[English Translation]

ENFORCEMENT REGULATIONS FOR
CLEARING REGULATIONSTOKYO FINANCIAL EXCHANGE INC.

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

Enforcement Regulations for Clearing Regulations

Table of Contents
Article 1.
Article 2.
Article 3.
Article 4.
Article 5.

Page
Purpose..................................................................................................... 1
Linked Market Derivatives Transactions ................................................. 1
Amount payable to Linked Overseas Clearing Houses ........................... 1(Deleted) .................................................................................................. 1
Notifiable Matters .................................................................................... 1

Article 6. Reportable Matters ................................................................................... 2
Article 6-2. Matters to be Reported as for Special Financial Instruments Firm, etc. .. 2
Article 7. Financial Reports ..................................................................................... 3
Article 8. Application for Clearing Membership ..................................................... 4
Article 9. Notification of Execution of Clearing Agreement ................................... 4
Article 10. Application for Deregistration of Clearing Membership ......................... 5
Article 11. Application for Approval of Termination of Clearing Agreement ........... 5
Article 12. Limitation on Additional Delivery of Clearing Deposit .......................... 6
Article 12-2. Amount of Interest Rate Futures Clearing Deposit ................................ 7
Article 12-2-2. New Interest Rate Futures Clearing Deposit Requirement after
Cooling Off Period for Interest Rate Futures ....................................... 10
Article 12-2-3. Amount of Special Purpose Cash Collateral .................................... 11
Article 12-3. Amount of Daily Futures Clearing Deposit.......................................... 14
Article 12-3-2. (Deleted) ........................................................................................... 20
Article 12-4. (Deleted) ............................................................................................... 20
Article 12-4-2. (Deleted) ........................................................................................... 20
Article 12-5. Amount of FX Clearing Futures Clearing Deposit............................... 20
Article 12-6. New FX Clearing Futures Clearing Deposit Requirement after
Cooling Off Period ............................................................................... 24
Article 12-7. Amount of Special Purpose Cash Collateral ........................................ 24
Article 13. Adjustment of Advised Volume of Offsetting Transaction .................... 27
Article 14. Manner of Notification of Offsetting Transaction ................................. 29
Article 15. Notification Period for Offsetting Transaction ...................................... 30
Article 16. Correction of Content of Notification of Offsetting Transaction, etc. ... 33
Article 17. Manner of Determination of Daily Settlement Price, etc. ..................... 35
Article 18. Payment of Money between Exchange and Clearing Member .............. 35
Article 19. Payment of Money between Clearing Member and Non-Clearing
Member................................................................................................. 36
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Article 20. (Deleted) ................................................................................................ 36
Article 21. Rate Quotation Time Applied in Determination of Final Settlement
Figure .................................................................................................... 36
Articles 22 and 23 (Deleted)...................................................................................... 36
Article 24. Present Value Formula, etc. ................................................................... 36
Article 25. Payment of Option Premium between Exchange and Clearing Member.............................................................................................................. 36
Article 26. Payment of Option Premium between Clearing Member andNon-Clearing Member.......................................................................... 37
Article 27. (Deleted) ................................................................................................ 37
Article 28. Adjustment of Advised Volume of Offsetting Transaction under Option
Contract ................................................................................................ 37
Article 29. Manner of Notification of Offsetting Transaction under Option
Contract ................................................................................................ 39
Article 30. Notification Period for Offsetting Transaction under Option Contact
and Correction of Content of Notification Thereof, etc. ...................... 39
Article 31. Exercise Notice Period, etc. ................................................................... 42
Article 32. Assignment ............................................................................................ 42
Article 33. Time of Decreasing in Positions resulting from Exercise ...................... 42
Article 34. Time of Execution of Japanese Yen Interest Rate Futures Contracts
resulting from Exercise and Assignment .............................................. 42
Article 35. Manner of Determination of Daily Settlement Price ............................. 43
Article 35-2. Manner of Determination, etc. of FX Settlement Price ........................ 43
Article 35-3. Calculation Method of Swap Point....................................................... 43
Article 35-4. Exception to Resale or Repurchase in connection with FX Daily
Futures Transactions ............................................................................. 45
Article 35-5. Settlement of Fraction Arising from Calculation of Cross Currency
Pairs Transaction Profit or Loss ........................................................... 46
Article 35-6. Procedures taken in Cross Currency Pairs Transaction ........................ 46
Article 36. Manner of Determination, etc. of Equity Index Settlement Price.......... 47
Article 37. Manner of Determination of Daily Interest Rate Amount ..................... 48
Article 38. Manner of Calculation of Dividend Amount ......................................... 50
Article 39. Exception to Resale or Repurchase in connection with Equity Index
Daily Futures Transactions ................................................................... 53
Article 39-2. Manner of Determination, etc. of FX Clearing Settlement Price ......... 53
Article 39-3. Calculation Method of Swap Point....................................................... 53
Article 39-4. Settlement of Fraction Arising from Calculation of FX Clearing
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Futures Transaction Profit or Loss ....................................................... 55
Article 40. Position Transfer Period ......................................................................... 55
Article 41. Procedures for Hearing .......................................................................... 56
Article 42. Method of Allocation of Positions to be Allocated for Early
Termination........................................................................................... 56
Article 43. Order of Coverage by Interest Rate Futures Clearing Deposit .............. 57
SUPPLEMENTARY PROVISIONS ................................................................................... 59
Schedule 1 Present Value Formula ........................................................................... 63
Schedule 2 Linear Interpolation Method .................................................................. 65
Schedule 3 Theoretical Option Price Formula ......................................................... 66

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Table of Contents

Article 1.

Purpose

These Enforcement Regulations set forth the matters to be prescribed ordesignated by the Exchange pursuant to the Clearing Regulations established by the
Exchange (hereinafter called the “Clearing Regulations”).

Article 2.

Linked Market Derivatives Transactions

The financial index designated to be separately prescribed by the Exchange
under Article 2(2) of the Clearing Regulations shall be the financial index set forth in
Article 3(1) of the Trading Regulations.

Article 3.

Amount payable to Linked Overseas Clearing Houses

The amount of money designated to be separately prescribed by the Exchange
under Article 28.2 of the Clearing Regulations shall be the difference between: (X) thesum of monies receivable by each Linked Overseas Clearing House from members of the
Linked Overseas Exchange with respect to overseas positions under the Link Agreementand (Y) the sum of monies payable by each Linked Overseas Clearing House tomembers of the Linked Overseas Exchange with regard to overseas positions under the
Link Agreement, in each case in accordance with the Link Agreement. The Exchange
shall pay to or receive from each Linked Overseas Clearing House such difference,
provided, however, that, if (X) minus (Y) is a negative figure, the Exchange shall pay theabsolute value thereof to the relevant Linked Overseas Clearing House.

Article 4.

(Deleted)

Article 5.

Notifiable Matters

The notifications to the Exchange as required under Articles 9-2 and 14-3 of the
Clearing Regulations shall be made in the prescribed form of notification accompaniedby the documents deemed necessary by the Exchange.
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Article 6.

Reportable Matters

The reporting to the Exchange as required under Article 14-4 of the Clearing
Regulations shall be made in the prescribed form of report accompanied by the
documents deemed necessary by the Exchange.

Article 6-2.

Matters to be Reported as for Special Financial Instruments Firm,
etc.

The events separately prescribed by the Exchange set forth in Article 14-4.5 of
the Clearing Regulations shall be as follows:(1)

The Clearing Member has filed a notification pursuant to Paragraph 1
or Item 2 of Paragraph 6 of Article 57-2 of the Act.

(2)

The Clearing Member’s parent company (meaning a corporation orother legal entity which has the majority of the voting rights of allshareholders of such Member) has become subject to the designation as
the parent company provided in Paragraph 1 of Article 57-12 of the Act.

(3)

The Clearing Member has come to know that its designated parent
company (meaning the designated parent company set forth inParagraph 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 Clearing Member has come to know 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 Clearing Member has come to know that its designated parent
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company has become or is threatened to become unable to pay its debts
when due in general.
(6)

The Clearing Member has come to know 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 Clearing Member has come to know 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 Clearing Member has come to know 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 Clearing Member has come to know that its designated parent
company filed any application, notification, report or other filing with
the Prime Minister, the Commissioner of the Financial Services Agency
or the Securities and Exchange Surveillance Commission or undersimilar circumstances where the Exchange determines it necessary toreceive a report on the details of such filing.

(10)

The Clearing Member has come to know 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).

Article 7.
7.1

Financial Reports

The financial report prescribed in Articles 14-5.1 and 14-5.2 of the Clearing
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Regulations shall be made by submitting the documents deemed necessary by the
Exchange which have been prepared on a single or consolidated accounting basis within
three (3) months after the end of each fiscal year of the Clearing Member, provided,
however, if a Clearing Member established under the laws of a foreign country obtained
the approval from the administrative authority on the extension of period for filing of thebusiness report and notifies the Exchange of the contents, etc. of the approval, thefinancial report shall be made within the approved period.
7.2

Notwithstanding Article 7.1 above, if the reporting Clearing Member or its

Parent Company is a corporation established under the Insurance Business Act (Hoken
Gyoho) (Act No. 105 of 1995), such Clearing Member or its Parent Company shall filethe financial report within four (4) months after the end of each fiscal year of the
Clearing Member.
7.3
Notwithstanding Article 7.1 above, if a Parent Company of the reporting
Clearing Member is a corporation established under the laws of a foreign country andsuch Clearing Member is unable to file the financial report of the Parent Company within
the period set forth in Article 7.1 above due to the laws or regulations or practices of thecountry in which it is established governing the preparation of accounting books, such
Clearing Member shall file the financial report within the period as approved by the
Exchange in accordance with the criteria designated by the Exchange.

Article 8.

Application for Clearing Membership

The application for the clearing membership set forth in Article 4.1 or 4.3 of the
Clearing Regulations shall be made in the prescribed application form accompanied by
the documents deemed necessary by the Exchange.

Article 9.

Notification of Execution of Clearing Agreement

The notification of execution of a Clearing Agreement set forth in Article 16.6of the Clearing Regulations shall be made in the prescribed form of notificationaccompanied by the documents deemed necessary by the Exchange. In principle, a
Non-Clearing Member may enter into a Clearing Agreement with only one (1) Clearing
Member.
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Article 10.

Application for Deregistration of Clearing Membership

The application for deregistration of the clearing membership set forth in Article
11.1 of the Clearing Regulations shall be made in the prescribed application form
accompanied by the documents deemed necessary by the Exchange.

Article 11.

Application for Approval of Termination of Clearing Agreement

11.1
The application for approval of termination of a Clearing Agreement set forth in
Article 19.1 of the Clearing Regulations shall be made in the prescribed application form
accompanied by the documents deemed necessary by the Exchange, after terminating theMember Link Agreement to which both parties to such Clearing Agreement are theparties.
11.2

A case otherwise prescribed by the Exchange as referred to in Article 16.7 of the

Clearing Regulations shall be any one of the following cases. In each such case, theapplication for approval of termination of the Clearing Agreement pursuant to Article
19.1 of the Clearing Regulations shall not be required:(1)

When a Clearing Agreement is terminated upon mutual agreement
between the parties thereto after the Non-Clearing Member, being aparty thereto, acquires the clearing membership and the handing-overto such member of all the unsettled market derivatives contracts iscompleted pursuant to Article 7 of the Clearing Regulations;(2)

When a Clearing Agreement is terminated upon mutual agreement
between the parties thereto (i) under the circumstances where theNon-Clearing Member, being a party thereto, has been deregisteredfrom the trading membership, and none of the market derivatives
contracts executed on the Exchange Market at the bid or offer
submitted by such Non-Clearing Member, the market derivatives
contracts that have arisen as a result of a give-up for the account ofsuch Non-Clearing Member, or the L-T Link Positions that have arisen
for the account of such Non-Clearing Member, remains unsettled, or
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(ii) after the Exchange causes the relevant transaction or position to besettled pursuant to Article 32 of the Trading Member Regulations andthe settlement thereof is completed; or(3)When the Clearing Agreement is terminated upon mutual agreement
between the parties thereto (i) under the circumstances where theClearing Member, being a party thereto, has been deregistered from thetrading membership, and none of the Interest Rate Futures contracts
executed on the Exchange Market in the name of such Clearing
Member at the bid or offer submitted by the Non-Clearing Member,being the other party to such Clearing Agreement, the Interest Rate
Futures contracts that have arisen in the name of such Clearing
Member as a result of a give-up for the account of such Non-Clearing
Member, or the L-T Link Positions that have arisen in the name of such
Clearing Member for the account of such Non-Clearing Member,remains unsettled, or (ii) after the liquidation pursuant to Article 32-2.2of the Trading Member Regulations is completed.

Article 12.

