ANNUAL REPORTBusiness Report 2012 for the fiscal year ended March 31, 2013

Tokyo Financial Exchange Inc.

To Our Shareholders

First, we would like to express our sincere gratitude
to our shareholders for your continued support of ouroperations and business.
In fiscal 2012, a decelerating trend spread throughout the global economy, reflecting the stagnant
European economy due to the euro crisis and slower
growth in emerging economies, including China. In the
United States, however, signs of an economic recovery
were seen, mainly reflecting improving consumer confidence due to a recovery in the housing market.

Contents
To Our Shareholders… ………………………………… 1 and 2
About Tokyo Financial Exchange… ………………………… 3
Summary of Operating Results… …………………………… 4
Topics in Fiscal Year 2012
1. Efforts to Increase the Trading Volume of Click 365(1) Reducing Tick Sizes of Major Currency Pairs to Three Decimal Places…… 5(2) Expansion of Intermediate Brokers and Agents…… 5

2. Efforts to Improve the Revenue Structure and Conveniencein Interest Rate Futures Contracts(1) Revenue Structure Improvements (Fee Structure Revision)…… 6(2) Increased Convenience (Lowering the Minimum Volume for Block Trades)…… 6

3. Developing New Trading System, for Significant Cost Savings(1) Cost Reduction… ……………………………………… 7(2) Counterplans for System Failures… ……………… 7(3) Adoption of a Network Widely Used by Trading Members… … 7

4. Reducing Operating Costs……………………………………… 7
5. Active Promotion and Publicity(1) Click 365… ……………………………………………… 8(2) Click Kabu 365… ……………………………………… 8(3) Overseas PR……………………………………………… 8
Business Plans and Policies for Fiscal Year 2013………… 9
Financial Statements (Summary) and Market Data…… 10
Corporate Profile…………………………………… Back cover1

Tokyo Financial Exchange Inc.

Although the Japanese economy remained weakagainst the backdrop of the decelerating global economy, it also showed signs of a recovery, attributableto restoration demand from the Great East Japan
Earthquake and the emergence of policy effects.
Particularly after the turn of the year, positive prospects for the economy began to emerge, reflectingt h e e x p e c t a t i o n s f o r t h e n e w g o v e r n m e n t’s
Abenomics policies after the change in administration.
Under these economic conditions, Tokyo Financial
Exchange(TFX) faced a challenging operating environment.
・In short-term money markets, a comprehensive
monetary policy continued. The new government
introduced an inflation target of 2%, while the Bankof Japan instituted an extraordinary monetary easing policy, the first arrow of Abenomics.
As a result, the annual trading volumes of Threemonth Euroyen futures continued to stagnate
throughout the year, declining to 4,989 thousand
lots, a drop of 14.2% from the previous fiscal year.

・In foreign exchange markets, the yen remained
strong against other currencies, reflecting investors’
strong sense of caution due to the sovereign-debt
problems in Europe. In the second half of the fiscal
year, however, the yen depreciated significantly
against the backdrop of expectations for the new
government’s bold monetary policies.
Trading volumes of Click 365, Exchange FX Margin
Contracts, remained lower during 2012 than theirlevel a year ago—mainly due to the application of aseparate self-assessment tax to over-the-countertransactions since January 2012, intensified competition over spreads, and the prolonged appreciationof the yen—but increased after the turn of the year,
thanks to the weaker yen.
As a result, annual trading volumes declined significantly, by 51.9%, from the previous fiscal year, to58,200 thousand lots.
・The stock market remained sluggish in 2012, butturned buoyant after the turn of the year, rising
sharply due to the effects of the new government’s
Abenomics policies.
Annual trading volumes of Click Kabu 3 6 5,E xchange Equit y Index M argin Contrac t s ,increased significantly, by 142.2% year on year, to2,524 thousand lots.
As a result, the trading volume of all products during
fiscal 2012 was 65,718 thousand lots, down 48.7%
from the previous fiscal year. Operating revenues fell
40.9% year on year, to 5,456 million yen.
Although operating expenses were reduced by
19.2% year on year by strongly promoting cost reductions, an operating loss of 581 million yen was posted.

