Annual Report the 11th Tokyo Financial Exchange Inc.

Annual Report
Business Report 2014 for the Fiscal Year
Ended March 31, 2015

Tokyo Financial Exchange Inc.

Business Report 2014

To Our Shareholders
First, we would like to express our sincere gratitude to
our shareholders for your continued support of ouroperations and business.
In ﬁscal 2014, the operating environment for Tokyo
Financial Exchange (TFX) was as follows:・Short-term interest rates hovered at lower level s
compared to the previous ﬁscal year due to thefurther expansion of Quantitative and Qualitative
Monetary Easing with JGB yields turning negative.
Trading volumes of Three-month Euroyen futures fellsigniﬁcantly to 2,394,000 lots, down 48.1% year-on-year.
・In the foreign exchange market, the yen depreciatedsigniﬁcantly in the second half of the ﬁscal year driven
by directional diﬀerences between Japanese and U.S.
monetary policies, postponement of a consumption
tax increase in Japan, and additional monetary easing
by the Bank of Japan.
Trading volumes of Click 365, Exchange FX Margin

Contents
To Our Shareholders

1

TFX Businesses

3

Summary of Operating Results

4

Topics in Fiscal Year 2014

5

Framework Based on Economic/
Financial and Regulatory Outlook

9

Financial Statements (Summary) andMarket Data

14

Corporate Proﬁle1

contracts, showed increases in the second quarter

Tokyo Financial Exchange Inc.

Back cover

onward due to a sharp depreciation of the yen after avery weak ﬁrst quarter. For the full year, however,trading volumes of Click 365 declined to 34,015,000
lots, down 23.6% year-on-year.
・The stock market saw signiﬁcant rises in stock prices
on the back of, among other factors, the improved
corporate earnings environment due to the cheaperyen, and declines in crude oil prices, coupled with buying
by the BOJ and inﬂows from public pension funds.
Annual trading volumes of Click Kabu 365, Exchange
Equity Index Margin contracts, rose to 6,324,000 lots, up
20.0% year-on-year.
As a result, the overall trading volume on TFX in ﬁscal
year 2014 was 42,734,000 lots, down 21.5% year-on-year.
Operating revenues decreased 801 million yen, or 15.9%,
year-on-year to 4,225 million yen.
Operating expenses fell 1,715 million yen, or 27.3%,
yea r- o n -yea r to 4, 559 millio n ye n . We a chieve d t h e
si g n i ﬁ c a n t e x p e n s e re d u c t i o n by cu t t i n g p e rs o n n e lexpenses by 165 million yen compared to the previous
ﬁscal year after reviewing our organizational structure toenhance operating eﬃciency. In addition, we achieved ayear-on-year reduction of 1,572 million yen in facility-related
expenses by upgrading systems.
Operating loss narrowed by 914 million yen year-on-year
to 333 million yen, with Interest Rate Futures contracts andMargin contracts (Click 365 and Click Kabu 365) posting aloss of 1,323 million yen and a proﬁt of 989 million yen,respectively.
Non-operating revenues, which were mostly generated
from investments such as the gain on sales of investment
securities and dividend income, were 644 million yen as
fund investments were expanded in 2014. Non-operating
expenses were 3 million yen.

As a result of the above, proﬁt before income taxes was
308 million yen, and proﬁt after income taxes was 469
million yen af ter deducting income taxes and adding
income taxes-deferred of 180 million yen due to posting ofdeferred tax assets.
In ﬁscal year 2015,
Interest Rate Futures Contracts Business will focus on
creating trades by overseas investors given very limited
trades by Japanese ﬁnancial institutions.
In addition, in light of the enhanced OTC derivatives
regulations, we will pursue new business opportunities
such as margin management service for OTC derivatives.
In Margin Contracts Business, market share performanceof “Click 365” in Japan remains weak due to competition
for narrower spreads with OTC retail FX brokers. TFX willappeal the advantages of trading on an exchange and meettrading needs of overseas investors and large accounts(corporate). Speciﬁcally, we plan to list the Click 365 Large
with trading units 10 times larger than the existing Click
365. We will also consider creating a currency futures
market.
For Click Kabu 365, we will work on integrated managementof margin accounts for Click Kabu 365 and Click 365.
We sincerely ask our shareholders for your ongoingsupport and cooperation.