Limitation on Additional Delivery of Clearing Deposit

12.1
Except when Article 40-4 of the Clearing Regulations is applicable, a Clearing
Member with respect to whom the amount of the Interest Rate Futures Clearing Deposit
required to be deposited and maintained by such Clearing Member pursuant to Article
31.2 of the Clearing Regulations is found to be insufficient shall deliver either money or
securities in the amount not less than such deficiency to the Exchange as clearing depositby 11:00 a.m. of any business day which falls within seven (7) business days (meaning
the business day specified in Article 6-2 of Trading Regulations; which interpretation
shall equally apply hereinafter in this Article, Article 12-2 and Article 12-3) counted
from the First Calculation Date and the Second Calculation Date respectively set forth in
Article 12-2.1(1) below. Provided, however, that the Exchange may designate anyother deadline whenever the Exchange deems it necessary to do so.
12.2
If the amount of the Daily Futures Clearing Deposit to be deposited with the
Exchange pursuant to Article 31.3 of the Clearing Regulations is found to be insufficient,money or securities in the amount not less than such deficiency shall be delivered to the
Exchange as clearing deposit by 11:00 a.m. of any business day which falls within seven
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(7) business days counted from the First Calculation Date and the Second Calculation
Date respectively set forth in Article 12-3.1(1) below. Provided, however, that the
Exchange may designate any other deadline whenever the Exchange deems it necessary
to do so.
12.3
Except when Article 41-6 of the Clearing Regulations is applicable, a Clearing
Member with respect to whom the amount of the FX Clearing Futures Clearing Deposit
required to be deposited and maintained by such Clearing Member pursuant to Article
31.4 of the Clearing Regulations is found to be insufficient shall deliver either money or
securities in the amount not less than such deficiency to the Exchange as clearing depositby 11:00 a.m. of any business day which falls within seven (7) business days counted
from the First Calculation Date and the Second Calculation Date respectively set forth in
Article 12-5.1(1) below. Provided, however, that the Exchange may designate anyother deadline whenever the Exchange deems it necessary to do so.
12.4
Notwithstanding Articles 12.1, 12.2 and 12.3 above, if the amount of Interest
Rate Futures Clearing Deposit, Daily Futures Clearing Deposit or FX Clearing Futures
Clearing Deposit becomes less than the amount required to be deposited and maintainedby a Clearing Member as a result of provisional change of the amount of clearing
deposits by the Exchange pursuant to Article 33 of the Clearing Regulations, such
Clearing Member shall, in principle, deliver to the Exchange either money or securities
in the amount not less than such deficiency as clearing deposit by the time designated by
the Exchange on the business day immediately following the business day on which such
deficiency occurs.

Article 12-2. Amount of Interest Rate Futures Clearing Deposit
12-2.1 The amount of Interest Rate Futures Clearing Deposit to be deposited andmaintained by an Interest Rate Futures Clearing Member as separately prescribed by the
Exchange as referred to in Article 31.2 of the Clearing Regulations shall be calculated asfollows:(1)

PML (Probable Maximum Loss) Base Amount shall be obtained inaccordance with the following formula for each type of Interest Rate
Futures contracts with respect to an Interest Rate Futures Clearing
Member.
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PML Base Amount = difference between the long positions and theshort positions held by the Interest Rate Futures Clearing Member oneach Calculation Date, one of which is the First Calculation Date(meaning a business day six (6) business days preceding the firstbusiness day of a month) and the other is the Second Calculation Date(meaning a business day six (6) business days preceding the fifteenth
day of a month (if such day falls under a Japanese bank holiday, thebusiness day immediately following such day which is a Japanesebanking day)); hereinafter the same interpretation shall apply in this
Article) x trading unit x volatility of daily settlement prices duringconsecutive two trading days in the volatility sampling period(meaning the period from the commencement date determined by the
Exchange through the Calculation Date) with respect to the Interest
Rate Futures contracts x daily settlement price on each Calculation
Date + (daily settlement price on each Calculation Date – daily
settlement price on the trading day immediately preceding eachCalculation Date) x the difference between the long positions and shortpositions held by the Interest Rate Futures Clearing Member on the
trading day immediately preceding each Calculation Date x trading
unit
(2)

The PML Amount shall be obtained by adding all the PML BaseAmounts calculated for each type of Interest Rate Futures contracts
with respect to an Interest Rate Futures Clearing Member.

(3)

The Reference PML Amount shall be obtained in accordance with thefollowing formula with respect to an Interest Rate Futures Clearing
Member:
Reference PML Amount = PML Amount – deposited margin for houseaccount position on each Calculation Date – margin requirement for
Customer account position and Securities, etc. Clearing-Brokering
Contracts on the trading day immediately preceding each Calculation
Date

(4)

With respect to each set of Reference PML Amounts obtained in
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accordance with Article 12-2.1(3) above, the Reference PML Amountsof the Interest Rate Futures Clearing Member whose Reference PML
Amount is the largest among the relevant set, the Interest Rate Futures
Clearing Member who has the smallest net asset value at the time
determined by the Exchange, the Interest Rate Futures Clearing
Member who has the second smallest net asset value, and the Interest
Rate Futures Clearing Member who has the third smallest net asset
value shall be aggregated.
(5)

The largest amount among the aggregate amounts of the Reference
PML Amounts obtained in accordance with Article 12-2.1(4) above
shall be the remaining loss amount on each Calculation Date.

(6)

With respect to each trading day during the period of 6 months
preceding each Calculation Date, the remaining loss amount shall becalculated for each such trading day in the manner set forth in Article
12-2.1 (1) though (5) above, among which the largest amount shall be
the largest remaining loss amount. In such case, “each Calculation
Date” in each formula is deemed to be replaced with “such trading
day”.

(7)

The aggregate amount of the Interest Rate Futures Clearing Deposits to
be deposited and maintained shall be obtained by deducting the amountof default compensation reserve for Interest Rate Futures contracts
from the largest remaining loss amount.

(8)

The absolute value of the difference between the short position and thelong position of Interest Rate Futures contracts held by an Interest Rate
Futures Clearing Member on each Calculation Date multiplied by the
trading unit of such Interest Rate Futures contract, the largest value ofthe absolute values of the volatility of daily settlement price duringconsecutive two trading days in the volatility sampling period and thedaily settlement price on each Calculation Date shall be aggregatedwith respect to all the Interest Rate Futures contracts.

(9)

The shortfall of the Exchange Margin against the maximum volatility
shall be calculated by deducting the margin requirement of such
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Interest Rate Futures Clearing Member on each Calculation Date fromthe amount obtained in accordance with Article 12-2.1(8) above.
(10)

The aggregate amount of the Interest Rate Futures Clearing Deposits to
be deposited and maintained obtained in accordance with Article
12-2.1(7) above deducted by the number of Interest Rate Futures
Clearing Members multiplied by 50 million yen shall be prorated basedon the shortfall of the Exchange Margin against the maximum volatility
with respect to an Interest Rate Futures Clearing Member obtained inaccordance with Article 12-2.1(9) above.

(11)

The amount obtained in accordance with Article 12-2.1(10) above withrespect to an Interest Rate Futures Clearing Member added by 50
million yen shall be the amount of the Interest Rate Futures Clearing
Deposit to be deposited and maintained by such Interest Rate Futures
Clearing Member.

12-2.2 Any matters deemed necessary by the Exchange in connection with thecalculation set forth in Article 12-2.1 above shall be prescribed by the Exchange fromtime to time.

Article 12-2-2. New Interest Rate Futures Clearing Deposit Requirement after
Cooling Off Period for Interest Rate Futures
12-2-2.1
The amount of Interest Rate Futures Clearing Deposit to be depositedas calculated in the manner separately prescribed by the Exchange specified in Article
40-4.3 of the Clearing Regulations shall be the amount obtained by applying mutatis
mutandis Article 12-2 hereof on a business day six (6) business days preceding theApplicable Date for Updated Requirement Amount of Interest Rate Futures (meaning the“Applicable Date for Updated Requirement Amount of Interest Rate Futures defined in
Article 40-4.3 of the Clearing Regulations) as a special Calculation Date for Interest Rate
Futures. In such case, the “each Calculation Date” in Article 12-2.1 is deemed to be
replaced with “special Calculation Date for Interest Rate Futures”.
12-2-2.2

The Exchange shall notify the Interest Rate Futures Clearing Memberof the amount of Interest Rate Futures Clearing Deposit to be deposited on the business
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day immediately following the special Calculation Date for Interest Rate Futures.

Article 12-2-3. Amount of Special Purpose Cash Collateral
The amount of Special Purpose Cash Collateral for Interest Rate Futures to bedeposited as calculated in the manner separately prescribed by the Exchange specified in
Article 40-6.1 of the Clearing Regulations shall be calculated for each Interest Rate
Futures Clearing Member other than the Defaulting Interest Rate Futures Clearing
Member (hereinafter referred to as the “Other Interest Rate Futures Clearing Member”)
in the manner set forth below:(1)

On each trading day during a Cooling Off Period for Interest Rate
Futures, an Amount of Variation Equivalent for Interest Rate Futures(meaning the Amount of Variation Equivalent for Interest Rate Futures
defined in Article 40-5.2(1) of the Clearing Regulations) shall becalculated in the manner set forth below:(a)Article 12-2-2 hereof shall apply mutatis mutandis and, by
regarding each such trading day as a Calculation Date, anamount equivalent to the calculatory amount of Interest Rate
Futures Clearing Deposit to be deposited (hereinafter referred
to as the “Calculatory Interest Rate Futures Clearing Deposit
Equivalent”) shall be calculated.

(b)

An amount as the basis for calculation of Variation Equivalent
for Interest Rate Futures (hereinafter referred to as the“Calculation Base Amount for Interest Rate Futures”) shall becalculated in the manner set forth in a, b, and c below inaccordance with the category of dates set forth in a, b, and c,
respectively:
a. Start date of Cooling Off Period for Interest Rate Futures
The larger of Initial Requirement of Interest Rate Futures
Clearing Deposit (meaning the Initial Requirement ofInterest Rate Futures Clearing Deposit defined in Article
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40.5 of the Clearing Regulations) applicable to such Cooling
Off Period and the Calculatory Interest Rate Futures
Clearing Deposit Equivalent on the start date of the Cooling
Off Period for Interest Rate Futures shall be the Calculation
Base Amount.
b. Trading day immediately following the start date
The larger of the Calculation Base Amount for Interest Rate
Futures in an above and the Calculatory Interest Rate
Futures Clearing Deposit Equivalent on the trading day
immediately following the start date shall be the Calculation
Base Amount for Interest Rate Futures.
c. Each trading day from the second trading day after the startdate to the last day
The larger of the Calculation Base Amount for Interest Rate
Futures on the immediately preceding trading day and the
Calculatory Interest Rate Futures Clearing Deposit
Equivalent on each such trading day shall be the Calculation
Base Amount for Interest Rate Futures on such trading day.
(c)

(2)

The Calculation Base Amount for Interest Rate Futures of the
day deducted by the Initial Requirement of Interest Rate
Futures Clearing Deposit shall be the Amount of Variation
Equivalent for Interest Rate Futures on each trading day
during the Cooling Off Period for Interest Rate Futures.

On each trading day during a Cooling Off Period for Interest Rate
Futures, an Amount of Additional Contribution Equivalent for Interest
Rate Futures (meaning the Additional Contribution Equivalent forInterest Rate Futures defined in Article 40-5.2(2) of the Clearing
Regulations) as the aggregate sum of the Amount of First Additional
Clearing Contribution Equivalent for Interest Rate Futures and theAmount of Second Additional Clearing Contribution Equivalent forInterest Rate Futures set forth below in the following mannerrespectively:
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(a)Amount of First Additional Clearing Contribution Equivalent
for Interest Rate Futures
An amount equivalent to the excess of the amount of losses
incurred by the Exchange due to default by an Interest Rate
Futures Clearing Member over the compensation for losses
under Articles 40.1, 40.2and 40.3 of the Clearing Regulations,
if any, shall be prorated among other Interest Rate Futures
Clearing Members in proportion to the respective Initial
Requirement of Interest Rate Futures Clearing Deposit of suchother Interest Rate Futures Clearing Members; provided,
however, the amount calculated under this (a) shall not exceed
the Initial Requirement of Interest Rate Futures Clearing
Deposit of each Interest Rate Futures Clearing Member.

(b)

Amount of Second Additional
Equivalent for Interest Rate Futures

Clearing

Contribution

With respect to an amount equivalent to the excess of theamount of losses incurred by the Exchange due to default by
an Interest Rate Futures Clearing Member over thecompensation for losses under Article 40.1, Article 40.2,
Article 40.3, Article 40.4 and Article 40.6 of the Clearing
Regulations, if any, an amount equivalent to such excess shallbe prorated among Surviving Clearing Members making
Second Additional Clearing Contribution for Interest Rate
Futures in the liquidation period specified in Article 40.15 of
the Clearing Regulations in proportion to the total sum ofamounts of cash settlement variation equivalent for liquidation
to be received by the Surviving Clearing Members making
Second Additional Clearing Contribution for Interest Rate
Futures deducted by the total sum of amounts of cash
settlement variation equivalent for liquidation to be paid by
the Surviving Clearing Members making Second Additional
Clearing Contribution for Interest Rate Futures as determinedby the Exchange from time to time (only to the extent that
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such amount is positive) based on the cash settlement
variation relating to the Interest Rate Futures contracts and
L-T Link Position of the Surviving Clearing Members making
Second Additional Clearing Contribution for Interest Rate
Futures as well as the option premium and option values(meaning the value determined by the Exchange from time totime with respect to the position held by the Other Interest
Rate Futures Clearing Member during the liquidation period
by multiplying the Daily Settlement Price of the option insuch liquidation period by the sum of position) relating to theoptions on Three-month Euroyen Futures and the options on
Three-month TONA Futures.
(c)

The aggregate sum of the amount calculated under (a) above
and the amount calculated under (b) above shall be theAmount of Additional Contribution Equivalent for Interest
Rate Futures on each trading day of such Cooling Off Period
for Interest Rate Futures.