Ordinary loss after adding non-operating revenues
from deposits and gains on investments in government bonds amounted to 378 million yen.
In addition, as a result of posting gains on the salesof investment securities of 510 million yen from selling the Japanese government bonds TFX had held
during the period to secure fund resources for new
trading system development, income before income
taxes came to 131 million yen, down 90.7% from theprevious fiscal year, and net income stood at 55 million yen, down 93.2%.
In the current fiscal year, we will maintain our overall profits by strongly promoting comprehensive measures to increase trading volumes in the Margin
Contracts business to make up for losses in theInterest Rate Futures Contracts business, which
remains weak.
We will also make efforts to sustain the reliabilityof our market operations by smoothly upgrading ourInterest Rate and Margin Contracts trading systems
over the fiscal year.
We sincerely ask our shareholders for your ongoingsupport and cooperation.
June 2013

President and CEO Shozo Ohta

Tokyo Financial Exchange Inc.

2

A bo ut To kyo Fi na nci a l E x c h a n ge
Tokyo Financial Exchange (TFX) contributes to the sound development of the financial markets and the economy of Japanby developing financial instruments markets as public infrastructure related to financial instruments transactions that provide
a superior degree of fairness, reliability, and convenience in accordance with the Financial Instruments and Exchange Act.

TFX, as a comprehensive exchange for financial derivatives, has now listed products that cover all three major sectors for financial derivatives: interest rates , foreignexchange, and stocks, as listed below.

Interest Rate 金利先物等取引事業
Futures Contracts Business

Interest
Rate Sector

Foreign
Exchange Sector

Interest Rate
Futures Contracts(Exchange FX Margin Contracts)(Exchange Equity Index Margin Contracts)(Listed products)
26 trading currency pairs in total(Listed products)
・Nikkei 225 Margin contracts(Listed products)
・Three-month Euroyen futures

・Options on Three-month Euroyen futures
・Over-Night Call Rate futures
・Six-month Euroyen LIBOR futures

3

Margin Contracts BusinessTokyo Financial Exchange Inc.

Click 365

・15 yen currency pairs
・11 cross currency pairs

Stocks Sector
Click Kabu 365

・DAX® Margin contracts
・FTSE100 Margin contracts
・FTSE China 25 Margin contracts

S um m a r y of O p era ti ng R e s u l ts
▪ Financial Accounts – Highlights▪ Market Highlights
Annual Trading Volume(Change from previous fiscal years)

FY2009Operating Revenues 

FY2010FY2011FY2012

Changefrom FY2011

8,532

10,966

9,238

5,456

▲40.9%

Operating Profit or
Loss (▲)  (million yen)

2,525

3,927

1,761

▲ 581

―

Ordinary Profit or
Loss (▲） (million yen)

2,770

4,232

2,086

▲ 378

―

1,728

2,242

807

55

▲93.2%

2,004.01

2,599.02

935.52

63.98▲93.2%

Total Assets

180,674

238,807240,840

249,650+3.7%

Net Assets

21,43323,24423,447

23,071▲1.6%(million yen)

Net Income(million yen)

Net Income
per Share  (yen)(million yen)(million yen)

Net Assets
per Share  (yen)24,843.53

26,942.55

27,178.08

26,742.06▲1.6%

Outline of Financial Results
・Operating revenues declined 40.9% from the previous fiscal year, to 5,456
million yen, reflecting the continued severe sluggishness of Three-month
Euroyen futures and a drop in trading volumes for Click 365.
・Meanwhile, operating expenses decreased 19.2% from the previous
fiscal year, to 6,037 million yen, due to the strong promotion of cost
reductions.
・As a result, operating loss was 581 million yen, and ordinary loss was
378 million yen.
Net income decreased 93.2% from the previous fiscal year, to 55 million yen, as a result of posting gains on sales from selling Japanese
government bonds to secure fund resources for new trading systemdevelopment as extraordinary income.
・Net income per share declined 93.2% year on year, to 63.98 yen, andnet assets per share decreased 1.6%, to 26,742.06 yen.
・Taking into account the significant drop in revenues and profits for the
fiscal year under review, we decided to lower our dividend payments
per share by 200 yen compared with the dividends for the previous fiscal year, to 300 yen, with a dividend payout ratio of 468.9%.