Ordinary income was 308 million yen, up 1,422 million
yen compared to the loss posted in the previous ﬁscal year.
June 2015

President and CEO

Shozo Ohta

Tokyo Financial Exchange Inc.

2

TFX BusinessTokyo Financial Exchange (TFX) contributes to the sound development of the ﬁnancial markets and the economy ofJapan by developing ﬁnancial instruments markets as public infrastructure related to ﬁnancial instruments transactions
that provide a superior degree of fairness, reliability, and convenience in accordance with the Financial Instruments andExchange Act.
TFX, as a comprehensive exchange for ﬁnancial derivatives, has now listed products that cover all three major sectors
for ﬁnancial derivatives: interest rates, foreign exchange, and stocks as listed below.

Interest Rate Futures
Contracts Business

Interest Rate
SectorInterest Rate
Futures
contracts

Foreign
Exchange Sector

Stocks Sector

Click 365

Click Kabu 365(Exchange FX Margin contracts)(Exchange Equity Index
Margin contracts)(Listed products)(Listed products)(Listed products)

・Options on Three-month Euroyen futures

・13 yen currency pairs

・DAX® Margin contracts

・Three-month Euroyen futures
・Over-Night Call Rate futures

3

Margin Contracts BusinessTokyo Financial Exchange Inc.

24 trading currency pairs in total
・11 cross currency pairs

・Nikkei 225 Margin contracts
・FTSE 100 Margin contracts

Summary of Operating Results
Financial Accounts ‒ Highlights
FY 2010

FY 2011

FY 2012FY 2013

FY 2014

Changefrom FY2013

Operating Revenues(million yen)

10,966

9,238

5,456

6,602
7,627
15.5%
（5,027） （4,225）（▲15.9%）

Operating Proﬁt or Loss (▲)(million yen)

3,927

1,761

▲581

▲1,247▲333̶

Ordinary Proﬁt or Loss (▲)(million yen)

4,232

2,086

▲378

▲1,114308

̶Net Income or Loss (▲)(million yen)

2,242

807

55

▲1,855469

̶

2,599.02

935.5263.98 ▲2,150.61

543.95̶Net Income or Loss (▲) per Share(yen)

Total Assets(million yen)

238,807240,840

249,650

284,647

395,379

38.9%

Net Assets(million yen)

23,24423,447

23,071

20,95821,340

1.8%

(yen)

26,942.55

27,178.08

26,742.06

24,292.09 24,735.03

1.8%

Net Assets per Share

The values in parentheses under operating revenues are eﬀective operating revenues after subtracting cost for incentive programs to
make investor s charge for Click 365 free.
Net income per share was 543.95 yen, and net assets per share were 24,735.03 yen, up 1.8% year-in-year.
Dividend per share increased 50 yen year-on-year to 200 yen as TFX returned to proﬁtability for the current term.

Market Highlights
Annual Trading Volume (Change from previous ﬁscal years)■ Three-month Euroyen futures(in thousands)■ Click Kabu 365(in thousands)

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

11,466
5,816
4,989
4,620
2,394
（▲5.7%）（▲49.2%）（▲14.2%）（▲7.4%）（▲48.1%）

447
1,042
2,524
5,268
6,324
（―%） （+132.8%）（+142.1%）（+108.6%）（+20.0%）■ Click 365(in thousands)■ Total Trading Volume of Listed Products (in thousands)

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

123,432
121,116
58,20044,55634,015（+53.5%）（▲1.8%）（▲51.9%）（▲23.4%）（▲23.6%）135,346 128,019
65,71854,44542,734（+46.2%）（▲5.4%）（▲48.6%）（▲17.1%）（▲21.5%）

The rate of change year-on-yen shown is rounded down to the ﬁrst decimal place.
Tokyo Financial Exchange Inc.

4

Topics in Fiscal Year 2014
1 Expansion of Margin Contracts Market
1 Record highs for deposited margin
The deposited margin of Click 365 reached a record high as of the end of March 2015
with the increased number of accounts.
Click Kabu 365 posted record highs in both deposited margin and the number of accounts as of the end of March 2015.
Click 365

800,000

2,800

750,000

2,600

700,000

2,400

300

40,000280

38,000260

36,000240

34,000220

32,000200

500,000

1,600

30,000180

2ay 014
.2
Ju 01
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Ja 201
n.
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Fe 20
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M 20
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5

1,800

A

42,000pr.