Article 12-3. Amount of Daily Futures Clearing Deposit
12-3.1 The amount of Daily Futures Clearing Deposit to be deposited and maintained
which is calculated in the manner separately determined by the Exchange as set forth in
Article 31.3 of the Clearing Regulations shall be calculated for each Daily Futures
Clearing Member by the following steps:(1)

PML (Probable Maximum Loss) Base Amount shall be obtained inaccordance with the following formula with respect to a Daily Futures
Clearing Member.
PML Base Amount = the absolute value of the difference between the
short positions and the long positions for each type of FX Daily
Futures contracts held by the Daily Futures Clearing Member on eachCalculation Date, one of which is the First Calculation Date (meaninga business day six (6) business days preceding the first business day of
a month) and the other is the Second Calculation Date (meaning a
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business day six (6) business days preceding the fifteenth day of amonth (if such day falls under a Japanese bank holiday, the business
day immediately following such day which is a Japanese banking day))x trading unit x volatility of FX Settlement Prices with respect to the
FX Daily Futures contracts during consecutive two trading days in thevolatility sampling period (meaning the period from thecommencement date determined by the Exchange through eachCalculation Date) with respect to the FX Daily Futures contracts (if thecommencement date of the volatility sampling period is before the dayon which such FX Daily Futures contract is listed, including thevolatility during consecutive two trading days deemed appropriate by
the Exchange as the price of the financial index underlying such FX
Daily Futures contract during the period from the commencement dateof the volatility sampling period through the day on which such FX
Daily Futures contract is listed; the same interpretation shall apply in
Article 12-3.1(8) below) x FX Settlement Price with respect to the FX
Daily Futures contracts on each Calculation Date (if such FX Daily
Futures contract is a Cross Currency Pairs transaction defined in
Article 2 (20) of the Special Provisions for Trading Regulations for FX
Daily Futures Transactions (hereinafter referred to as the “FX Special
Provisions”), further multiplied by the FX Settlement Price of the Yen
Currency Pairs transaction (meaning the “Yen Currency Pairs
transaction” defined in Article 2(19) of the FX Special Provisions
which is, if such Cross Currency Pairs transaction is a Largetransaction (meaning a Large transaction as defined in Article 2 (23) of
the FX Special Provisions; which interpretation shall equally apply inthis Article 12-3.1(1)), the Yen Currency Pairs transaction of the Largetransaction for the Term Currency, or, if such Cross Currency Pairs
transaction is a Non-large transaction (meaning a Non-large transaction
as defined in Article 2 (24) of the FX Special Provisions; whichinterpretation shall equally apply in this Article 12-3.1(1)), the Yen
Currency Pairs transaction of the Non-large transaction for the Term
Currency; which interpretation shall equally apply in Articles 35-6.1
and 35-6.2 hereof) with respect to the Term Currency (meaning the“Term Currency” defined in Article 2 (22) of the FX Special
Provisions) of such FX Daily Futures contract on each Calculation
Date + the absolute value of the difference between the long positions
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and the short positions for each type of Equity Index Daily Futurescontracts held by the Daily Futures Clearing Member on eachCalculation Date x trading unit x volatility of Equity Index Settlement
Prices with respect to the Equity Index Daily Futures contracts duringconsecutive two trading days in the volatility sampling period(meaning the period from the commencement date determined by the
Exchange through each Calculation Date) with respect to the Equity
Index Daily Futures contracts (if the commencement date of thevolatility sampling period is before the day on which such Equity
Index Daily Futures contract is listed, including the volatility duringconsecutive two trading days deemed appropriate by the Exchange as
the price of the financial index underlying such Equity Index Daily
Futures contract during the period from the commencement date of thevolatility sampling period through the day on which such Equity Index
Daily Futures contract is listed; the same interpretation shall apply in
Article 12-3.1(8) below) x Equity Index Settlement Price with respect
to the Equity Index Daily Futures contracts on each Calculation Date
(2)

The PML Amount shall be obtained in accordance with the following
formula with respect to a Daily Futures Clearing Member:
PML Amount = Aggregate of all PML Base Amounts + shortfall of FX
Exchange Margin and Equity Index Exchange Margin for houseaccount position on each Calculation Date + (shortfall of FX Exchange
Margin and Equity Index Exchange Margin for Customer accountposition and Securities, etc. Clearing-Brokering Contracts on eachCalculation Date – advanced deposits of FX Exchange Margin andEquity Index Exchange Margin on each Calculation Date (if it becomesa negative number, deemed as zero))(3)

The Reference PML Amount shall be obtained in accordance with thefollowing formula with respect to a Daily Futures Clearing Member:
Reference PML Amount = PML Amount – {(deposited FX Exchange
Margin for house account position on the each Calculation Date ±FX variation (meaning the FX variation specified in Article 90-8.1 of
the Clearing Regulations; if the FX variation is positive, such positive
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value shall be added to the deposited FX Exchange Margin and if it isnegative, such value shall be deducted from the deposited FX
Exchange Margin) + the aggregate value of the product of FX Margin
reference amount of an FX Daily Futures contract for Customer
account position and Securities, etc. Clearing-Brokering Contracts on
the trading day immediately preceding each Calculation Date and thelarger of the short position and the long position with respect to such
FX Daily Futures contract held (hereinafter referred to as the “MAXPositions” in this Article) calculated for all of the FX Daily Futurescontracts for each type + (deposited Equity Index Exchange Margin forhouse account position on each Calculation Date ± Equity Index
variation (meaning the Equity Index variation specified in Article
90-19 of the Clearing Regulations; if the Equity Index variation ispositive, such positive value shall be added to the deposited Equity
Index Exchange Margin and if it is negative, such value shall be
deducted from the deposited Equity Index Exchange Margin) + theaggregate value of the product of Equity Index Margin reference
amount of an Equity Index Daily Futures contract for Customer
account position and Securities, etc. Clearing-Brokering Contracts on
the trading day immediately preceding each Calculation Date and theabsolute value of the short position and the long position with respect
to such Equity Index Daily Futures contract held (hereinafter referred
to as the “Net Position” in this Article) calculated for all of the Equity
Index Daily Futures contracts for each type}(4)

With respect to each set of Reference PML Amounts obtained inaccordance with Article 12-3.1(3) above, the Reference PML Amountsof the Daily Futures Clearing Member whose Reference PML Amountis the largest among the relevant set, the Daily Futures Clearing
Member who has the smallest net asset value at the time determined by
the Exchange and the Daily Futures Clearing Member who has thesecond smallest net asset value shall be aggregated.

(5)

The largest amount among the aggregate amounts of the Reference
PML Amounts obtained in accordance with Article 12-3.1(4) above
shall be the remaining loss amount on each Calculation Date.

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(6)With respect to each trading day during the period of 6 months
preceding each Calculation Date, the remaining loss amount shall becalculated for each such trading day in accordance with the procedures
set forth in Article 12-3.1 (1) though (5) above, among which thelargest amount shall be the largest remaining loss amount. In suchcase, the “each Calculation Date” in each formula is deemed to be
replaced with “such trading day”.

(7)

The aggregate value of the Daily Futures Clearing Deposit to bedeposited shall be the largest remaining loss amount obtained pursuant
to Article 12-3.1 (6) above deducted by the default compensation
reserve for Daily Futures contracts.

(8)

The amount equivalent to shortfall of FX Exchange Margin against
maximum volatility shall be calculated in accordance with thefollowing formula with respect to a Daily Futures Clearing Member.
The amount equivalent to shortfall shall be the aggregate value of theamounts calculated for all of the FX Daily Futures contracts for eachtype:
Amount equivalent to shortfall of FX Exchange Margin = (the Net
Position of an FX Daily Futures contract held by a Daily Futures
Clearing Member on each Calculation Date x trading unit of such FX
Daily Futures contract x the largest value of the absolute values of thevolatility(Note) of FX Settlement Prices during consecutive two trading
days in the volatility sampling period x the FX Settlement Price oneach Calculation Date - the MAX Position of an FX Daily Futurescontract held by the Daily Futures Clearing Member on eachCalculation Date x the FX Margin reference amount of the FX Daily
Futures contract (provided, with respect to an FX Market Maker, theamount calculated in accordance with Article 22-4.1 of the Regulationsfor Margin and Unsettled Contracts for FX Daily Futures
Transactions)) x a factor applicable to the Daily Futures Clearing
Member as prescribed by the Exchange(Note) With respect to the absolute values of the volatility, if the second
largest value (hereinafter referred to as the “Second Value” in this Item)
18

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Clearing Regulationsmultiplied by 2 is not greater than the largest value, the Second Value
shall be used.
(9)

The amount equivalent to shortfall of Equity Index Exchange Margin
against maximum volatility shall be calculated in accordance with thefollowing formula with respect to a Daily Futures Clearing Member.
The amount equivalent to shortfall shall be the aggregate value of theamounts calculated for all of the Equity Index Daily Futures contracts
for each type:
Amount equivalent to shortfall of Equity Index Exchange Margin =(the Net Position of an Equity Index Daily Futures contract held by a
Daily Futures Clearing Member on each Calculation Date x trading
unit of such Equity Index Daily Futures contract x the largest value ofthe absolute values of the volatility(Note) of Equity Index Settlement
Prices during consecutive two trading days in the volatility sampling
period x the Equity Index Settlement Price on each Calculation Date the Net Position of an Equity Index Daily Futures contract held by the
Daily Futures Clearing Member on each Calculation Date x the Equity
Index Margin reference amount of the Equity Index Daily Futurescontract (provided, with respect to an Equity Index Market Maker, theamount calculated in accordance with Article 4-2.1 and Article 4-2.2 of
the Regulations for Margin and Unsettled Contracts for Equity Index
Daily Futures Transactions)) x a factor applicable to the Daily Futures
Clearing Member as prescribed by the Exchange(Note) With respect to the absolute values of the volatility, if the second
largest value (hereinafter referred to as the “Second Value” in this Item)
multiplied by 2 is not greater than the largest value, the Second Value
shall be used.

(10)

The aggregate amount shall be obtained by adding up the amounts
obtained in accordance with Article 12-3.1(8) and (9).

(11)

The aggregate amount of the Daily Futures Clearing Deposit to bedeposited and maintained obtained in accordance with Article 12-3.1(7)above deducted by the number of Daily Futures Clearing Members
19

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Clearing Regulationsmultiplied by 5 million yen shall be prorated among the Daily Futures
Clearing Members based on the amount obtained in accordance with
Article 12-3.1(10) above.
(12)

The amount obtained in accordance with Article 12-3.1(11) above withrespect to a Daily Futures Clearing Member added by 5 million yen
shall be the amount of the Daily Futures Clearing Deposit to bedeposited and maintained by such Daily Futures Clearing Member.

12-3.2 In each Item of Article 12-3.1 above, with respect to Equity Index Daily Futurescontracts, the necessary calculation shall be made for each issue of the applicable Equity
Index Daily Futures contracts, respectively.
12-3.3 Any matters deemed necessary by the Exchange in connection with thecalculation set forth in Articles 12-3.1 and 12-3.2 above shall be prescribed by the
Exchange from time to time.

Article 12-3-2. (Deleted)

Article 12-4. (Deleted)

Article 12-4-2. (Deleted)

Article 12-5. Amount of FX Clearing Futures Clearing Deposit
12-5.1 The amount of FX Clearing Futures Clearing Deposit to be deposited andmaintained which is calculated in the manner separately determined by the Exchange as
set forth in Article 31.4 of the Clearing Regulations shall be calculated for each FX
Clearing Futures Clearing Member by the following steps:(1)

PML (Probable Maximum Loss) Base Amount shall be obtained inaccordance with the following formula with respect to an FX Clearing
Futures Clearing Member.
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PML Base Amount = the amount of the short position or the longposition (meaning the amount of short position or long position thathas newly arisen to the FX Clearing Futures Clearing Member byrollover under Article 90-27 of the Clearing Regulations; the sameinterpretation shall apply in Article 12-5.1 (8) below) for each type of
FX Clearing Futures contracts held by the FX Clearing Futures
Clearing Member at the close of the Market Trading Period on eachCalculation Date, one of which is the First Calculation Date (meaninga business day six (6) business days preceding the first business day of
a month) and the other is the Second Calculation Date (meaning abusiness day six (6) business days preceding the fifteenth day of amonth (if such day falls under a Japanese bank holiday, the business
day immediately following such day which is a Japanese banking day))x trading unit x volatility of FX Clearing Settlement Prices with respect
to the FX Clearing Futures contracts during consecutive two trading
days in the volatility sampling period (meaning the period from thecommencement date determined by the Exchange through eachCalculation Date) with respect to the FX Clearing Futures contracts (ifthe commencement date of the volatility sampling period is before theday on which such FX Clearing Futures contract is listed, including thevolatility during consecutive two trading days deemed appropriate by
the Exchange as the price of the financial index underlying such FX
Clearing Futures contract during the period from the commencement
date of the volatility sampling period through the day on which such
FX Clearing Futures contract is listed; the same interpretation shallapply in Article 12-5.1(8) below) x FX Clearing Settlement Price withrespect to the FX Clearing Futures contracts on each Calculation Date
(if such FX Clearing Futures contract is a Cross Currency Pairs
transaction defined in Article 2(10) of the Special Provisions for
Trading Regulations for FX Clearing Futures Transactions (hereinafterreferred to as the “FX Clearing Special Provisions”), further multipliedby the FX Clearing Settlement Price of the Yen Currency Pairs
transaction (meaning the “Yen Currency Pairs transaction” defined in
Article 2(9) of the FX Clearing Special Provisions with respect to theTerm Currency (meaning the “Term Currency” defined in Article 2(12)of the FX Clearing Special Provisions) of such FX Clearing Futures
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contract on each Calculation Date
(2)

The PML Amount shall be obtained in accordance with the following
formula with respect to an FX Clearing Futures Clearing Member:
PML Amount = Aggregate of all PML Base Amounts + shortfall of FX
Clearing Exchange Margin for house account position on eachCalculation Date

(3)

The Reference PML Amount shall be obtained in accordance with thefollowing formula with respect to an FX Clearing Futures Clearing
Member:
Reference PML Amount = PML Amount – {deposited FX Clearing
Exchange Margin for house account position on the each Calculation
Date ± FX Clearing variation (meaning the FX Clearing variation
specified in Article 90-29.1 of the Clearing Regulations; if the FX
Clearing variation is positive, such positive value shall be added to thedeposited FX Clearing Exchange Margin and if it is negative, suchvalue shall be deducted from the deposited FX Clearing Exchange
Margin)}(4)With respect to each set of Reference PML Amounts obtained inaccordance with Article 12-5.1(3) above, the Reference PML Amountsof the FX Clearing Futures Clearing Member whose Reference PML
Amount is the largest among the relevant set and the FX Clearing
Futures Clearing Member who has the smallest net asset value at thetime determined by the Exchange shall be aggregated.