■ Three-month Euroyen futures(in thousands)

FY2009FY2012FY2010FY2011

12,161
11,466
5,816
4,989（▲34.6%） （▲5.7%） （▲49.3%）（▲14.2%）■ Click 365
FY2009(in thousands)

FY2010FY2011FY201280,368
123,432
121,116
58,200（＋66.3%）（＋53.6%） （▲1.9%） （▲51.9%）■ Click Kabu 365
FY2009ーー

FY2010(in thousands)

FY2011FY2012

447
1,042
2,524
（ー%） （＋132.8%）（＋142.2%）■ Total Trading Volume of Listed Products (in thousands)
FY2009FY2010FY2011FY2012

92,549135,346
128,019
65,718（＋36.9%）（＋46.2%） （▲5.4%） （▲48.7%）

Market Summary・T he trading volume of Three-month
Euroyen futures fell 14.2% from the previous fiscal year, to 4,9 8 9 thousand
lots, declining for the sixth consecutiveterm.
・T he trading volume of Click 365 fell significantly, by 51.9% year on year, to58,200 thousand lots, mainly reflecting
the application of a separate self-assessment tax to over-the-counter transactions since January 2012.
・T he trading volume of Click Kabu 365
increased 142.2% year on year, to2,524 thousand lots, its highest annual
trading volume since its listing inNovember 2010.
・A s a result, the total trading volume oflisted products declined 48.7% year on
year, to 65,718 thousand lots.

Tokyo Financial Exchange Inc.

4

Topics in Fiscal Year 2012
Efforts to Increase the Trading Volume of Click 365
1 Reducing Tick Sizes of Major Currency Pairs to Three Decimal Places

Minimum tick sizes of USD/JPY, EUR/JPY, and
AUD/JPY changed to 0.005 yen!!

In October 2012, TFX changed minimum tick sizes for major
currency pairs (USD/JPY, EUR/JPY, AUD/JPY) of Click 365 from
0.0 1 (yen) to 0.0 0 5 (yen) (showing exchange rates to threedecimal places).

【Past】

Before introduction
1.118

BID

78.350EUR/JPY

March 2013

0.658

OFFER

0.01 yen【From October 1, 2012】

Comparison of average spreads before and after the introduction of reduced tick sizes are as follows.

Average spread

BID

78.35

This has enabled us to narrow the spreads of major currency pairs compared with the past.

USD/JPY

Spread Examples (USD/JPY)

Before introduction
1.384

March 2013

1.148

78.36
OFFER

0.005 yen

78.355

AUD/JPY

Before introduction
1.313

March 2013

1.150

Period covered (based on trading days) : Before introduction… …… September 3–28
March 2013………………… March 1–29
* The average spreads above are the averages for all the effective data extracted from the spreads for bid/offer prices foreach currency pair quoted during trading hours on trading days. The data above show the statistical data over a certain

period in the past, and are not meant to show future forecasts or prospects or to guarantee them. Although TFX pays
appropriate attention to the collection and processing of data, TFX provides no guarantee whatsoever (including its completeness or accuracy) as to the above data.

2 Expansion of Intermediate Brokers and Agents
To offer investors more investment opportunities, TFX has made trading more convenient by allowing investors

to conduct transactions through intermediate brokers and intermediate agents, in addition to trading members
who have a TFX trading membership.

One intermediate broker commenced business in December 2012, and another intermediate broker started

business in May 2013.

5

Tokyo Financial Exchange Inc.

Efforts to Improve the Revenue Structure and Convenience in Interest Rate Futures Contracts
1 Revenue Structure Improvements (Fee Structure Revision)
The Interest Rate Futures Contracts business suffered a loss for three consecutive years since the collapse of Lehman Brothers in 2008, as the trading volume of Interest Rate Futures Contracts continued to be sluggish against the
backdrop of the monetary easing by the Bank of Japan.
Under these circumstances, TFX strengthened its revenue structure, which had depended heavily on per-contract exchange fees based on trading volumes in the past, revising its fee structure in April 2013 to stabilize its business profile.
In its new fee structure, TFX has revised its monthly exchange fee and established a system-related fee and a market information–related fee, as in other exchanges, based on the concept of the benefit principle.
TFX also plans to institute a TFX connection charge and a trading software usage fee after February 2014, when a
new trading system will go into operation.