550,000

pr.2
ay 014.
Ju 201
n.
4
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Ja 201
n.
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5

2,000

M

320

2,200

600,000

Tokyo Financial Exchange Inc.

44,000M

650,000

5

Deposited margin (right axis)(Unit: 100 million yen)
Number of accounts (left axis)(Unit: 100 million yen)A

Deposited margin (right axis)
Number of accounts (left axis)

Click Kabu 365

2 Expansion of trading channels with new entry
by intermediate brokers and agents

Trading channels expanded as three intermediate brokers and one intermediate agent
newly entered the market.
(As of the end of March 2015, TFX has ﬁve intermediate brokers and three intermediate agents)
Click 365 trading through intermediate brokers
Tokyo
Financial
Exchange(TFX)

Click 365
Intermediate
brokers

Click 365
Trading
members
Placing orders
Depositing margins

Individual
investors
Opening account
Placing orders
Depositing margins

3 Spread Tightening for Nikkei 225 Margin contracts
(yen)
14

Itʼs really tight…

12

Spreadtightening

10
8
6
4
2

4
01
ec
.2

D

01
4

N
ov

.2

01
4
ct
.2

O

.2
01
4

0
Se
p

S p re a d f o r N i k ke i 2 2 5
Margin contracts tightened
signiﬁcantly after designationof Nissan Century Securities
as market maker (M M) in
November.

Tokyo Financial Exchange Inc.

6

Topics in Fiscal Year 2014

2 Enhanced Promotion Activity
1

Enhanced Promotion Targeting Domestic Investors

TFX strengthened its eﬀorts to promote the Margin contracts market. TFX
held the Click Festival 2014 in November in collaboration with media organizations and seminars for beginners at TFX Plaza (three times a month)and then participated in many seminars hosted by Trading Members.

2

Expansion of Promotion Targeting Overseas Investors

In order to expand trades in the Interest Rate Futures contracts market and the Margin contracts
market, TFX visited investors in, among other places, London, Chicago, and Singapore, enhancing sales to
win trading ﬂows.

3

Establishment of Committee for Creation of Currency Futures Market

In light of tighter regulations on OTC derivatives trades, TFX sets up the Committee for Creation of Currency Futures Market to exchange opinions on creation of a currency futures market similar to the Chicago Mercantile Exchange (CME).

3
1

Improving Operational Eﬃciency,
Cutting Expenses

Improved Eﬃciency in the Market Monitoring System

In July 2014, TFX established a more eﬃcient monitoring system with the limited number of personnel by consolidating the market monitoring functions of
the Interest Rate Futures Contracts Business and the Margin Contracts Business.

2

Expense Reduction Initiatives

TFX achieved a signiﬁcant reduction of approximately 1.7 billion yen year-on-year in operating expenses.
This reduction was achieved by, among other measures, reviewing its organizational structure as de-scribed in 1 above, and upgrading systems.
7

Tokyo Financial Exchange Inc.

4 Enhanced Risk Management System
1 Enhanced Risk Management System
TFX took appropriate measures to meet the requirements of “Comprehensive
Guidelines for Supervision of Financial Market Infrastructures - Clearing Organizations, Fund Clearing Organizations, Book-entry Transfer Institutions, and Trade
Repositories” (2013) by establishing the Chief Risk Oﬃcer (CRO) and the Risk
Management Oﬃce (Compliance and Risk Management Oﬃce).

2 Won a Lawsuit concerning Click 365 South Africa Rand/Japanese Yen contracts
TFX won a lawsuit initiated in 2010 in which the plaintiﬀ claimed damages against the Company relating
to the South Africa rand/Japanese yen contracts with the Tokyo District Court dismissing the case in
March 2015. The case is now being adjudicated by the Tokyo High Court because the plaintiﬀ appealed.

5 Others
1 Developing and Enhancing Talent
TFX strived to develop and enhance talent (by enhancing, for example,
secondment to domestic ﬁnancial institutions and government agencies,
trainees overseas, overseas English study, and training by job rank) to be atrustworthy organization .