(5)

The largest amount among the aggregate amounts of the Reference
PML Amounts obtained in accordance with Article 12-5.1(4) above
shall be the remaining loss amount on each Calculation Date.

(6)

With respect to each trading day during the period of 6 months
preceding each Calculation Date, the remaining loss amount shall becalculated for each such trading day in accordance with the procedures
set forth in Article 12-5.1 (1) though (5) above, among which the
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largest amount shall be the largest remaining loss amount. In suchcase, the “each Calculation Date” in each formula is deemed to be
replaced with “such trading day”.
(7)

The aggregate value of the FX Clearing Futures Clearing Deposit to bedeposited shall be the largest remaining loss amount obtained pursuant
to Article 12-5.1(6) above deducted by the default compensation
reserve for FX Clearing Futures contracts.

(8)

The amount equivalent to shortfall of FX Clearing Exchange Margin
against maximum volatility shall be calculated in accordance with thefollowing formula with respect to an FX Clearing Futures Clearing
Member. The amount equivalent to shortfall shall be the aggregate
value of the amounts calculated for all of the FX Clearing Futurescontracts for each type:
Amount equivalent to shortfall of FX Clearing Exchange Margin = (theamount of short position or long position of an FX Clearing Futurescontract held by an FX Clearing Futures Clearing Member at the closeof Market Trading Period on each Calculation Date x trading unit ofsuch FX Clearing Futures contract x the largest value of the absolutevalues of the volatility(Note) of FX Clearing Settlement Prices duringconsecutive two trading days in the volatility sampling period x the FX
Clearing Settlement Price on each Calculation Date) - the deposited FX
Clearing Exchange Margin Amount of the FX Clearing Futures
Clearing Member on each Calculation Date
(Note) With respect to the absolute values of the volatility, if the second
largest value (hereinafter referred to as the “Second Value” in this Item)
multiplied by 2 is not greater than the largest value, the Second Value
shall be used.

(9)

The aggregate amount of the FX Clearing Futures Clearing Deposit to
be deposited and maintained obtained in accordance with Article
12-5.1(7) above deducted by the number of FX Clearing Futures
Clearing Members multiplied by 5 million yen shall be prorated among
the FX Clearing Futures Clearing Members based on the amount
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obtained in accordance with Article 12-5.1(8) above.
(10)

The amount obtained in accordance with Article 12-5.1(11) above withrespect to an FX Clearing Futures Clearing Member added by 5 million
yen shall be the amount of the FX Clearing Futures Clearing Deposit to
be deposited and maintained by such FX Clearing Futures Clearing
Member.

12-5.2 Any matters deemed necessary by the Exchange in connection with thecalculation set forth in Article 12-5.1 above shall be prescribed by the Exchange fromtime to time.

Article 12-6. New FX Clearing Futures Clearing Deposit Requirement after
Cooling Off Period
12-6.1 The amount of FX Clearing Futures Clearing Deposit to be deposited as
calculated in the manner separately prescribed by the Exchange specified in Article
41-6.3 of the Clearing Regulations shall be the amount obtained by applying mutatis
mutandis Article 12-5 hereof on a business day six (6) business days preceding theApplicable Date for Updated Requirement Amount (meaning the “Applicable Date for
Updated Requirement Amount defined in Article 41-6.3 of the Clearing Regulations) as a
special Calculation Date. In such case, the “each Calculation Date” in Article 12-5.1 isdeemed to be replaced with “special Calculation Date”.
12-6.2 The Exchange shall notify the FX Clearing Futures Clearing Member of theamount of FX Clearing Futures Clearing Deposit to be deposited on the business day
immediately following the special Calculation Date.

Article 12-7. Amount of Special Purpose Cash Collateral
12-7.1 The amount of Special Purpose Cash Collateral to be deposited as calculated in
the manner separately prescribed by the Exchange specified in Article 41-10.1 of the
Clearing Regulations shall be calculated for each Other FX Clearing Futures Clearing
Member (meaning the Other FX Clearing Futures Clearing Member defined in Article
41-5.1 of the Clearing Regulations) in the manner set forth below:
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(1)On each trading day during a Cooling Off Period, an Amount of
Variation Equivalent (meaning the Amount of Variation Equivalentdefined in Article 41-9.2(1) of the Clearing Regulations) shall becalculated in the manner set forth below:(a)Article 12-6 hereof shall apply mutatis mutandis and, by
regarding each such trading day as a Calculation Date, anamount equivalent to the calculatory amount of FX Clearing
Futures Clearing Deposit to be deposited (hereinafter referred
to as the “Calculatory FX Clearing Futures Clearing Deposit
Equivalent”) shall be calculated.

(b)

An amount as the basis for calculation of Variation Equivalent(hereinafter referred to as the “Calculation Base Amount”)
shall be calculated in the manner set forth in a, b, and c below
in accordance with the category of dates set forth in a, b, andc, respectively:
a. Start date of Cooling Off Period
The larger of Initial Requirement of Clearing Deposit(meaning the Initial Requirement Amount of Clearing
Deposit defined in Article 41-5.2 of the Clearing
Regulations) applicable to such Cooling Off Period and the
Calculatory FX Clearing Futures Clearing Deposit
Equivalent on the start date of the Cooling Off Period shallbe the Calculation Base Amount.
b. Trading day immediately following the start date
The larger of the Calculation Base Amount in an above andthe Calculatory FX Clearing Futures Clearing Deposit
Equivalent on the trading day immediately following thestart date shall be the Calculation Base Amount.
c. Each trading day from the second trading day after the startdate to the last day
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The larger of the Calculation Base Amount on theimmediately preceding trading day and the Calculatory FX
Clearing Futures Clearing Deposit Equivalent on each suchtrading day shall be the Calculation Base Amount on suchtrading day.
(c)

The Calculation Base Amount of the day deducted by theInitial Requirement Amount of Clearing Deposit shall be theAmount of Variation Equivalent on each trading day during
the Cooling Off Period.

(2)

On each trading day during a Cooling Off Period, an Amount of
Additional Contribution Equivalent (meaning the Additional
Contribution Equivalent defined in Article 41-9.2(2) of the Clearing
Regulations) as the aggregate sum of the Amount of First Additional
Clearing Contribution Equivalent for FX Clearing Futures and theAmount of Second Additional Clearing Contribution Equivalent for FX
Clearing Futures set forth below in the following manner respectively:(a)Amount of First Additional Clearing Contribution for FX
Clearing Futures Equivalent
An amount equivalent to the excess of the amount of losses
incurred by the Exchange due to default by an FX Clearing
Futures Clearing Member over the compensation for losses
under Article 41-3 and Article 41-4 of the Clearing
Regulations, if any, shall be prorated among other FX
Clearing Futures Clearing Members in proportion to therespective Initial Requirement Amount of Clearing Deposit ofsuch other FX Clearing Futures Clearing Members; provided,
however, the amount calculated under this (a) shall not exceed
the Initial Requirement of Clearing Deposit of each FX
Clearing Futures Clearing Member.

(b)

AmountofSecondAdditional

Equivalent for FX Clearing Futures
26
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Clearing

Contribution

As an amount equivalent to the excess of the amount of losses
incurred by the Exchange due to default by an FX Clearing
Futures Clearing Member over the compensation for losses
under Article 41-3, Article 41-4, Article 41-5 and Article 41-7of the Clearing Regulations, if any, an amount equivalent to anegative FX Clearing variation of the Defaulting Clearing
Member (meaning the Defaulting Clearing Member defined in
Article 41-2.2 of the Clearing Regulations) on a Loss-incurred
Date (meaning the Loss-incurred Date defined in Article
41-2.3 of the Clearing Regulations) on and after the trading
day on which such excess arises shall be prorated among other
FX Clearing Futures Clearing Members for whom positive FX
Clearing variations arise on such Loss-incurred Date inproportion to the respective positive FX Clearing variations ofsuch other FX Clearing Futures Clearing Members.
(c)

The aggregate sum of the amount calculated under (a) above
and the amount calculated under (b) above shall be theAmount of Additional Contribution Equivalent on eachtrading day of such Cooling Off Period.

12-7.2 Concurrently with the calculation of FX Clearing variation on a Relevant
Loss-incurred Date (meaning the Relevant Loss-incurred Date defined in Article 41-8.2of the Clearing Regulations), the Exchange shall transfer the positive FX Clearing
variations equivalent to the Amount of Second Additional Clearing Contributions
Equivalent for FX Clearing Futures of the Surviving Clearing Members making Second
Additional Clearing Contribution for FX Clearing Futures (meaning the Surviving
Clearing Members making Second Additional Clearing Contribution for FX Clearing
Futures defined in Article 41-8.2 of the Clearing Regulations) to the Special Purpose
Cash Collateral of such Surviving Clearing Members making Second Additional
Clearing Contribution for FX Clearing Futures.

Article 13.
13.1

Adjustment of Advised Volume of Offsetting Transaction

The adjustment of the advised volume of Resale or Repurchase as set forth in27

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Article 42.3 of the Clearing Regulations shall be made in the following manners with the
breakdown of whether for a customer account or for a house account with respect to eachcontract month:(1)

If the advised Resale volume exceeds the volume of the sale contracts
executed at the bid or offer submitted by the Trading Member on the
trading day on which the Resale is made plus the volume of the L-T
Link Short Positions that have arisen for the account of such Trading
Member on the same trading day (hereinafter called the “Day-to-Day
Sale Contract Volume” in this Article and Article 14 below), the Resaleof such Day-to-Day Sale Contract Volume shall be deemed notified.

(2)

If the advised Repurchase volume exceeds the volume of the purchase
contracts executed at the bid or offer submitted by the Trading Member
on the trading day on which the Repurchase is made plus the volume of
the L-T Link Long Positions that have arisen for the account of such
Trading Member on the same trading day (hereinafter called the“Day-to-Day Purchase Contract Volume” in this Article and Article 14
below), the Repurchase of such Day-to-Day Purchase Contract Volume
shall be deemed notified.

(3)

If the total of the advised Resale volume and the advised Repurchasevolume exceeds either (i) the total of (x) the volume of the shortpositions as at the close of the trading day immediately preceding the
trading day on which such Resale or Repurchase, as the case may be, ismade (or the volume of the short positions adjusted by the volume of
the transferred positions if any position transfer occurred after the said
close) and (y) the Day-to-Day Sale Contract Volume on the date ofsuch Resale or Repurchase (hereinafter called the “Resale Volume” inthis Article) or (ii) the total of (xx) the volume of the long positions as
at the close of the trading day immediately preceding the trading day
on which such Resale or Repurchase, as the case may be, is made (orthe volume of the long positions adjusted by the volume of thetransferred positions if any position transfer occurred after the said
close) and (yy) the Day-to-Day Purchase Contract Volume on the dateof such Resale or Repurchase (hereinafter called the “Repurchase
Volume” in this Article), the Resale or Repurchase shall be deemed
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notified so that the volume after the notification shall be either of thefollowings:

13.2

(a)

Where the Repurchase Volume exceeds the Resale Volume,the volume of the short positions on the trading day on which
the Repurchase or the Resale is executed shall be deemed
zero, whilst the volume of the long positions on such trading
day shall be deemed the volume of the Repurchase Volume
minus the Resale Volume; and(b)

Where the Resale Volume exceeds the Repurchase Volume,the volume of the short positions on the trading day on which
the Repurchase or the Resale is executed shall be deemed thevolume of the Resale Volume minus the Repurchase Volume,whilst the volume of the long positions on such trading day
shall be deemed zero.

The adjustment of the advised volume of Resale or Repurchase set forth in

Article 43.3 of the Clearing Regulations shall be conducted by applying mutatis
mutandis the provisions of each item of Article 13.1 above, whereby “L-T Link Short
Positions that have arisen for the account of such Trading Member” referred to in Article
13.1(1) above shall be read as “Clearing-undertaken Short Positions that have arisen for
the account of the Designated Clearing Member of such Non-Clearing Member”, “L-T
Link Long Positions that have arisen for the account of such Trading Member” referred
to in Article 13.1(2) above shall be read as “Clearing-undertaken Long Positions thathave arisen for the account of the Designated Clearing Member[(s)] of such
Non-Clearing Member”, and “volume of the short positions” and “volume of the longpositions” each referred to in Article 13.1(3) above shall be read as “volume of the
Clearing-undertaken Short Positions of the Designated Clearing Member[(s)]” and“volume of the Clearing-undertaken Long Positions of the Designated Clearing
Member[(s)]”, respectively.

Article 14.

