Annual Report the 12th Tokyo Financial Exchange Inc.

Business Report 2015 for the Fiscal Year
Ended March 31, 2016

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 2015, the operating environment for Tokyo
Financial Exchange (TFX) was as follows:
Trading volume s o f T hre e - month Euroyen
futures fell to 2.2 million lots, down 4.6% year-onyear. The trading volume temporarily increased
imm e dia t e ly f o l l o w in g t h e in t r o du c t i o n o f
Negative Interest Rate Policy (NIRP) by the Bankof Japan (BOJ) but hovered at lower levels almost
throughout the fiscal year due to the continued
quantitative and qualitative monetary easing by
the BOJ.
The foreign exchange market fluctuated on the
backdrop of rising expectations of interest rate hikes
in the United States, plunging Chinese stock prices,and declines in global oil prices, among other factors.
Given these market developments, trading volumes

Contents

of Click 365, Exchange FX Margin contracts, generally

To Our Shareholders............................... 01

the fiscal year, resulting in 41.6 million lots, up 22.3%

TFX Businesses......................................... 03

year-on-year, for the full year.
Global stock markets moved on the back of,Summary of Operating Results............. 04

among other factors, improved corporate earnings

Topics in Fiscal Year 2015. ..................... 05

due to the yen’s depreciation, plunging Chinese

Fiscal Year 2016 Initiatives. ................... 09
Financial Statements (Summary)and Market Data........................................ 10
Corporate Profile......................Back Cover01

trended higher than the prior year level throughout

Tokyo Financial Exchange Inc.

stock prices, and declines in global oil prices sinceAugust. Amid such a backdrop, trading volumesof Click Kabu 365, Exchange Equity Index Margin
contracts, significantly rose to 8.4 million lots, up
33.6% year-on-year.

As a result, the overall trading volume on TFX in
fiscal year 2015 was 52.3 million lots, up 22.5% year-

taxes) was 440 million yen, and 1,026 million yen,excluding Office Relocation Costs.

on-year. Operating revenues increased 1,688 million
yen, or 22.1%, year-on-year to 9,315 million yen.

In fiscal year 2016, the Interest Rate Futures

Operating expenses increased 1,197 million yen,Contracts Business will focus on increasing tradingor 15.0%, year- on-year to 9,158 million yen, which

volumes of three -month Euroyen futures by

included 514 million yen for the relocation of

uncovering the needs of investors and appropriately

corporate headquarters (Office Relocation Costs),

taking advantage of market changes that may occur

one-time expenses unique to fiscal year 2015.

as a result of the introduction of NIRP by the BOJ.

In fiscal year 2015, TFX returned to profitability

For Click 365, we will make every effort to promote

on an operating basis for the first time in four fiscal

and publicize, among investors, Click 365 Large,

years. Operating income increased 491 million yen

which has been listed since last year, to make themyear-on-year to 157 million yen and 672 million yen,understand its superior advantages and to increase

excluding Office Relocation Costs, with interest rate

the flow of overseas investors and large accounts

futures contracts and margin contracts (Click 365 andsuch as corporate investors, in particular. In addition,

Click Kabu 365) posting a loss of 1,498 million yen

we will introduce integrated management of margin

and a profit of 1,656 million yen, respectively.

accounts for Click Kabu 365 and Click 365 to further

Non-operating revenues were 471 million yen

enhance the convenience of investors.

primarily due to the gain on sales of investment

For Click Kabu 365, following the launch of the Dow

securities and dividend income. Non-operating

Jones Industrial Average (DJIA) margin contracts, we

expenses were 5 million yen.

will step up our efforts to expand our investor base by

Ordinary income was 623 million yen, up 315

improving the visibility of Click Kabu 365 brand in the

million yen year-on-year, and 1,138 million yen

trading community and facilitating understanding of

excluding Office Relocation Costs.

its superior features.

Extraordinary loss was 234 million yen, primarily
due to rents paid during the restoration of the former
corporate headquarters building to its original state

We sincerely ask our shareholders for your ongoingsupport and cooperation.

following the headquarters relocation.
June 2016
As a result of the above, income before taxes was
389 million yen. With the recognition of deferred tax
assets of 120 million yen, net income (profit after

President and CEO

Shozo Ohta

Tokyo Financial Exchange Inc.

02

TFX Businesses
TFX, as a comprehensive exchange

Tok yo Financial Exchange (TFX)

for financial derivatives, has now

contributes to the sound developmentof the financial marke t s and thelisted products that cover all three

economy of Japan by developing

major sectors for financial derivatives:

financial instruments markets as public

interest rates, foreign exchange,and stocks as listed below.

infrastructure related to financial
instruments transactions that provide
a superior degree of fairness, reliability,a n d c o nv e ni e n c e in a c c o r d a n c e
with the Financial Instruments andExchange Act.