2 Safe and Eﬃcient Fund Management
TFX actively invested its own funds while paying attention to safety by
establishing an investment committee.

Tokyo Financial Exchange Inc.

8

Framework Based on Economic/
Financial and Regulatory Outlook
Ⅰ．The Japanese economy is currently expected to show a modest recovery and defeat deﬂation

underpinned by, among other factors, the yenʼs depreciation, cheaper oil prices, improved cor-porate earnings, and increased consumer spending on the back of employment and wage
growth. Going forward, sudden changes in interest rates and foreign exchange rates are envisaged in association with the end of Quantitative and Qualitative Monetary Easing (QQE) by the
Bank of Japan.
Ⅱ．After the collapse of Lehman Brothers, the global trend is for tighter ﬁnancial regulations to prevent systemic risk.
Ⅲ．Amid intensifying competition among Asian markets, the Japanese government articulates establishment of Japan ﬁnancial market as an international ﬁnancial center in its Japan Revitalization
Strategy of the Japanese government that has a view of 2020.
Based on these visions, TFX, as a comprehensive exchange for ﬁnancial derivatives, is expected tocontribute to the development and revitalization of Japanʼs ﬁnancial derivatives market by oﬀering
attractive and reliable products.

Ⅰ．BOJʼs QQE（Abenomicsʼ “ﬁrst arrow”）
Develop hedging and trading tools under theultra-low interest rate environment,
envisaging a rise in interest rates and suddenchanges in exchange rates.

Ⅱ．Globally tightened regulations after
the collapse of Lehman Brothers（Division of role sharing and regulatory balance
between exchange markets and OTC markets）
Enhance the ﬁnancial position further as a clearing house(Need to prevent systemic risk of OTC markets and protect investors)

Revitalize the derivatives market by developing and oﬀering investment productsthat are attractive to domestic and foreign money(including 1,700 trillion yen ﬁnancial assets held by individuals in Japan)

Ⅲ．Vision of Tokyo as international ﬁnancial center in theintensifying competition among Asian markets

9Tokyo Financial Exchange Inc.

For details, see the following pages.

Ⅰ．BOJʼs Quantitative and Qualitative Monetary Easing (Abenomicsʼ “First Arrow”)

Ⅰ

Ⅱ
Ⅲ

While trading volumes of Interest Rate Futures contracts signiﬁcantly decreased due to thecontinuation of QQE by the BOJ, TFX needs to be prepared for the revival and development of theshort-term interest futures market, which is indispensable function in the ﬁnancial market, with theprospect of rising short-term interest rates upon ending of the monetary easing.
In addition, developing a sound FX derivatives market that will withstand sudden changes inexchange rates in the future is an urgent task.

Challenge
Develop hedging and trading tools that envisage rising interest rates
and sudden changes in exchange rates◆ Developing mid-curve options

In prospect of rising interest rates in the future, TFX will develop
mid-curve options, which are mainstream products in overseas
exchanges, as hedging and trading tools on the mid-range of the yield
curve.

◆ Creation of a currency futures market

By having in-depth discussions at the Committee for Creation of Currency Futures Market, TFX willconsider the frameworks that focus on use by institutional investors (e.g. auctions).

Tokyo Financial Exchange Inc.

10

Framework Based on Economic/Financial and Regulatory Outlook

Ⅱ．Globally tightened regulations after the collapse of Lehman Brothers(Division of role sharing and regulatory balance between
exchange markets and OTC markets）
Financial regulations have been tightened on global basis since the collapse of Lehman
Brothers.
Especially, exchanges who have their own clearing houses ( “clearing house(s)”) are
required to meet various regulations including enhancement of ﬁnancial resources andintroduction of higher risk management. As a result, while heavy burden is placed on
clearing houses, OTC markets are not subject to the same level of strict regulations.
On the other hand, for FX trades, which have become popular among individual
investors in recent years, overseas countries (e.g. U.S. and Asian countries) treat
exchange-traded FX trading diﬀerently from OTC-traded FX.
Globally consistent standards should be established in Japanese regulations from theperspective of investor protection, based on the respective characteristics of exchanges
and OTC markets.

11

Tokyo Financial Exchange Inc.