Manner of Notification of Offsetting Transaction

The manner of filing of notifications of offsetting transactions as designated to
be prescribed by the Exchange pursuant to Article 44 of the Clearing Regulations shall
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be as follows:(1)

With respect to Interest Rate Futures contracts, to notify the Exchangeof the distinction of Resale or Repurchase for each Interest Rate
Futures contract that has been executed or each L-T Link Position thathas arisen (hereinafter called “individual notification” in this Article
and Article 15 below); or(2)

With respect to Interest Rate Futures contracts, to notify the Exchangeof the volume of the Resale portion of the Day-to-Day Sale Contract
Volume and the volume of the Repurchase portion of the Day-to-Day
Purchase Contract Volume, as broken down into whether for acustomer account or for a house account with respect to each contract
month (hereinafter called “bulk notification” in this Article and Article
15 below);(3)

With respect to FX Daily Futures contracts, to file offsetting
notifications pursuant to Article 90-9-2 of the Clearing Regulations;
and

(4)

Article 15.
15.1

With respect to Equity Index Daily Futures contracts, to file offsetting
notifications pursuant to Article 90-22 of the Clearing Regulations.

Notification Period for Offsetting Transaction

The period for filing of notification of offsetting transactions for Interest Rate

Futures contracts, as designated to be prescribed by the Exchange under Article 44 of the
Clearing Regulations, shall be (i) in the case of individual notification, from the time of
execution of the relevant offsetting transaction up until 5:00 p.m. of the business day on
which there occurs the day session of the trading day on which such offsetting
transaction was executed, and (ii) in the case of bulk notification, from the time when the
Exchange gives the notice of settlement data generation for the current day after 5:00
p.m. of the business day immediately preceding the business day on which there occurs
the day session of the trading day on which such offsetting transaction was executed up
until 5:00 p.m. of the business day on which there occurs such day session. Provided,
however, that with respect to a contract month on its last trading day, the notification
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shall be filed within the period set forth below:(i)in the case of individual notification, from the time of execution of therelevant offsetting transaction up until 4:00 p.m. of the business dayon which there occurs the day session of the trading day on whichsuch offsetting transaction was executed, and(ii)

in the case of bulk notification, from the time when the Exchange
gives the notice of settlement data generation for the current day after
5:00 p.m. of the business day immediately preceding the business dayon which there occurs the day session of the trading day on whichsuch offsetting transaction was executed up until 4:00 p.m. of thebusiness day on which there occurs such day session; and15.2
The period for filing of notification of offsetting transactions for FX Daily
Futures contracts, as designated to be prescribed by the Exchange under Article 90-9-2.1of the Clearing Regulations, shall be as follows in each of the following cases:(1)

In a case where both or either of the positions to be settled has arisen
under an FX Daily Futures transaction executed on the trading day on
which the notification is filed:
From the time when the said FX Daily Futures transaction is executed
until ten (10) minutes after the close of the Market Trading Period for
the FX Daily Futures transaction to be settled of the same trading day;
and

(2)

In a case where both of the positions to be settled have arisen from arollover: As set forth below.
(a)Where the trading day for the FX Daily Futures transaction to
be settled falls on the first trading day of the week:
From the opening of the pre-open period for FX Daily Futures
Transactions except for Chinese Yuan-Japanese Yen FX Daily
Futures transaction, Korean Won-Japanese Yen FX Daily
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Futures transaction and Indian Rupee-Japanese Yen FX Daily
Futures transaction on the trading day until ten (10) minutes
after the close of the Market Trading Period for the FX Daily
Futures transaction to be settled of the same trading day(b)Where the trading day for the FX Daily Futures transaction to
be settled does not fall on the first trading day of the week:
From the opening of the Market Trading Period for FX Daily
Futures Transactions except for Chinese Yuan-Japanese Yen
FX Daily Futures transaction, Korean Won-Japanese Yen FX
Daily Futures transaction and Indian Rupee-Japanese Yen FX
Daily Futures transaction on the trading day until ten (10)minutes after the close of the Market Trading Period for the
FX Daily Futures transaction to be settled of the same trading
day

15.3

The period for filing of notification of offsetting transactions for Equity Index

Daily Futures contracts to be prescribed by the Exchange under Article 90-22.1 of the
Clearing Regulations, shall be as follows in each of the following cases:(1)

In a case where both or either of the positions to be settled has arisen
under an Equity Index Daily Futures transaction executed on the trading
day on which the notification is filed:
From the time when the said Equity Index Daily Futures transaction is
executed until ten (10) minutes after the close of the Market Trading
Period for the Equity Index Daily Futures transaction to be settled of thesame trading day; and(2)

In a case where both of the positions to be settled have arisen from arollover: As set forth below.
(a)Where the trading day for the Equity Index Daily Futurestransaction to be settled falls on the first trading day of the
week:

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From the opening of the pre-open period for FX Daily Futures
Transactions except for Chinese Yuan-Japanese Yen FX Daily
Futures transaction, Korean Won-Japanese Yen FX Daily
Futures transaction and Indian Rupee-Japanese Yen FX Daily
Futures transaction on the trading day until ten (10) minutes
after the close of the Market Trading Period for the Equity
Index Daily Futures transaction to be settled of the same
trading day(b)Where the trading day for the Equity Index Daily Futurestransaction to be settled does not fall on the first trading day of
the week:
From the opening of the Market Trading Period for FX Daily
Futures Transactions except for Chinese Yuan-Japanese Yen
FX Daily Futures transaction, Korean Won-Japanese Yen FX
Daily Futures transaction and Indian Rupee-Japanese Yen FX
Daily Futures transaction on the trading day until ten (10)minutes after the close of the Market Trading Period for the
Equity Index Daily Futures transaction to be settled of thesame trading day

15.4
Notwithstanding Articles 15.2 and 15.3 above, when the Exchange deems it
necessary to do so, the Exchange may re-designate the period for filing of notification of
offsetting transactions for FX Daily Futures contracts and Equity Index Daily Futurescontracts.
15.5
The filing of a notification of offsetting transaction, if made pursuant to Articles
15.2 through 15.4 above after the close of a Market Trading Period, shall be deemed tohave been made on the trading day on which the same Market Trading Period has ended.

Article 16.

Correction of Content of Notification of Offsetting Transaction, etc.

16.1
The matters designated to be prescribed by the Exchange pursuant to Article 44of the Clearing Regulations in connection with correction of content of the notification of
offsetting transaction shall be as follows:
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(1)Notification of correction of content of notification of offsetting
transaction
A Trading Member who needs to correct the content of the notificationof an offsetting transaction made by it for truly an unavoidable reason
shall (after obtaining the prior consent of its Designated Clearing
Member in the case of a Trading Member who is a Non-Clearing
Member) notify the Exchange of the content of the correction within
the period from the business day on which there occurs the day sessionof the trading day on which it executed such offsetting transaction up
until the time set forth in (a) or (b) below. Provided, however, that nocorrection may be made to the notification of the offsetting transaction
with respect to any market derivatives transaction on its last trading
day:
(a)

For market derivatives contract or L-T Link Position executedfor the Trading Member’s own account:By 10:00 a.m. of the business day (or, with respect to a
Japanese Yen Interest Rate Remote Trading Member, thesecond business day) immediately following the said business
day; and(b)

For market derivatives contract or L-T Link Position based ona customer’s order:
By 10:00 a.m. of the third (3rd) business day from the saidbusiness day.

(2)

Confirmation of results of correction of content of notification
A Trading Member who filed the notification of correction set forth in
Article 16(1) above shall confirm the results of the correction made by
the Exchange immediately after such correction is made.

16.2

Notwithstanding Article 16.1 above, correction of content of notification of
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offsetting transaction shall not be accepted with respect to FX Daily Futures transactions
and Equity Index Daily Futures transactions.

Article 17.

Manner of Determination of Daily Settlement Price, etc.

17.1
The Indicative Period set forth in Article 45.2 of the Clearing Regulations shallbe a specific period determined by the Exchange from time to time as necessary, whichshall fall within the period from the opening of the relevant trading day’s evening session
to the close of the same trading day’s day session.
17.2
The daily settlement price for a contract month in a case where there is nocontract price for the contract month during the Indicative Period set forth in Article 45.3of the Clearing Regulations shall be calculated in the following manner:(1)

The daily settlement price for the said specific contract month shall bein the amount of the daily settlement price for the most recent contract
month as of the relevant trading day adjusted based on the difference
between the daily settlement price for the said specific contract monthand the daily settlement price for the said most recent contract month
as of the trading day immediately preceding such trading day;provided, however, that,(2)

If the price cannot be calculated in accordance with Article 17.2(1)above or if the Exchange determines that the price calculated inaccordance with Article 17.2(1) above is inappropriate, the Exchange
shall determine the daily settlement price for the said specific contract
month in the amount which it deems appropriate by referring to theprevailing market quotes and some other factors.

Article 18.

Payment of Money between Exchange and Clearing Member

The deadline for the payment of money prescribed under Articles 46.1 and 47.1of the Clearing Regulations shall be as provided for in the Japanese Yen Settlement
Regulations.

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Article 19.

Payment of Money between Clearing Member and Non-Clearing
Member

The deadline for the payment of money prescribed under Articles 46.2 and 47.2of the Clearing Regulations shall be the deadline set forth in Article 18 above (or, withrespect to a Non-Clearing Member who is also Japanese Yen Interest Rate Remote
Trading Member, the deadline designated by its Designated Clearing Member).

Article 20.

(Deleted)

Article 21.

Rate Quotation Time Applied in Determination of Final Settlement
FigureIf no market derivatives contract is executed and no position arises with respect
to any contract month on its last trading day, the Exchange shall have the option not todetermine the final settlement figure for such contract month.

Articles 22 and 23

Article 24.
24.1(Deleted)

Present Value Formula, etc.

The formula designated to be separately prescribed by the Exchange in Articles

70.1, 72.1, 74.1 and 76.1 of the Clearing Regulations shall be as set forth in “Present
Value Formula” attached hereto as Schedule 1.
24.2
The manner designated to be separately prescribed by the Exchange in Articles
70.2, 72.2, 74.2 and 76.2 of the Clearing Regulations shall be as set forth in “Linear
Interpolation Method” attached hereto as Schedule 2.

Article 25.

Payment of Option Premium between Exchange and Clearing
Member36

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The deadline for payment of option premium referred to in Articles 77.1, 77.3,
90-33.1 and 90-33.3 of the Clearing Regulations shall be as per the provisions of theJapanese Yen Settlement Regulations.

Article 26.

Payment of Option Premium between Clearing Member andNon-Clearing Member

The deadline for payment of option premium referred to in Articles 77.2, 77.4,
90-33.2 and 90-33.4 of the Clearing Regulations shall be the deadline set forth in Article
25 above (or, with respect to a Non-Clearing Member who is also Japanese Yen Interest
Rate Futures Remote Trading Member, the deadline designated by its Designated
Clearing Member).

Article 27.

(Deleted)

Article 28.

Adjustment of Advised Volume of Offsetting Transaction under
Option Contract

28.1
The adjustment of the advised volume of Resale or Repurchase as set forth in
Articles 81.3 and 90-37.3 of the Clearing Regulations shall be made in the following
manners with the breakdown of whether for a customer account or for a house accountwith respect to each series:(1)

If the advised Resale volume exceeds the volume of the sale contracts
executed at the bid or offer submitted by the Trading Member on the
trading day on which the Resale is made (hereinafter called the“Day-to-Day Sale Contract Volume” in this Article and Article 29
below), the Resale of such Day-to-Day Sale Contract Volume shall bedeemed notified.

(2)

If the advised Repurchase volume exceeds the volume of the purchase
contracts executed at the bid or offer submitted by the Trading Member
on the trading day on which the Repurchase is made (hereinafter called
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the “Day-to-Day Purchase Contract Volume” in this Article and Article
29 below), the Repurchase of such Day-to-Day Purchase Contract
Volume shall be deemed notified.
(3)

If the total of the advised Resale volume and the advised Repurchasevolume exceeds either (i) the total of (x) the volume of the shortpositions as at the close of the trading day immediately preceding the
trading day on which such Resale or Repurchase, as the case may be, ismade (or the volume of the short positions adjusted by the volume of
the transferred positions if any position transfer occurred after the said
close) and (y) the Day-to-Day Sale Contract Volume on the date ofsuch Resale or Repurchase (hereinafter called the “Resale Volume” inthis Article) or (ii) the total of (xx) the volume of the long positions as
at the close of the trading day immediately preceding the trading day
on which such Resale or Repurchase, as the case may be, is made (orthe volume of the long positions adjusted by the volume of thetransferred positions if any position transfer occurred after the said
close) and (yy) the Day-to-Day Purchase Contract Volume on the dateof such Resale or Repurchase (hereinafter called the “Repurchase
Volume” in this Article), the Resale or Repurchase shall be deemed
notified so that the volume after the notification shall be either of thefollowings:(a)Where the Repurchase Volume exceeds the Resale Volume,the volume of the short positions on the trading day on which
the Repurchase or the Resale is executed shall be deemed
zero, whilst the volume of the long positions on such trading
day shall be deemed the volume of the Repurchase Volume
minus the Resale Volume; and(b)

Where the Resale Volume exceeds the Repurchase Volume,the volume of the short positions on the trading day on which
the Repurchase or the Resale is executed shall be deemed thevolume of the Resale Volume minus the Repurchase Volume,whilst the volume of the long positions on such trading day
shall be deemed zero.

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28.2
The adjustment of the advised volume of Resale or Repurchase set forth in
Articles 82.3 and 90-38.3 of the Clearing Regulations shall be conducted by applying
mutatis mutandis the provisions of each item of Article 28.1 above, whereby “volume ofthe short positions” and “volume of the long positions” each referred to in Article 28.1(3)above shall be read as “volume of the Clearing-undertaken Short Positions of the
Designated Clearing Member[(s)]” and “volume of the Clearing-undertaken Long
Positions of the Designated Clearing Member[(s)]”, respectively.

