Matters concerning Per Trade Compression Conditions and New Cleared Contracts to Come into
Effect as a Result of Per Trade Compression
September 24, 2015
Amended on April 11, 2016
Amended on October 16, 2017
Japan Securities Clearing Corporation

Japan Securities Clearing Corporation (“JSCC”) sets forth as per attached Annex the mattersconcerning the economic terms to be designated by JSCC which is one of the Per TradeCompression Conditions set forth in Article 30.2.(1).c. of the Handling Procedures of Interest Rate
Swap Business Rules (“Handling Procedures”) and the new Cleared Contract to come into effect as aresult of the Per Trade Compression set forth in Article 30.4 of the Handling Procedures.

1DISCLAIMER: This is the reference translation of the original Japanese document. Japan Securities Clearing
Corporation shall accept no responsibility or liability for damage or loss caused by any error, inaccuracy, ormisunderstanding with regard to this translation. This document may not be reproduced or redistributed in whole orin part without the permission of Japan Securities Clearing Corporation.

Annex1.

Definitions
The terms used in this Annex shall have the meanings used in the Rules as defined in theInterest Rate Swap Clearing Business Rules prescribed by Japan Securities Clearing
Corporation (hereinafter referred to as “JSCC”).

2.

Conditions to be Designated by JSCC as Per Trade Compression Conditions:(1) Conditions concerning the Cleared Contracts to be confirmed by JSCC as Per TradeCompression Conditions shall be the economic terms of the Cleared Contracts other thanthe following:a. Trade Date of the Eligible IRS Transaction;b. Effective Date of the Eligible IRS Transaction;c. Parties to the Eligible IRS Transaction;d. Date of Clearing; ande. Notional Amount.

(2) Notwithstanding the provisions of Sub-item e. of the immediately preceding item, if theNotional Amount has feature of periodic step-down or step-up, wherein the method of such
periodic step-down or step-up is agreed at the execution of the Eligible IRS Transaction andwill not be changed during the term of such IRS Transaction, the Notional Amount as of thedate of confirmation of the Per Trade Compression Conditions and the method of thestep-down or step-up and the amount to be decreased or increased at each time shall be thematters to be confirmed by JSCC as one of the Per Trade Compression Conditions.
3.

Matters to be Designated by JSCC concerning New Cleared Contract to Come into Effect as aResult of Per Trade Compression
The economic terms of new Cleared Contract to come into effect as a result of the Per Trade
Compression shall be identical to the Cleared Contracts to terminate as a result of the Per Trade
Compression except for those specified below, for which the economic terms specified below
shall apply:
2DISCLAIMER: This is the reference translation of the original Japanese document. Japan Securities Clearing
Corporation shall accept no responsibility or liability for damage or loss caused by any error, inaccuracy, ormisunderstanding with regard to this translation. This document may not be reproduced or redistributed in whole orin part without the permission of Japan Securities Clearing Corporation.

(1) Trade Date: Date on which the Per Trade Compression becomes effective;(2) Date of Clearing: Date on which the Per Trade Compression becomes effective;(3) Effective Date of IRS Transaction: The Effective Date closest to the date on which Per
Trade Compression becomes effective among Effective Dates of Cleared Contracts toterminate as a result of the Per Trade Compression;(4) Notional Amounta. When the Cleared Contracts to terminate as a result of the Per Trade Compression
exchange Fixed Amount and Floating Amount:
The difference between the total Notional Amount of the Cleared Contracts in which theClearing Participant is a Fixed Rate Payer and the total Notional Amount of the ClearedContracts in which the Clearing Participant is a Floating Rate Payer in respect of theCleared Contracts to terminate as a result of the Per Trade Compression (the absolutevalue of such difference if negative);b. When the Cleared Contracts to terminate as a result of the Per Trade Compression
exchange Floating Amount and Floating Amount:
The difference between the total Notional Amount of the Cleared Contracts in which theClearing Participant is a Floating Rate Payer of one of the Floating Rate Options and thetotal Notional of the Cleared Contracts in which the Clearing Participant is a Floating Rate
Payer of the other Floating Rate Option in respect of the Cleared Contracts to terminate asa result of the Per Trade Compression (the absolute value of such difference if negative);(5) Fixed Rate Payer
a. In Sub-item a. of the immediately preceding item, if the total Notional Amount of theCleared Contracts in which the Clearing Participant is a Fixed Rate Payer is greater than
the total Notional Amount of the Cleared Contracts in which the Clearing Participant is a
Floating Rate Payer: such Clearing Participant;b. In Sub-item a. of the immediately preceding item, if the total Notional Amount of theCleared Contracts in which the Clearing Participant is a Floating Rate Payer is greater than
the total Notional Amount of the Cleared Contracts in which the Clearing Participant is aFixed Rate Payer: JSCC;
3DISCLAIMER: This is the reference translation of the original Japanese document. Japan Securities Clearing
Corporation shall accept no responsibility or liability for damage or loss caused by any error, inaccuracy, ormisunderstanding with regard to this translation. This document may not be reproduced or redistributed in whole orin part without the permission of Japan Securities Clearing Corporation.

(6) Floating Rate Payer
a. In Sub-item a. of Item (4), if the total Notional Amount of the Cleared Contracts in which
the Clearing Participant is a Fixed Rate Payer is greater than the total Notional Amount ofthe Cleared Contracts in which the Clearing Participant is a Floating Rate Payer: JSCC;
b. In Sub-item a. of Item (4), if the total Notional Amount of the Cleared Contracts in which
the Clearing Participant is a Floating Rate Payer is greater than the total Notional Amountof the Cleared Contracts in which the Clearing Participant is a Fixed Rate Payer: such
Clearing Participant;c. In case of Sub-item b. of Item (4), the relevant Clearing Participant shall be the FloatingRate Payer for the Floating Rate Option in respect of which the Notional Amount of theCleared Contracts is greater and JSCC shall be the Floating Rate Payer for the FloatingRate Option in respect of which the Notional Amount of the Cleared Contract is smaller.

End of Document

4DISCLAIMER: This is the reference translation of the original Japanese document. Japan Securities Clearing
Corporation shall accept no responsibility or liability for damage or loss caused by any error, inaccuracy, ormisunderstanding with regard to this translation. This document may not be reproduced or redistributed in whole orin part without the permission of Japan Securities Clearing Corporation.