160 million yen

Increase in annual revenues in the Interest Rate Futures Contracts business due to the revision of fees

Approx.

(Forecast for fiscal 2013)＜Introduction of the Inactive Member System＞
Along with the revision of its fees, TFX recently established an Inactive Member System. Under this system, the rights andobligations of trading members or clearing members will be temporarily suspended for those trading members who have little need for trading in the current interest-rate environment in order to exempt them from the cost burden associated withthe revision of fees and allow them to participate in trading when market conditions turn up in the future.

2 Increased Convenience (Lowering the Minimum Volume for Block Trades)
In July 2012, TFX lowered the minimum volume for block trades for Interest Rate Futures Contracts from 250

lots to 100 lots (from 500 lots to 100 lots for options on Three-month Euroyen futures) to better respond to investor needs.

＜Minimum volume for block trades for Interest Rate Futures Contracts＞
Products

BeforeNow

Three-month Euroyen futures

250 lots

100 lots

Options on Three-month Euroyen futures

500 lots

100 lotsOver-Night Call Rate futures

250 lots

100 lots

Six-month Euroyen LIBOR futures

250 lots

100 lots

Tokyo Financial Exchange Inc.

6

Developing New Trading System, for Significant Cost Savings
TFX has embarked on the development of a new Margin Contracts trading system and a new Interest Rate Fu-tures Contracts trading system, to commence operation in October 2013 and February 2014, respectively.

1 Cost Reduction
Through these new trading systems, TFX will significantly reduce its operational costs over five years, including its initial investments.

Total cost ofboth systems

Approx.

20 billion yen

10 billion yen

Halved to approx.

Associated with this, break-even trading volume will also decline substantially in fiscal 2014.

2 Counterplans for System Failures① Instant switchover to a standby system
If the system fails, TFX will avoid the suspension of trading by instantly
switching over to a standby system.

② Installment of a disaster recovery site
For the Margin Contracts trading system, we will further improve security

by installing a new disaster recovery site, so business can continue even if
the data center experiences a widespread major disaster, etc.

3 Adoption of a Network Widely Used by Trading Members
TFX also expects to enhance convenience for trading members by selecting“arrownet”, which is widely usedamong TFX trading members, as a network to access all TFX listed products.

Reducing Operating Costs
TFX strongly promoted reducing costs such as personnel expenses and marketing expenses (operating expenses declined 19.2% from the previous fiscal year), taking into account a loss for three consecutive years in
the Interest Rate Futures Contracts business due to the sluggish trading volumes of Three-month Euroyen futures
and a decline in the trading volumes of Click 365.
In particular, TFX cut personnel expenses significantly by suspending payments of summer bonuses to employees and freezing the hiring of new employees.
In addition, the human resources policy was changed to a pay-for-job system (in April 2013), so the wage system could become more clear and flexible according to employees’ job duties and performances.
No directors’ bonuses were paid in fiscal 2012.
7

Tokyo Financial Exchange Inc.

Active Promotion and Publicity
1 Click 365
TFX endeavored to further increase recognition of Click 365 and promote a better understanding of its productknowledge by holding various investor seminars and events throughout the year. TFX also actively waged campaigns,
etc. to increase trading volumes.
In addition, to improve the information available to investors in Japan and overseas, TFX began regularly delivering
market reports, and established an English homepage for Click 365 and an official Twitter account for TFX.