Article 29.

Manner of Notification of Offsetting Transaction under Option
Contract

The manner of filing of notifications of offsetting transactions as designated to
be prescribed by the Exchange pursuant to Articles 83 and 90-39 of the Clearing
Regulations shall be as follows:(1)

To notify the Exchange of the distinction of Resale or Repurchase foreach Three-month Euroyen futures option contract or Three-month
TONA futures option contract that has been executed (hereinafter
called “individual notification” in this Article and Article 30 below); or(2)

To notify the Exchange of the volume of the Resale portion of the
Day-to-Day Sale Contract Volume and the volume of the Repurchaseportion of the Day-to-Day Purchase Contract Volume, as broken down
into whether for a customer account or for a house account with respect
to each series (hereinafter called “bulk notification” in this Article andArticle 30 below).

Article 30.

Notification Period for Offsetting Transaction under Option Contact
and Correction of Content of Notification Thereof, etc.

The period for filing of notification of offsetting transactions and the procedures forcorrection of content thereof as designated to be prescribed by the Exchange under
Articles 83 and 90-39 of the Clearing Regulations, shall be as follows:(1)

Period during which notification of offsetting transaction may be filed
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A notification of Resale or Repurchase set forth in Articles 81, 82,
90-37 and 90-38 of the Clearing Regulations shall be filed (i) in thecase of individual notification, from the time of execution of therelevant offsetting transaction up until 5:00 p.m. of the business day on
which there occurs the day session of the trading day on which suchoffsetting transaction was executed, and (ii) in the case of the bulk
notification, from the time when the Exchange gives the notice ofsettlement data generation for the current day after 5:00 p.m. of thebusiness day immediately preceding the business day on which there
occurs the day session of the trading day on which such offsetting
transaction was executed up until 5:00 p.m. of the business day on
which there occurs such day session. Provided, however, that withrespect to any market derivatives transaction on its last trading day, thenotification shall be filed by 2:45 p.m. of the business day on which
there occurs the day session of such last trading day.
(2)

Notification of correction of content of notification of offsetting
transaction
A Trading Member who needs to correct the content of the notificationof an offsetting transaction made by it with respect to a Three-month
Euroyen futures option contract or a Three-month TONA futures option
contract for truly an unavoidable reason shall (after obtaining the priorconsent of its Designated Clearing Member in the case of a Trading
Member who is a Non-Clearing Member) notify the Exchange of thecontent of the correction by the deadlines set forth in (a) and (b) below
from the business day on which there occurs the day session of the
trading day on which it executed such offsetting transaction:(a)

For Three-month Euroyen futures option contract orThree-month TONA futures option contract executed for the
Trading Member’s own account:By 10:00 a.m. of the next business day (or, with respect to a
Japanese Yen Interest Rate Remote Trading Member, 10:00
a.m. of the second business day)
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(b)For Three-month Euroyen futures option contract orThree-month TONA futures option contract based on acustomer’s order:
By 10:00 a.m. of the third business day(3)

Restriction upon correction of content of notification of offsetting
transaction
Notwithstanding Article 30(2) above, a Trading Member may not do
the following corrections:(a)Correction of the content of notification of any market
derivatives transaction on its last trading day; and(b)

Correction of the content of notification of: (x) offsetting of ashort position which the Trading Member was assigned (or the
Clearing-undertaken Short Position of its Designated Clearing
Member if the Trading Member is a Non-Clearing Member,the Clearing-undertaken Short Position of its Designated
Clearing Member; the same interpretation shall apply
hereinbelow in this Article) or a long position on which the
Trading Member exercised the option (or the
Clearing-undertaken Long Position of its Designated Clearing
Member if the Trading Member is a Non-Clearing Member;the same interpretation shall apply hereinbelow in this Article)
after filing of the corresponding offsetting notification, or (y)designating such short position or long position as a shortposition or long position to be offset(4)

Confirmation of results of correction of content of notification
A Trading Member who filed the notification of correction set forth in
Article 30(2) above shall confirm the results of the correction made by
the Exchange immediately after such correction is made.

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Article 31.

Exercise Notice Period, etc.

31.1
A notification of exercise of option under Articles 85.1 and 90-41.1 of the
Clearing Regulations shall be filed within the period from the time when the Exchange
gives the notice of settlement data generation for the current day after 5:00 p.m. of thebusiness day immediately preceding the option exercise date up until 5:00 p.m. of theoption exercise date. Provided, however, that with respect to any series of option on thelast day of its option exercise period, the notification shall be filed by 2:45 p.m. of suchlast day.
31.2
A notification of non-exercise of option under Articles 86.1 and 90-42.1 of the
Clearing Regulations shall be filed within the period from the close of the day session of
the last day of the option exercise period up until 2:45 p.m. of the same day.

Article 32.

Assignment

The assignment of short positions to each Trading Member (or the Designated
Clearing Member of such Trading Member if such Trading Member is a Non-Clearing
Member) for such member’s exercise of option as set forth in Articles 87.1 and 90-43.1of the Clearing Regulations, shall be made by subdividing the same into a minimum
trading unit.

Article 33.

Time of Decreasing in Positions resulting from Exercise

The time at which the Exchange decreases the volume of trading units of theoptions to be exercised by or assigned to a Trading Member from the positions held bysuch Trading Member as set forth in each paragraph of Articles 88 and 90-44 of the
Clearing Regulations, shall be 5:00 p.m. of the relevant option exercise date or the dateof assignment by the Exchange, or shall be 2:45 p.m. in the case of the last day of theoption exercise period (which is the time of execution of Three-month Euroyen futurescontracts or Three-month TONA futures contracts resulting from exercise of the options).

Article 34.

Time of Execution of Japanese Yen Interest Rate Futures Contracts
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resulting from Exercise and Assignment
The time at which a contract of the underlying futures shall be deemed to havebeen executed resulting from the exercise of options or in relation to the assignment each
set forth in Articles 89 and 90-45 of the Clearing Regulations, shall be 5:00 p.m. of therelevant option exercise date or the date of assignment by the Exchange, or shall be 2:45
p.m. in the case of the last day of the option exercise period.

Article 35.

Manner of Determination of Daily Settlement Price

The Daily Settlement Price designated to be calculated by the Exchange in
Articles 90.2 and 90-46.2 of the Clearing Regulations shall be calculated in the manner
specified in “Theoretical Option Price Formula” attached hereto as Schedule 3.
Provided, however, that if the Exchange determines the figure thus calculated to beinappropriate, the Daily Settlement Price shall be the figure determined by the Exchange
from time to time.

Article 35-2. Manner of Determination, etc. of FX Settlement Price35-2.1 The Indicative Period as set forth in Article 90-2.2 of the Clearing Regulations
shall be a specific period close to the close of the Market Trading Period of the relevant
trading day, which is determined by the Exchange from time to time as necessary.
35-2.2 With respect to the calculation of FX settlement price where there is no contract
price for an FX Daily Futures Contract during the Indicative Period specified in Article
90-2.3 of the Clearing Regulations, the Exchange shall determine the FX settlement pricefor the said FX Daily Futures Contract in the amount which it deems appropriate byreferring to the prices of the bids and offers at the close of the Market Trading Period andsome other factors.

Article 35-3. Calculation Method of Swap Point
35-3.1 The calculation method of swap point specified in Article 90-6 of the Clearing
Regulations shall be as set forth in each Item below:
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(1)With respect to any given one (1) kind of FX Daily Futures contract,
where either of the aggregate volume of MM short positions (meaning
the MM short position specified in Article 26.1 of the FX Special
Provisions); which interpretation shall equally apply hereinafter) andthe aggregate volume of MM long positions (meaning the MM longposition specified in Article 26.1 of the FX Special Provisions; whichinterpretation shall equally apply hereinafter) held by all Market
Makers exceeds the other, the swap point shall be determined withreference to the table below, according to the number of the average ofreferential swap points (meaning the referential swap points specified
in Article 11.4 of the FX Special Provisions) quoted by each Market
Maker to the Exchange with respect to the larger position as shown in
the table below:
Number of referential swap
points quoted
3 or below

Swap points
Average of the referential swap
points quoted(2)

4 or 5

Average of the referential swap
points quoted excluding thelargest and the smallest ones

6 or larger

Average of the referential swap
points quoted excluding the 2largest and the 2 smallest ones

Where the aggregate volume of MM short positions and the aggregate
volume of MM long positions set forth in Article 35-3.1(1) above are
equal, the swap point shall be determined with reference to the tablebelow, according to the average of the average figure of the referential
swap points with respect to the short position and the average figures of
the referential swap points with respect to the long position quoted byeach Market Maker to the Exchange respectively as shown in the tablebelow:
Number of referential swap
points quoted
6

Average of the referential swap
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Swap points

points quoted excluding the 2largest and the 2 smallest ones
7 to 11

Average of the referential swap
points quoted excluding the 3largest and the 3 smallest ones

12 or larger

Average of the referential swap
points quoted excluding the 4largest and the 4 smallest ones

35-3.2 Notwithstanding Article 35-3.1 above, if the Exchange deems that there exists a
Market Maker who quoted the referential swap point significantly deviated from thosequoted by other Market Makers, the Exchange may exclude the said referential swap
point from the basis for calculation of swap point set forth in Article 35-3.1 above.
35-3.3 If a fraction in decimal places arises in the calculation of swap point set forth in
Article 35-3.1 above, the first decimal place shall be rounded off to the nearest whole
number.
35-3.4 If the Exchange determines that the swap point calculated by the method under
Article 35-3.1 through 35-3.3 above is inappropriate, or the number of the referential
swap points quoted is less than the least number specified in the table contained in
Article 35-3.1(2) above, the Exchange shall determine the swap point which it deems
appropriate by referring to the prevailing market conditions and some other factors.

Article 35-4. Exception to Resale or Repurchase in connection with FX Daily
Futures Transactions
35-4.1 The case otherwise prescribed by the Exchange as specified in Article 90-9.3 of
the Clearing Regulations shall be the case where the same Daily Futures Clearing
Member establishes two or more accounts for the transactions on its own account inconnection with FX Daily Futures transactions and deposits the FX Exchange Margin
into each account separately, and executes a purchase contract for the different accountfrom the account in which its short position is held or executes a sale contract for thedifferent account from the account in which its long position is held.
35-4.2 The case otherwise prescribed by the Exchange as specified in Article 90-9-2.3
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of the Clearing Regulations shall be the case where the same FX Daily Futures
Non-Clearing Member establishes two or more accounts for the transactions on its own
account in connection with FX Daily Futures transactions and deposits the FX Exchange
Margin into each account separately, and executes a purchase contract for the different
account from the account in which its short position is held or executes a sale contract
for the different account from the account in which its long position is held.

Article 35-5. Settlement of Fraction Arising from Calculation of Cross Currency
Pairs Transaction Profit or Loss
For the purpose of calculation of profit or loss from a Cross Currency Pairs
transaction (meaning the Cross Currency Pairs transaction specified in Article 2(20) of
the FX Special Provisions; which interpretation shall equally apply hereinafter in this
Article 35-5 and in Article 35-6 below), the profit or loss in Japanese yen for each kindof the Cross Currency Pairs transaction shall be calculated, by first calculating the profit
or loss in the denomination of the (meaning the Term Currency specified in Article 2(22)of the FX Special Provisions; which interpretation shall equally apply in Article 35-6
below) in that kind of the Cross Currency Pairs transaction, and the profit or loss in such
Term Currency being further converted into Japanese yen, with any fraction of less thanone (1) Japanese yen resulting from the conversion being rounded to the nearest decimal
point.

Article 35-6. Procedures taken in Cross Currency Pairs Transaction
35-6.1 With respect to a Cross Currency Pairs transaction for the Daily Futures
Clearing Member’s house account or for each of its Customer, if a positive FX variationarises therefrom in the denomination of the Term Currency, the Exchange shall receivethat FX variation from that Daily Futures Clearing Member and pay to the relevant Daily
Futures Clearing Member the said FX variation converted into Japanese yen at the FX
settlement price of the Yen Currency Pairs transaction with respect to the said Term
Currency.
35-6.2 With respect to a Cross Currency Pairs transaction for the Daily Futures
Clearing Member’s house account or for each of its Customer, if a negative FX variationarises therefrom in the denomination of the Term Currency, the Exchange shall pay that46
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FX variation to that Daily Futures Clearing Member and receive from the relevant Daily
Futures Clearing Member the said FX variation converted into Japanese yen at the FX
settlement price of the Yen Currency Pairs transaction with respect to the said Term
Currency.
35-6.3 When the Exchange takes the procedures specified in Article 35-6.1 above, theExchange shall pay to the Daily Futures Clearing Member who is the designated FXMarket Maker the same amount as the Exchange received from the Daily Futures
Clearing Member, and receive from the same Daily Futures Clearing Member who is thedesignated FX Market Maker the same amount as the Exchange paid to the Daily Futures
Clearing Member.
35-6.4 When the Exchange takes the procedures specified in Article 35-6.2 above, theExchange shall receive from the Daily Futures Clearing Member who is the designated
FX Market Maker the same amount as the Exchange paid to the Daily Futures Clearing
Member, and pay to the same Daily Futures Clearing Member who is the designated FXMarket Maker the same amount as the Exchange received from the Daily Futures
Clearing Member.
35-6.5 Whenever the Exchange deems it especially necessary to do so, the procedures
set forth in Articles 35-6.3 and 35-6.4 above shall not apply to a Daily Futures Clearing
Member who is a designated FX Market Maker with respect to the Cross Currency Pairs
Transaction designated by the Exchange.