Ⅰ

Ⅱ
Ⅲ

ChallenFurther enhancement of ﬁnancial position as a clearing house
Prevention of systemic risk in the Japanese FX market and enhanced investor protection◆ Observing ﬁnancial regulations

ge

The Principles for Financial Market Infrastructures (PFMI),
international standards released in 2012 in response to theﬁnancial crisis triggered by the collapse of Lehman
Brothers, require clearing houses to put aside moreﬁnancial resources to fund loss compensation in the eventof default by a clearing participant. In order to meet theserequirements, TFX has taken measures such as increasingclearing deposits and default compensation reserves.
In addition, in April 2015, TFX was recognized as a
Third-Country CCP under European Market Infrastructure
Regulation (EMIR), which regulates clearing houses in
Europe with the aim of reducing systemic risk.

◆ Preventing systemic risk in the Japanese FX market

International ﬁnancial regulations introduced after the
Lehman shock also applies to TFX as a clearing house (forClick 365), thereby enhancing investor protection.
OTC markets do not have a safety net such as clearing
deposits and default compensation reserves, nor are
subject to PFMI.
Necessary regulations are required on OTC markets forsound development of the FX market and investor
protection.

Tokyo Financial Exchange Inc.

12

Framework Based on Economic/Financial and Regulatory Outlook

Ⅲ．Vision of Tokyo as international ﬁnancial center in theintensifying competition among Asian markets

Ⅰ

Ⅱ
Ⅲ

With the rise of Asia in the global economy, Singapore, Hong Kong, Shanghai, and other Asianﬁnancial markets now show a signiﬁcant presence, attracting investors across the world.
In order to attract domestic and foreign money (including 1,700 trillion yen ﬁnancial assets held byindividuals in Japan), TFX is expected to contribute to the realization of the Tokyo international
ﬁnancial center by developing attractive ﬁnancial products.

Challenge
Revitalization of the ﬁnancial derivatives market◆ Listing of Click 365 Large

TFX will list the Click 365 Large whose trading unit is 10 times larger
than the existing Click 365 with tighter spreads (reintroducing
transaction fee collection) in order to meet the transaction needs oflarge volume investors (corporate) at home and abroad.

◆ Expansion of Click Kabu 365

TFX will enhance the appeal of Click Kabu 365, very popular retailequity indexed CFD products with user-friendly specs, and attract
Asian investors by increasing varieties of indexes and taking othermeasures.

13

Tokyo Financial Exchange Inc.

Financial Statements (Summary) and Market Data
■ Balance Sheet (Summary)
Account Titles

FY 2013

As of March 31, 2014

(million yen)

FY 2014

Account Titles

As of March 31, 2015

(Assets)

FY 2013

As of March 31, 2014

FY 2014

As of March 31, 2015

(Liabilities)■ Proﬁt and Loss
Statement (Summary) (million yen)Account Titles
Operating Revenues

17

Income taxes receivable

127Prepaid expenses

74

78

Deferred tax assets−

116

Others0

4268,703

380,604(Net Assets)

1,684

1,421

Shareholders' Equity

20,957

21,297419

399

Common stock

5,844

5,844

1,264

1,022

Capital surplus

6,045

6,045

3,663

2,910

Retained earnings

9,066

9,406

3,648

2,897

3,594

3,594

14

13

5,472

5,812

642

4,024

0

42

Income taxes-current

262,712372,247

20,95821,3403

19

Income taxes-deferred

284,647

395,379

284,647

395,379

193▲180

Net Income or Loss (▲)▲ 1,855469

Intangible Fixed Assets
Software
OthersInvestment andOther Assets

Assets Held for
Guarantee from Members

Total Assets

Others1778

263,251

372,847

262,712372,247

539

599

263,689

374,039

35

Accounts
receivable - otherFurniture andequipment

921

208

47

548

Buildings

46

258

5,440

Tangible Fixed Assets

−

6,700

7,518

Non-current Assets

513

686

Consumption taxes
receivable

142

5,872

1,764

Accounts
receivable - trade

553

2

7,627

144

13,526

Securities

418

6,602

14,774

Cash and bank deposits

1,191

FY 2014

15,944Current Assets

438

Fixed amountexchange fees
Per-contract
exchange fees
Income related tosystem equipment