【Promotional activities for Click 365】
〔Seminars/ events〕〔Publicities〕◦ Regular seminar in TFX (every other Wednesday)◦ Sponsoring Click365 Market Information, a pro-◦ Seminars commemorating the implementation of◦ Regular delivery of market reports◦ U.S. Employment Statistics Carnival! in TFX

gram in Tokyo Market Wide on Tokyo MX TV

reduced tick size in Click 365 (10 cities nationwide)◦ Establishing an English homepage for Click 365◦ Setting up an official Twitter account◦ Click Fair 2013 (Tokyo)◦ Investment Strategy Fair at EXPO2013 (Tokyo)〔Campaigns, etc.〕◦ Incentive measures commemorating the implementation of reduced tick size in Click 365◦ Gold Coin Present Campaign

Seminar commemorating the English homepage for Click 365
implementation of reduced
http://www.click365.jp/entick size in Click 365

Official Twitter account for TFX@tfx_pr2 Click Kabu 365
For Click Kabu 365, trading volumes have been increasing steadily since its listing in November 2010. However,to expand the market further, TFX carried out promotion activities such as holding various seminars for first-time
investors and waging campaigns, etc. for those who recently opened accounts, as described below.

【Promotional activities for Click Kabu 365】
〔Seminars〕〔Campaigns, etc.〕〔Advertising〕◦ Regular seminar in TFX (every other Wednesday)◦ Cash back campaign◦ Placing ads on ZAi ONLINE“Click Kabu 365◦ Click Kabu 365 Special Investment Seminar in TFX◦ Instructor activities at seminars given by trading members (throughout Japan)◦ Incentives to open new accounts

Special Site”(tie-up advertising)

3 Overseas PR

TFX is endeavoring to further increase market convenience by meetingthe trading needs of market participants through communications with institutional investors and financial institutions in Japan and overseas, by giving presentations, and by participating in Expos (London, Chicago, Tokyo)
and international conferences (Singapore, Tokyo) given by FIA (Futures
Industry Association), etc.

FIA EXPOFIA Japan ConferenceTokyo Financial Exchange Inc.

8

B u si ness Pl a ns a n d Po l i c i e s f o r F i s c a l Y e a r 2 0 1 3

Basic
policies

1.	To ensure overall profits by continuing to promote comprehensive measures to increase trading volumes in the Margin Contracts business to make up for losses in the continuously sluggish Interest Rate Futures Contracts business.
2.	To maintain the reliability of market operations by smoothly upgrading the Interest Rate and Margin Contracts trading systems.

Mainmeasures1．Click 365① Implement measures to improve liquidity through the participationof overseas investors, and develop and launch new products.
② Introduce and expand automated trading.
③ Rebrand Click 365.
④ Enhance and strengthen campaigns for investors and investment information.

2．Click Kabu 365① Increase trading members.
② Rebrand Click Kabu 365.

③ E nhance and strengthen campaigns for investors and investment information.

9

Tokyo Financial Exchange Inc.

3．Interest Rate Futures Contracts

4．Upgrades to New Trading Systems, etc.

Aggressively promote newmeasures to increase trading volumes, taking market
needs into account.

① Smoothly transition to new trading systems, andfully enforce measures to prevent system failures.
② Strengthen the development of human resources
and improve the efficiency of workflows.

F inan c i a l St a tem ents (Summa r y ) a n d M a r k e t Da ta

Account Titles

FY2011(million yen)

FY2012

Account Titles

As of March 31, 2012 As of March 31, 2013

(Assets)

FY2011FY2012As of March 31, 2012 As of March 31, 2013

5,456

52

50

Per-contract exchange fees

8,724

4,970

Income related to system equipment

218

185

Member registration fees, etc.