Article 36.

Manner of Determination, etc. of Equity Index Settlement Price

36.1
The specific period of time determined by the Exchange as referred to in Article
90-12.2 of the Clearing Regulations shall be a period of time close to the close of theMarket Trading Period of the relevant trading day, which is determined by the Exchange
from time to time as necessary.
36.2
When an Equity Index Settlement Price is calculated where there is no contract
price for the relevant Equity Index Daily Futures Contract during the specific period oftime as referred to in Article 90-12.3 of the Clearing Regulations, the Exchange shalldetermine the Equity Index Settlement Price for the said Equity Index Daily Futures
Contract in the amount which it deems appropriate by referring to the prices of the bids
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and offers at the close of the Market Trading Period and some other factors.

Article 37.

Manner of Determination of Daily Interest Rate Amount

37.1
A daily interest rate amount to be calculated in the manner separately prescribedby the Exchange pursuant to Article 90-16.1 of the Clearing Regulations shall becalculated in accordance with the following formula for each issue of Equity Index Daily
Futures contract at the close of every trading day:
I ＝S ×u × (interest rate) × (d / 365)
Where:
I : daily interest rate amount which arises from rollover per position withrespect to Equity Index Daily Futures contract
S : Equity Index Settlement Price of each issue of the Equity Index Daily
Futures contract on the trading day on which ends the Market Trading
Period during which the rollover is executedu : 10 for DJIA Daily Futures contracts with Reset Date and NASDAQ-100
Daily Futures contracts with Reset Date, and 100 for Equity Index Daily
Futures contracts other than DJIA Daily Futures contracts with Reset Dateand NASDAQ-100 Daily Futures contracts with Reset Dated : number of days for which the settlement date is postponed by the rollover(Note)

Any decimal point of the figure obtained as “I” above shall bediscarded to make the figure a whole Japanese Yen.

37.2
The interest rate used in the formula in Article 37.1 above shall be the interest
rate set forth in each Item below for each type of Equity Index Daily Futures contract.
(1)

Nikkei 225 Daily Futures contract with Reset Date
The target for unsecured overnight call rate at the close of the trading
day determined by the Bank of Japan’s Monetary Policy Meeting.
Provided, however, if such target is determined as a range of rates, theinterest rate used in the formula in Article 37.1 above shall be the48

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average of the highest and the lowest of such range.
(2)

FTSE 100 Daily Futures contract with Reset Date, DAX® Daily
Futures contract with Reset Date, DJIA Daily Futures contract with
Reset Date, NASDAQ-100 Daily Futures contracts with Reset Dateand Russell 2000 Daily Futures contracts with Reset Date
An average of interest rates calculated by the following formula foreach trading day in the week immediately preceding the week in which
the trading day prescribed in Article 37.1 falls (hereinafter called as the“Applicable Week”) shall be the interest rate used in the formula in thesaid Article 37.1 and such average shall be the interest rate on eachtrading day in the Applicable Week, provided, however, if the
Exchange deems such rate inappropriate, the interest rate shall be suchinterest rate as determined by the Exchange as appropriate:
Interest Rate = {(F+D-S)/(d/360)}/S
Where:
F: The price of a futures transaction, the underlying asset of which isthe financial index underlying the relevant Daily Futures contract(meaning the futures listed on the overseas financial instruments
market located in the United Kingdom with respect to FTSE 100 Daily
Futures contracts with Reset Date, Federal Republic of Germany withrespect to DAX® Daily Futures contracts with Reset Date and theUnited States of America with respect to DJIA Daily Futures contracts
with Reset Date, NASDAQ-100 Daily Futures contracts with Reset
Date and Russell 2000 Daily Futures contracts with Reset Date), at thetime determined by the Exchange
D: Value equivalent to ex-dividend index during the period d pertaining
to the Equity Index underlying the relevant Daily Futures contract,provided, however, 0 for DAX® Daily Futures contracts with Reset
Date
S: Price of the Equity Index underlying the relevant Daily Futures
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contract at the time determined by the Exchange
d: Number of days up until the last trading day of the relevant Daily
Futures contract(3)

Gold ETF Daily Futures contracts with Reset Date, WTI ETF Daily
Futures contracts with Reset Date, Silver ETF Daily Futures contracts
with Reset Date and Platinum ETF Daily Futures contracts with Reset
Date
Euro Yen TIBOR (Tokyo Inter-Bank Offered Rate) for the latest
twelve-month period published by General Incorporated Association
JBA TIBOR Administration at the close of trading day

Article 38.
38.1

Manner of Calculation of Dividend AmountWith respect to Nikkei 225 Daily Futures contracts with Reset Date, thedividend amount to be calculated in the manner separately prescribed by the Exchange as
referred to in Article 90-17.1 of the Clearing Regulations shall be calculated inaccordance with the following formula:
BD={(D1×50/ F1) + (D2×50/ F2) + … + (DN×50/ FN)} / V×100
Where:
BD: dividend amount per position with respect to Nikkei 225 Daily Futurescontract with Reset Date
D1: amount of expected dividend on the 1st of N issues on which payment ofdividend is expected
F1: price adjustment factor of the 1st of N issues on which payment of dividend
is expected
D2: amount of expected dividend on the 2nd of N issues on which payment ofdividend is expected
F2: price adjustment factor of the 2nd of N issues on which payment of dividend
is expected
DN: amount of expected dividend on the N(st/nd/rd/th) of N issues on which
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payment of dividend is expected
FN: price adjustment factor of the N(st/nd/rd/th) of N issues on which payment
of dividend is expected
V : divisor determined by Nikkei Inc. for the purpose of calculation of Nikkei
225(Note) The figure obtained as “BD” above shall be rounded to the nearest
whole Japanese Yen.
38.2
The “price adjustment factor” referred to in Article 38.1 above shall be thefigure determined by Nikkei Inc. with respect to each issue for adjustment of the pricelevel of constituents used for calculation of indices.
38.3
With respect to FTSE 100 Daily Futures contracts with Reset Date, the dividend
amount to be calculated in the manner separately prescribed by the Exchange as referred
to in Article 90-17.1 of the Clearing Regulations shall be calculated in accordance withthe following formula:
BD ＝C×100
Where:
BD : dividend amount per position with respect to FTSE 100 Daily Futurescontracts with Reset Date
C : figure calculated by FTSE International Limited as equity index adjustment
factor for FTSE 100 Daily Futures contracts with Reset Date to reflect
fluctuation caused by payment of dividend(Note) The figure obtained as “BD” above shall be rounded to the nearest whole
Japanese Yen.
38.4
The dividend amount for DJIA Daily Futures contract with Reset Date,
NASDAQ-100 Daily Futures contracts with Reset Date and Russell 2000 Daily Futurescontracts with Reset Date calculated in the manner separately prescribed by the
Exchange in accordance with Article 90-17.1 of the Clearing Regulations shall becalculated by reference to the following formula:

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BD = (D1 + D2 + … + DN) / V x u
Where:
BD : Dividend amount per position in connection with a DJIA Daily Futurescontract with Reset Date, NASDAQ-100 Daily Futures contracts with
Reset Date and Russell 2000 Daily Futures contracts with Reset Date
D1 : The estimated amount of the dividend for the first issue among N types ofissues with respect to which the dividend is expected to be paid
D2 :The estimated amount of the dividend for the second issue among N types
of issues with respect to which the dividend is expected to be paid
DN : The estimated amount of the dividend for the Nth issue among N types ofissues with respect to which the dividend is expected to be paidV:
For DJIA Daily Futures contract with Reset Date, divisor prescribed by
S&P Dow Jones Indices LLC in the calculation of the Dow Jones
Industrial Average, for NASDAQ-100 Daily Futures contracts with Reset
Date, divisor prescribed by Nasdaq, Inc. in the calculation of the
NASDAQ-100 and for Russell 2000 Daily Futures contracts with Resetu:

Date, divisor prescribed by FTSE International Limited in the calculationof the Russell 2000
10 for DJIA Daily Futures contracts with Reset Date and NASDAQ-100
Daily Futures contracts with Reset Date, and 100 for Russell 2000 Daily
Futures contracts with Reset Date

(Note) If the amount of BD includes a fraction less than one (1) yen, such fraction
shall be rounded to the nearest yen.
38.5
Even when the amount of expected dividend on an issue comprising the Equity
Index traded under the relevant Equity Index Daily Futures contract is changed after thelast trading date for dividend entitlement of such issue, the Exchange shall not modify
the dividend amount therefor once it has been calculated pursuant to Article 38.1, 38.3 or
38.4 above.
38.6
The “the last trading date for dividend entitlement” referred to in Article 38.5
above shall mean the last day of trading as of which the acquirer of the issue shallbecome entitled to the dividend.

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38.7
If the Exchange finds that the dividend amount calculated in the manners
prescribed in Articles 38.1, 38.3 and 38.4 above is not appropriate or otherwise deems it
necessary to do so, the Exchange shall determine the dividend amount as it deems
appropriate.

Article 39.

Exception to Resale or Repurchase in connection with Equity Index
Daily Futures Transactions

39.1
The case otherwise prescribed by the Exchange as referred to in Article 90-20.3of the Clearing Regulations shall be the case where any one (1) Daily Futures Clearing
Member establishes more than one (1) house account for an Equity Index Daily Futurestransaction and deposits the Equity Index Exchange Margin in each such accountindividually, and executes a purchase contract for any such account which is different
from the account in which it holds the corresponding short position, or executes a sale
contract for any such account which is different from the account in which it holds thecorresponding long position.
39.2
The case otherwise prescribed by the Exchange as referred to in Article 90-21.3of the Clearing Regulations shall be the case where any one (1) Equity Index Daily
Futures Non-Clearing Member establishes more than one (1) house account for an
Equity Index Daily Futures transaction and deposits the Equity Index Exchange Margin
in each such account individually, and executes a purchase contract for any such accountwhich is different from the account in which it holds the corresponding short position, or
executes a sale contract for any such account which is different from the account inwhich it holds the corresponding long position.

Article 39-2. Manner of Determination, etc. of FX Clearing Settlement Price
The Indicative Period as set forth in Article 90-25.2 of the Clearing Regulations
shall be a specific period close to the close of the Market Trading Period of the relevant
trading day, which is determined by the Exchange from time to time as necessary.

Article 39-3. Calculation Method of Swap Point

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39-3.1 The calculation method of swap point specified in Article 90-28 of the Clearing
Regulations shall be as set forth in each Item below:(1)

An LP Trading Member shall quote a referential swap point (meaning
the referential swap point defined in Article 20.1 of the FX Clearing
Special Provisions; the same interpretation shall equally apply
hereinbelow) to the Exchange for each type of the FX Clearing Futurescontracts for which the LP Trading Member has filed the notification of
conduct of transactions with one or more FX Clearing Futures Trading
Members pursuant to Article 12.1 of the FX Clearing Special
Provisions.

(2)

The Exchange shall, for each type of FX Clearing Futures contracts,
calculate an average of the quoted referential swap points remaining
after excluding the largest and the smallest figures as the swap point;provided, however, if the number of quoted swap points falls under anyof the numbers set forth below, the Exchange may use the value set
forth in each item below respectively as the referential swap point:(a)

Not more than three: An average of all referential swap points
quoted(b)

Not less than six: An average of the quoted referential swap
points remaining after excluding the referential swap points of
the number deemed appropriate by the Exchange counting
from the largest and the smallest quoted referential swap
points respectively

39-3.2 Notwithstanding Article 39-3.1 above, if the Exchange deems that there exit an
LP Trading Member who quoted the referential swap point significantly deviated fromthose quoted by other LP Trading Members, the Exchange may exclude the saidreferential swap point from the basis for calculation of swap point set forth in Article
39-3.1 above.
39-3.3 In the case that the number of referential swap points as the basis for calculationof swap point is not more than three, if deemed appropriate by the Exchange, theExchange may regard the value deemed appropriate as the referential swap point in
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consideration of the prevailing market rates, etc. and may calculate the swap point inaccordance with Article 39-3.1.
39-3.4 If any fraction beyond three decimal places arises in the calculation of swap
point set forth in Article 39-3.1 above, the fourth decimal place shall be rounded to thesecond decimal place.
39-3.5 If the Exchange determines that the swap point calculated by the method under
Article 39-3.1 through 39-3.4 above is inappropriate, the Exchange shall determine theswap point which it deems appropriate by referring to the prevailing market conditions
and some other factors.

Article 39-4. Settlement of Fraction Arising from Calculation of FX Clearing
Futures Transaction Profit or Loss
For the purpose of calculation of an amount of fixed Mark-to-Market Variation
and an amount of swap point set forth in Article 90-29.1 (1) and (2) of the Clearing
Regulations, any fraction of less than one (1) Japanese yen shall be discarded if suchamount is positive and shall be rounded up to the nearest Japanese yen if such amount isnegative.

Article 40.

Position Transfer Period

The period referred to in Article 94 of the Clearing Regulations during which a
position transfer notification shall be filed, as prescribed to be separately determined by
the Exchange under Article 97 thereof, shall be the respective dates and times set forth ineach Item below in accordance with the category set forth in each such Item.
(1)

Interest Rate Futures contracts or L-T Link Position: period from thetime when Exchange gives the notice of settlement data generation forthe current day after 5:00 p.m. of the business day immediately
preceding the business day on which the position transfer occurs, up
until 10:00 a.m. of the business day on which the position transfer
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(2)Article 41.