FY 2013

From April 1, 2013 From April 1, 2014
to March 31, 2014 to March 31, 2015

Current Liabilities
Accounts
payable - trade

Accounts
payable - otherNon-current Liabilities
Deposits received
from members
OthersTotal Liabilities

Default compensation
Reserve
Retained earnings
brought forward

Valuation and Translation
Adjustments
Total Net Assets
Total Liabilities andNet Assets■ Market Data

Other exchange fees
Member registration
fees, etc.
Income frominformation services
Income from asset
management/investment

17

7

262

262

−

271

7,850

7,960

Personnel expenses

1,336

1,222

Marketing expenses

1,781

3,553

Facility-related expenses

4,537

2,965

Administrative expenses

193

219

▲ 1,247▲333

Non-operating Revenues

133

644

Non-operating Expenses

03

Ordinary income or loss (▲)▲ 1,114308

Extraordinary Income−−

Extraordinary Losses▲ 543

Income or Loss (▲)
Before Income Taxes−▲ 1,658

308

Operating Expenses

Operating Loss (▲)(In lots; upper row: annual trading volume; lower row: average daily trading volume)

Products

FY 2010

FY 2011

FY 2012FY 2013

FY 2014

Three-month Euroyen futures

11,466,264(46,801)

5,816,233(23,643)

4,989,726(20,366)

4,620,441(18,859)2,394,821(9,735)

Options on There-month
Euroyen futures

0(0)35,547
(145)

1,500
(6)

0
(0)

100
(0)

123,432,149(472,920)

121,116,072(466,391)

58,200,747(224,754)

44,556,077(171,731)

34,015,116(130,828)

447,814(5,128)1,042,524(4,088)2,524,870(9,762)

5,268,870(20,285)

6,324,175(24,380)

135,346,227(524,849)

128,019,351(494,471)

65,718,851(254,896)

54,445,388(210,875)

42,734,212(164,943)

Click 365
Click Kabu 365
All Listed ProductsTokyo Financial Exchange Inc.

14

Corporate ProﬁleCompany NameTokyo Financial Exchange Inc.

Organizational Chart

FoundedApril 1989 (in April 2004, TFX changed froma membership organization to a stock company)

Boardof Auditors
監査役会

Address

Marunouchi Park Building 15th Floor,
2-6-1 Marunouchi, Chiyoda-ku,
Tokyo, 100-6915, Japan

Fiscal term

March 31

Management

President & CEO
Managing Director
Managing Director
Member of the Board
Member of the Board
Member of the Board
Member of the Board
Member of the Board
Standing Statutory Auditor
Statutory Auditor
Statutory Auditor

Shozo Ohta
Wataru Ito
Takuo Hirota
Takashi Imai
Masahiro Okuno-Fujiwara
Junko Hirakawa
Hidekazu Fukumoto
Shin Yoshidome
Nagao Hashimoto
Toshiyuki Tsukasaki
Shigeyuki Maeda

取
締
役
会

President & CEO

No. of Employees 95 (as of March 31, 2015)

株
主
総
会

Board of Directors

5,844,650,000 yen

General Administration Department
Budget and Accounting Department
Shareholders Meeting

CapitalStatutory
Auditor
監査役

Fixed Income Products Development
and Marketing Department

取
締
役
社
長

Margin Contracts Market
Development Department
Margin Contracts Marketing Department
Clearing and Settlement Department

Self-Regulatory
Committee
自主規制委員会

Market Surveillance Department
System Department

Expert Committee
・Discipline Committee

Advisory Committee
・Interest-Rate Futures etc.
Market Operation Committee
・FX/Equity Index Market Operation
Committee

Corporate Planning Oﬃce
Compliance andRisk Management Oﬃce
Internal Audit Oﬃce
Self-Regulation Bureau

No. of TFX Members(i) Interest Rate Futures Trading Members……………… 44(including 31 Interest Rate Futures Clearing Members and
12 inactive trading members (inactive clearing members))(ii) FX Margin Trading Members(FX Margin Clearing Members)(including 6 FX Market Makers)