2

11Income from information services

240

239

Operating Expenses

7,476

6,037

Personnel expenses

1,602

1,267

Marketing expenses

333

100

Facility-related expenses

5,275

4,454

1,269

Cash and bank deposits

882

16,855

Accounts payable-trade

212

193

Accounts receivable-trade

614

557

Securities

90

610

Accounts payable-other

0

1,025

183

49

Non-current Liabilities

216,995

225,309

Deposits received from members

216,577

224,804

418

504

217,392

226,578

301

322
231,304

Tangible Fixed Assets

1,643

2,128

456

440

Buildings
Furniture and equipment

1,187

675

Construction in progress

―

1,012

Intangible Fixed Assets

2,144

3,170

2,118

1,177

Software in progress

17

1,987

Others8

4Investment and Other Assets

18,586

1,201

Investment in securities

17,137

OthersOthersOthersTotal Liabilities(Net Assets)
Shareholders’Equity

23,447

23,071

Common stock

5,844

5,844

Capital surplus

6,045

6,045

Retained earnings

11,557

11,181―

Default compensation reserve

3,594

3,594

1,449

1,201

Retained earnings brought forward

7,963

7,587

Assets Held for Guarantee from Members

216,577

224,804

Total Net Assets

23,447

23,071

Total Assets

240,840

249,650

Total Liabilities and Net Assets

240,840

249,650

Software

FY2012

From April 1, 2012
to March 31, 2013

9,238

396

238,952

FY2011

From April 1, 2011
to March 31, 2012

Fixed amount exchange fees

Current Liabilities

Others

Account Titles
Operating Revenues

18,345

Non-current Assets

Profit and Loss Statement (Summary) (million yen)

(Liabilities)
1,888

Current Assets▲▲

Balance Sheet (Summary)Administrative expenses

264

215

Operating Profit or Loss (▲)

1,761

▲ 581

Non-operating Revenues

327

222

Non-operating Expenses

2

20

Ordinary Profit or Loss (▲)

2,086

▲ 378

Extraordinary Income―

510

Extraordinary Losses

669―

Income Before Income Taxes

1,417

131

Income taxes-current

687

16

Income taxes-deferred

▲ 77

60

Net Income

807

55

* The above statements are based on accounting standards of Japan.

▲

Ma rke t D a t a(In lots; upper row: annual trading volume; lower row: average daily trading volume)

Products

FY2008FY2009FY2010FY2011FY2012Three-month Euroyen
futures

18,584,732(75,856)

12,161,642(49,843)

11,466,264(46,801)

5,816,233(23,643)

4,989,726(20,366)

678,197(2,768)19,000(78)

0(0)

35,547
(145)

1,500
(6)

48,334,039(191,139)

80,368,758(309,111)

123,432,149(472,920)

121,116,072(466,391)

58,200,747(224,754)

ー
(ー)

ー
(ー)

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

67,596,968(269,763)

92,549,400(359,031)

135,346,227(524,849)

128,019,351(494,471)

65,718,851(254,896)

Options on There-month
Euroyen futures
Click 365
Click Kabu 365
All Listed ProductsTokyo Financial Exchange Inc.

10

Co r po r a t e Pro fil e■ Company Name Tokyo Financial Exchange Inc.

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

5,844,650,000 yen(in April 2004, TFX changed from a membership organization to a stock company)■ No. of Employees 113■ Fiscal term March 31■ Management President & CEO
Managing Director
Managing Director
Member of the Board
Member of the Board
Member of the Board
Member of the Board
Member of the Board
Standing Statutory Auditor
Statutory Auditor
Statutory Auditor

Shozo Ohta
Wataru Ito
Takuo Hirota
Takashi Imai
Masahiro Okuno-Fujiwara
Yoshihiko Shimizu
Junko Hirakawa
Shin Yoshidome
Nagao Hashimoto
Osamu Sekine
Toshihiko Fujie

Board of Auditors

Statutory Auditor

President & CEO■ Address

Board of Directors

April 1989

’ MeetingShareholders■ Founded■ Organizational Chart

Self-Regulatory Committee■ No. of TFX Members① Interest Rate Futures Trading Members…… 35(including 33 Interest Rate Futures Clearing Members)② FX Margin Trading Members(FX Margin Clearing Members)… …………… 23■ Share Information (as of March 31, 2013)
Total No. of Shares Authorized
No. of Shares Issued and Outstanding
No. of Shareholders(including 6 FX Market Makers)③ Equity Index Margin Contracts Trading Members(Equity Index Margin Contracts Clearing Members)…… 10(including 2 Equity Index Market Makers)