FX Daily Futures contracts or Equity Index Daily Futures contracts:
Up until the business day immediately preceding the day on which theposition transfer occurs

Procedures for Hearing

The procedures for hearing set forth in Articles 14-8, 15-2, 15-2-2, 15-2-3 and15-3 of the Clearing 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 Clearing Member on whom the hearing is to be
conducted.

(2)

The Clearing 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.

Article 42.

Method of Allocation of Positions to be Allocated for Early
Termination

The positions to be allocated for early termination specified in Article 15-10-3.1
of the Clearing Regulations shall be allocated by the Exchange in the order set forth in
the following Items for each account type of house account and customer account ofInterest Rate Futures Clearing Members other than the Clearing Member subject to earlytermination (meaning the Clearing Member subject to early termination specified in
Article 15-10-3.1 of the Clearing Regulations):(1)

The Exchange shall extract the positions with respect of which theclassification of long or short is opposite, after having netting off longpositions and short positions for each series of the positions to beallocated for early termination for each account type of house accountand customer account of the Interest Rate Futures Clearing Member,and calculate the sum of such position (hereinafter called as the “Netposition per series”).
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(2)In Item (1) above, if the Interest Rate Futures Clearing Member sets up
sub-accounts for the breakdown of Customer account positions(hereinafter called as the “Sub Account(s)”), the Exchange shallcalculate the Net position per series for each such Sub Account.

(3)

The Exchange shall prorate the positions per series of the positions tobe allocated for early termination in proportion to the total sum of the
Net position per series for each account type of house account andcustomer account (where Sub Accounts have been set up, for each such
Sub Account; the same interpretation shall be equally apply
hereinbelow) held by the Interest Rate Future Clearing Member as the
position to be allocated to each such Interest Rate Futures Clearing
Member.

(4)

The Exchange shall allocate the position to be allocated to each Interest
Rate Futures Clearing Member pursuant to Item (3) above in
proportion to the Net position per series for each account type of houseaccount and customer account (where Sub Accounts have been set up,
for each such Sub Account; the same interpretation shall be equally
apply hereinbelow) held by the Interest Rate Future Clearing Member
as the position to be allocated for early termination.

Article 43.

Order of Coverage by Interest Rate Futures Clearing Deposit

The coverage of the losses specified in Article 40.10 of the Clearing Regulations
shall be made in accordance with the classification of the losses set forth in each Item
below pursuant to the provisions of the relevant Item below:(1)

If the amount of the losses to be covered pursuant to Article 40.5 of the
Clearing Regulations exceeds the total sum of the Initial Requirement
Amount of Interest Rate Futures Clearing Deposit of the Other Interest
Rate Futures Clearing Members (meaning the Other Interest Rate
Futures Clearing Members specified in Article 40.4 of the Clearing
Regulations):
The losses shall be covered by the full amount of Initial Requirement
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Amount of Interest Rate Futures Clearing Deposit(2)

Other than (1) above:
The losses shall be covered by the amount prorated in proportion to therespective Initial Requirement Amount of Interest Rate Futures
Clearing Deposit of the Other Interest Rate Futures Clearing Members(If such amount exceeds the Initial Requirement Amount of Interest
Rate Futures Clearing Deposit, such Initial Requirement Amount ofInterest Rate Futures Clearing Deposit); provided, however, if the
Exchange conducts the Position Liquidation Auction specified in
Article 15-9.5 or Article 15-10.7 of the Clearing Regulations, the losses
shall be covered in the order of the Interest Rate Futures Clearing
Deposit set forth in a., b., and c. below pursuant to the provisions ofeach such sub-item:
a. Interest Rate Futures Clearing Deposit deposited with the Exchangeby the Other Interest Rate Futures Clearing Members who have nottendered bids in the Position Liquidation Auction (hereinafter called as
the “Non-bidding Members” in this Article)
The losses shall be covered by the amount prorated in proportion to therespective Initial Requirement Amount of Interest Rate Futures
Clearing Deposit of the Non-bidding Members (if such amount exceeds
the Initial Requirement Amount of Interest Rate Futures Clearing
Deposit, the Initial Requirement Amount of Interest Rate Futures
Clearing Deposit)b. Interest Rate Futures Clearing Deposit deposited with the Exchangeby the Other Interest Rate Futures Clearing Members who havetendered bids but not won the bids in the Position Liquidation Auction(hereinafter called as the “Position Liquidation Auction Members” inthis Article)
The remaining amount of the losses after deduction of the total sum of
the amounts specified in a. above shall be covered by the amountprorated in proportion to the respective Initial Requirement Amount ofInterest Rate Futures Clearing Deposit of the Position Liquidation
Auction Members (if such amount exceeds the Initial Requirement
Amount of Interest Rate Futures Clearing Deposit, the Initial
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Requirement Amount of Interest Rate Futures Clearing Deposit)c. Interest Rate Futures Clearing Deposit deposited with the Exchangeby the Other Interest Rate Futures Clearing Members who have won
the bids in the Position Liquidation Auction (hereinafter called as the“Successful Bidding Members” in this Article)
The remaining amount of the losses after deduction of the total sum of
the amounts specified in a. above and the total sum of the amounts
specified in b. above shall be covered by the amount prorated inproportion to the respective Initial Requirement Amount of Interest
Rate Futures Clearing Deposit of the Successful Bidding Members (ifsuch amount exceeds the Initial Requirement Amount of Interest Rate
Futures Clearing Deposit, the Initial Requirement Amount of Interest
Rate Futures Clearing Deposit)

SUPPLEMENTARY PROVISIONS
1.
These amended Regulations shall take effect as from July 3, 2015.
2.
Notwithstanding Article 12-3-2.1(1), in the business year 2015, the aggregate
amount of the Second FX Daily Futures Clearing Deposits to be deposited andmaintained by the FX Daily Futures Clearing Members in advance shall be the estimatedloss amount multiplied by zero and the Exchange shall change the aggregate amount of
the Second FX Daily Futures Clearing Deposits to be deposited and maintained by the
FX Daily Futures Clearing Members to the estimated loss amount multiplied by 0.4 by
the end of the business year 2020.
3.
Notwithstanding Article 12-4-2.1(1), in the business year 2015, the aggregate
amount of the Second Equity Index Daily Futures Clearing Deposits to be deposited andmaintained by the Equity Index Daily Futures Clearing Members in advance shall be theestimated loss amount multiplied by zero and the Exchange shall change the aggregate
amount of the Second Equity Index Daily Futures Clearing Deposits to be deposited andmaintained by the Equity Index Daily Futures Clearing Members to the estimated loss
amount multiplied by 0.4 by the end of the business year 2020.

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

SUPPLEMENTARY PROVISIONS
These amended Regulations shall take effect as from June 27, 2016.

SUPPLEMENTARY PROVISIONS
1.
These amended Regulations shall take effect as from February 27, 2017.
2.
After enforcement of these amended Regulations, with respect to the calculationof the amount of Interest Rate Futures Clearing Deposit to be deposited by an Interest
Rate Futures Clearing Member by March 1, 2017, February 21, 2017 shall be the First
Calculation Date.
3.
After enforcement of these amended Regulations, with respect to the calculationof the amount of Daily Futures Clearing Deposit to be deposited initially by a Daily
Futures Clearing Member, February 17, 2017 shall be the First Calculation Datenotwithstanding Article 12-3.1(1) as amended.
4.
Upon enforcement of these amended Regulations, the provisions concerning theSecond FX Daily Futures Clearing Deposit in Paragraph 2 of the supplementaryprovisions dated July 3, 2015 and the provisions concerning the Second Equity Index
Daily Futures Clearing Deposit in Paragraph 3 of the said provisions shall not beapplicable.

SUPPLEMENTARY PROVISIONS
These amended Regulations shall take effect as from July 24, 2017.

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SUPPLEMENTARY PROVISIONS
These amended Regulations shall take effect as from December 18, 2017.

SUPPLEMENTARY PROVISIONS
These amended Regulations shall take effect as from January 22, 2018.

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

SUPPLEMENTARY PROVISIONS
These amended Regulations shall take effect as from February 1, 2021.

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

SUPPLEMENTARY PROVISIONS
These amended Regulations shall take effect as from April 23, 2021.

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SUPPLEMENTARY PROVISIONS
These amended Regulations shall take effect as from December 10, 2021.

SUPPLEMENTARY PROVISIONS
These amended Regulations shall take effect as from February 28, 2022.

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

SUPPLEMENTARY PROVISIONS
These amended Regulations shall take effect as from September 11, 2023.

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Schedule 1

Present Value Formula2m

Present value = 3   Ai d i + 100  d 2m
i =1

Where:
1.
“m” = any of the followings depending on the type of the relevant standardized
Yen interest rate swap contract:(1)

For standardized Two-year Yen interest rate swap contract: 2(2)

For standardized Five-year Yen interest rate swap contract: 5(3)For standardized Seven-year Yen interest rate swap contract: 7(4)

For standardized Ten-year Yen interest rate swap contract: 10

2.
“Ai” = actual number of days elapsed from the interest payment date on the i-1
time (or, where i is 1, the starting date of the relevant standardized Yen interest rate swap
contract) to the interest payment date on the i time (inclusive of first day and exclusive oflast day) divided by 365 (hereinafter called the “annual rate adjustment factor”);
3.
“di” = discount factor applied on the interest payment date on the i time, which is
calculated by reference to the following formula:
Discount factor applied on the first (1st) interest payment date:(1)

d1 = 1 ÷ (1+A1C1) (rounded to the nearest 8th decimal point)
Where:
a. A1 = annual rate adjustment factor applied on the first (1st) interest
payment dateb. C1 = the swap rate applied to the period from the staring date to the first(1st) interest payment date under the standardized Yen interest rate swap
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contract(2)

Discount factor applied on the interest payment dates on the second andsubsequent times:i −1

d i = (1 − C i  Ai d i )  (1 + Ai C i ) (rounded to the nearest 8th decimal
j =1

point)
Where:
a. Ai = annual rate adjustment factor applied on the interest payment date on
the i timeb. Ci = swap rate applied to the period from the staring date to the interest
payment date on the i time under the standardized Yen interest rate swap
contractc. Aj = annual rate adjustment factor applied on each interest payment date on
the first (1st) to the i-1 times (where i is 2, only that for the first (1st)interest payment date)d. dj = discount factor applied on each interest payment date from the first(1st) to the i-1 times (where i is 2, only that for the first (1st) interest
payment date)“d2m” = discount factor applied on the last interest payment date (maturity date),
which is calculated by reference to the formula set forth in 3(2) above.
(Note) The interest payment date referred to above shall fall on the starting date of therelevant standardized Yen interest rate swap contract and each semi-anniversary thereof(if any such anniversary falls on a Japanese bank holiday or British bank holiday, theinterest payment date which would have otherwise fallen on that day shall fall on the day
immediately following such day which shall be a Japanese bank business day and Britishbank business day, and also, if any such anniversary falls on a Japanese bank holiday or
British bank holiday and on the last day of a calendar month, the interest payment date
which would have otherwise fallen on that day shall fall on the day immediately
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preceding such day which is a Japanese bank business day and British bank business day).

Schedule 2

Linear Interpolation Method1.
The swap rate applied to the period from the staring date to any interest payment
date on the odd number of time (excluding the first (1st) time) under the standardized Yeninterest rate swap contract shall be calculated by reference to the following formula:Ci = (AiCi+1+Ai+1Ci-1) ÷(Ai+Ai+1) (rounded to the nearest 3rd decimal point)
Where:(1)

Ai = annual rate adjustment factor applied on the interest payment dateon the i time(2)

Ai+1 = annual rate adjustment factor applied on the interest payment
date on the i+1 time(3)

Ci-1 = swap rate applied to the period from the staring date to theinterest payment date on the i-1 time under the standardized Yeninterest rate swap contract(4)

Ci+1 = swap rate applied to the period from the staring date to theinterest payment date on the i+1 time under the standardized Yeninterest rate swap contract2.
The swap rate applied to the period from the staring date to the first (1st) interest
payment date under the standardized Yen interest rate swap contract shall be calculated byreference to the following formula:
C1 = C2 – (C3 – C2) ×A2÷A3 (rounded to the nearest 3rd decimal point)
Where:(1)

A2 = annual rate adjustment factor applied on the second (2nd) interest
payment date
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(2)A3 = annual rate adjustment factor applied on the third (3rd) interest
payment date(3)

C2 = swap rate applied to the period from the staring date to the second(2nd) interest payment date under the standardized Yen interest rate
swap contract(4)

C3 = swap rate applied to the period from the staring date to the third(3rd) interest payment date under the standardized Yen interest rate
swap contract

Schedule 3

Theoretical Option Price Formula

The theoretical call option price (hereinafter shown as “C”) and the theoreticalput option price (hereinafter shown as “P”) of Three-month Euroyen futures option
contract or Three-month TONA futures option contract shall be calculated by reference tothe following formulae:
C = e −rt [FN(d) − KN(d −  t )]P = C − e − rt (F − K )As used in the above formula, “d” shall be calculated by reference to the following
formula:d = [In (F/K) +  2 t/2]/  t

Where:

e:
t:
K:

F:
daily settlement price of the Three-month Euroyen futurescontract for the Three-month Euroyen futures option contract, and daily
settlement price of the Three-month TONA futures contract for theThree-month TONA futures option contract
Napier's number
number of days elapsed up until the option exercise date / 365
strike priceσ:implied volatility calculated for each series of options in the manner
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r:

N(x):
ln:

prescribed by the Exchange / 100
Three-month Japanese Yen TIBOR as published by General
Incorporated Association JBA TIBOR Administration on the relevant
date divided by 100 and rounded to the nearest 3rd decimal point
cumulative density function of the standard normal distribution wherethe value is x
Napierian logarithm

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