Share Information (as of March 31, 2015)
Total No. of Shares Authorized ……… 3,400,000
No. of Shares Issued and Outstanding … 862,750
No. of Shareholders ………………………………… 75…………………………… 21(iii) Equity Index Margin Trading Members……………… 11(Equity Index Margin Clearing Members)

URL

http://www.tfx.co.jp(including 3 Equity Index Market Makers)* Information without a speciﬁc date is as of June 19, 2015.
The Nikkei Stock Average is a copyrighted index calculated by a method independently developed by Nikkei Inc. Nikkei Inc holds the copyright, the intellectual property rights, and all other rights associated with the
Nikkei Stock Average itself and the method of calculating Nikkei Stock Average. Business of Equity Index Margin contracts, the underlying assets of which are the Nikkei Stock Average ( Nikkei 225 Margin contracts ),and the enforcement of trading regulations for such contracts shall be managed under the responsibilities of Tokyo Financial Exchange Inc. ( TFX ) and its Trading Members, and Nikkei Inc shall not assume any
obligations or responsibilities thereof. In operating Nikkei 225 Margin contracts, TFX is responsible for calculating and publishing the ex-dividend prices of stocks used in the Nikkei Stock Average, which are required for
Nikkei 225 Margin contracts. Nikkei Inc has the right to change component stocks in the Nikkei Stock Average, the method of calculation, and other details of the Nikkei Stock Average, and to discontinue the publication of the Nikkei Stock Average. Nikkei Inc shall not be obligated to continuously publish the Nikkei Stock Average, and shall not be liable for any errors, delay or discontinuation of publication.
DAX® is a registered trademark of Deutsche Börse AG. This ﬁnancial instrument is neither sponsored nor promoted, distributed or in any other manner supported by Deutsche Börse AG (the "Licensor"). The Licensor
does not give any explicit or implicit warranty or representation, neither regarding the results deriving from the use of the Index and/or the Index Trademark nor regarding the Index value at a certain point in time or ona certain date nor in any other respect. The Index is calculated and published by the Licensor. Nevertheless, as far as admissible under statutory law the Licensor will not be liable vis-à-vis third parties for errors in the
Index. Moreover, there is no obligation for the Licensor vis-à-vis third parties, including investors, to point out potential in the Index Neither the publication of the Index by the Licensor nor the granting of a license
regarding the Index as well as the Index Trademark for the utilization in connection with the ﬁnancial instrument or other securities or ﬁnancial products, which derived from the Index, represents a recommendation by
the Licensor for a capital investment or contains in any manner a warranty or opinion by the Licensor with respect to the attractiveness on an investment in this product.In its capacity as sole owner of all rights to theIndex and the Index Trademark the Licensor has solely licensed to the issuer of the ﬁnancial instrument the utilization of the Index and the Index Trademark as well as any reference to the Index and the Index
Trademark in connection with the ﬁnancial instrument.
The FTSE100 Margin contract is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited ( FTSE ) or the London Stock Exchange Group companies ( LSEG ) (together the Licensor Parties )and none of the Licensor Parties make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to (i) the results to be obtained from the use of the FTSE100 (the Index ) (uponwhich the FTSE100 Margin contract is based), (ii) the ﬁgure at which the Index is said to stand at any particular time on any particular day or otherwise, or (iii) the suitability of the Index for the purpose to which it isbeing put in connection with the FTSE100 Margin contract. None of the Licensor Parties have provided or will provide any ﬁnancial or investment advice or recommendation in relation to the Index to Tokyo Financial
Exchange Inc. or to its clients. The Index is calculated by FTSE or its agent. None of the Licensor Parties shall be (a) liable (whether in negligence or otherwise) to any person for any error in the Index or (b) under any
obligation to advise any person of any error therein.
All rights in the Index vest in FTSE. FTSE® is a trade mark of LSEG and is used by FTSE under licence.

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The copyright of this document is held by Tokyo Financial Exchange Inc. (TFX). The original text of this document has been prepared in the Japanese language and only the Japanese version will apply to and govern the rights and obligations for all purposes
whatsoever hereunder. Accordingly, the Japanese version of this document shall apply in the event of any disagreement over the meaning or construction of any provisions in this document. Although we undertook with reasonable care to ensure the accuracy of
the translation of this document, no liability for such translation is assumed by TFX under any circumstances whatsoever.