■ U

R

L

3,400,000
862,75075

http://www.tfx.co.jp/en/* Information without a specific date is as of June 24, 2013.
The Nikkei Stock Average is a copyrighted index calculated by a method independently developed by Nikkei Inc. Nikkei Inc holds the copyright, the intellectual property rights, and all other rights associated with the Nikkei Stock Average
itself and the method of calculating Nikkei Stock Average. Business of Equity Index Margin contracts, the underlying assets of which are the Nikkei Stock Average (“Nikkei 225 Margin contracts”), and the enforcement of trading regulations
for such contracts shall be managed under the responsibilities of Tokyo Financial Exchange Inc. (“TFX”) and its Trading Members, and Nikkei Inc shall not assume any obligations or responsibilities thereof. In operating Nikkei 225 Margin
contracts, TFX is responsible for calculating and publishing the ex-dividend prices of stocks used in the Nikkei Stock Average, which are required for Nikkei 225 Margin contracts. Nikkei Inc has the right to change component stocks in
the Nikkei Stock Average, the method of calculation, and other details of the Nikkei Stock Average, and to discontinue the publication of the Nikkei Stock Average. Nikkei Inc shall not be obligated to continuously publish the Nikkei Stock
Average, and shall not be liable for any errors, delay or discontinuation of publication.
DAX® is a registered trademark of Deutsche Börse AG. This financial instrument is neither sponsored nor promoted, distributed or in any other manner supported by Deutsche Börse AG (the “Licensor”). The Licensor does not give any explicit or implicit warranty or representation, neither regarding the results deriving from the use of the Index and/or the Index Trademark nor regarding the Index value at a certain point in time or on a certain date nor in any other respect.
The Index is calculated and published by the Licensor. Nevertheless, as far as admissible under statutory law the Licensor will not be liable vis-à-vis third parties for errors in the Index. Moreover, there is no obligation for the Licensor visà-vis third parties, including investors, to point out potential in the Index Neither the publication of the Index by the Licensor nor the granting of a license regarding the Index as well as the Index Trademark for the utilization in connection
with the financial instrument or other securities or financial products, which derived from the Index, represents a recommendation by the Licensor for a capital investment or contains in any manner a warranty or opinion by the Licensor
with respect to the attractiveness on an investment in this product. In its capacity as sole owner of all rights to the Index and the Index Trademark the Licensor has solely licensed to the issuer of the financial instrument the utilization of
the Index and the Index Trademark as well as any reference to the Index and the Index Trademark in connection with the financial instrument.
The FTSE100 Margin contract is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or the London Stock Exchange Group companies (“LSEG”) (together the “Licensor Parties”) and none of theLicensor Parties make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to (i) the results to be obtained from the use of the FTSE100 (the “Index”) (upon which the FTSE100 Margin contract isbased), (ii) the figure at which the Index is said to stand at any particular time on any particular day or otherwise, or (iii) the suitability of the Index for the purpose to which it is being put in connection with the FTSE100 Margin contract.
None of the Licensor Parties have provided or will provide any financial or investment advice or recommendation in relation to the Index to Tokyo Financial Exchange Inc. or to its clients. The Index is calculated by FTSE or its agent. Noneof the Licensor Parties shall be (a) liable (whether in negligence or otherwise) to any person for any error in the Index or (b) under any obligation to advise any person of any error therein.
All rights in the Index vest in FTSE.“FTSE®”is a trade mark of LSEG and is used by FTSE under licence.
The FTSE China 25 Margin contract is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or the London Stock Exchange Group companies (“LSEG”) (together the “Licensor Parties”) and noneof the Licensor Parties make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to (i) the results to be obtained from the use of the FTSE China 25 (the “Index”) (upon which the FTSE China 25
Margin contract is based), (ii) the figure at which the Index is said to stand at any particular time on any particular day or otherwise, or (iii) the suitability of the Index for the purpose to which it is being put in connection with the FTSE
China 25 Margin contract. None of the Licensor Parties have provided or will provide any financial or investment advice or recommendation in relation to the Index to Tokyo Financial Exchange Inc. or to its clients. The Index is calculated
by FTSE or its agent. None of the Licensor Parties shall be (a) liable (whether in negligence or otherwise) to any person for any error in the Index or (b) under any obligation to advise any person of any error therein.
All rights in the Index vest in FTSE. “FTSE®” is a trade mark of LSEG and is used by FTSE under licence.

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