designated parent
company filed any application, notification, report or other filing with
the Prime Minister, the Commissioner of the Financial Services

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Agency or the Securities and Exchange Surveillance Commission orunder similar circumstances where the Exchange determines it
necessary to receive a report on the details of such filing.
(10)

Article 19.

The Trading Member has become aware that its shareholder has
become or has ceased to be a specified major shareholder (meaning thespecified major shareholder (tokutei shuyou kabunushi) set forth inParagraph 4 of Article 32 of the Act).

Financial Reporting

19.1
Financial reporting set forth in Articles 57.1 and 57.2 of the Trading Member
Regulations shall be made by submitting documents deemed necessary by the Exchange
which have been prepared on a single or consolidated accounting basis within three (3)months after the close of each fiscal year of the Trading Member; provided, however,
that, if a Trading Member is a corporation established under foreign laws and isapproved by the competent administrative authority in Japan to postpone the submissionof a business report, the Trading Member shall make financial reporting to the Exchange
within the approved period on condition that the Trading Member shall have notified the
Exchange of the contents of such approval.
19.2
Notwithstanding Article 19.1 above, if a Trading Member or its Parent
Company is a corporation established under the Insurance Business Act, the financial
reporting as to the Trading Member or its Parent Company shall be made within four (4)months after the close of each fiscal year of the Trading Member.
19.3
Notwithstanding Article 19.1 above, if a Trading Member’s Parent Company isa corporation established under foreign laws and the Trading Member is determined as
being unable to complete financial reporting as to the Parent Company within the period
set forth in Article 19.1 above due to its home country’s applicable laws or regulations orpractices governing the preparation of accounting books and records, the financial
reporting shall be made within the period approved by the Exchange.

Article 20.

Procedures for Hearing

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The procedures for hearing set forth in Articles 59, 61, 62, 62-2 and 63 of theTrading Member Regulations shall be conducted in the manner set forth in each Item
below:(1)

The Exchange shall notify the matters for the hearing and the datethereof to the Trading Member on whom the hearing is to be
conducted.

(2)

The Trading Member may make a statement at the hearing and the
Exchange shall produce a record of the subject matters of the hearing,the details of the statements and other matters.

SUPPLEMENTARY PROVISIONS
The amended Enforcement Regulations shall take effect as from December 14, 2015.

SUPPLEMENTARY PROVISIONS
The amended Enforcement Regulations shall take effect as from February 27, 2017.

SUPPLEMENTARY PROVISIONS
These amended Enforcement Regulations shall take effect as from June 29, 2018.

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

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

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

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