Interest
Rate Sector

Foreign
Exchange Sector

StocksSectorClick 365
Click 365 Large

Click Kabu 365

Interest rate futures are leading products inglobal derivative markets. Three-month
Euroyen futures contracts play an essential
role in short-term monetary markets.

Click 365 is a safe, transparent andreliable listed margin FX, an innovative
exchange listed product that realizes
commission free trading for end users.

Click Kabu 365 is highly convenient
exchange equity index margin contracts
where investors can trade major equity
indices at home and abroad.

Listed products

Listed products

Three-month Euroyen futures
Options on Three-month
Euroyen futures● Over-Night Call Rate futures

29 trading currency pairs in total
17 yen currency pairs● 12 cross currency pairs

Interest Rate
Futures
contracts●●

Interest Rate Futures
Contracts Business

03

Tokyo Financial Exchange Inc.

●

Listed products

Nikkei 225 Margin contracts
DJIA Margin contracts● DAX® Margin contracts● FTSE 100 Margin contracts●●

Margin Contracts BusinessSummary of Operating Results［Financial Accounts ‒ Highlights（For the past five years）］（million yen）

FY2011FY2012FY2013

FY2014FY2015

Change fromFY 2014

Operating Revenues

9,238

5,456

6,602

7,627

9,315

22.1%

Operating Profit orLoss(▲)

1,761

▲581

▲1,247▲333

Ordinary Profit orLoss(▲)

2,086

▲378

▲1,114

308

807

55

▲1,855469

Total Assets

240,840

249,650

284,647

Net Assets

23,447

23,071

20,958Net Income or Loss(▲)

157

—

（672）

（—）

623

102.4%

440▲6.1%

395,379

559,646

41.5%

21,34021,268▲0.3%（1,138） （269.3%）（1,026） （118.7%）

・The values in parentheses under operating income, ordinary income, and net income exclude Office Relocation Costs.
・Dividend per share increased 50 yen year-on-year to 250 yen as TFX turned profitable on an operating basis for fiscal year 2015.

［Market Highlights（For the past five years）］
Annual Trading Volume (Change from previous fiscal years)
Three-month Euroyen futures （in thousands）
FY2011FY2012FY2013

FY2014FY2015

5,816

4,989

4,620

2,394

2,283

Click Kabu 365 （in thousands）
FY2011FY2012FY2013

FY2014FY2015

1,042

2,524

5,268

6,324

8,454

（▲49.2%） （▲14.2%） （▲7.4%） （▲48.1%） （▲4.6%）（+132.8%） （+142.2%） （+108.6%） （+20.0%） （+33.6%）

Click 365 （in thousands）

Total Trading Volume of Listed Products （in thousands）

FY2011FY2012FY2013

FY2014FY2015

121,116

58,20044,55634,015

41,628（▲1.8%） （▲51.9%） （▲23.4%） （▲23.6%） （+22.3%）

FY2011FY2012FY2013

FY2014FY2015

128,019

65,71854,44542,73452,366（▲5.4%） （▲48.6%） （▲17.1%） （▲21.5%） （+22.5%）

・The rate of change year-on-year shown is rounded down to the first decimal place.

Tokyo Financial Exchange Inc.

04

Topics in Fiscal Year 2015
T
O
P
I
C
S

1

Improvement of Operating Revenue❶ Returning to operating profitability
for the first time in four fiscal years
TFX returned to profitability on an operating basis for fiscal
year 2015 with operating income at 157 million yen (and 672
million yen excluding Office Relocation Costs). Net income
was 440 million yen (and 1,026 million yen excluding Office
Relocation Costs), with dividend per share up 50 yen to 250 yen.

❷ Significant reduction in rents due to therelocation of corporate headquarters
TFX relocated its corporate headquarters to Tekko Buildingin Chiyoda-ku, Tokyo, in February 2016. TFX has been able toachieve a significant reduction in rents and also optimize its
office space due to this relocation.

T
O
P
I
C
S

2

Changing Conditions of Interest Rate Futures Market
Prices of three-month Euroyen futures had remained almost
unchanged for more than seven years with ultra low interest
rate under the BOJ’s quantitative and qualitative monetary

100.100

easing policy, but it temporarily surged with the BOJ’s

100.050

introduction of NIRP in January 2016. Given the possibility of

100.000

such interest rate movements occurring again, TFX has beenproactively conducting seminars, etc. both at home and abroadin preparation for a resurgence of trading activities in the shortterm interest rate markets.

05

Price for Three-Month Euroyen Futures（leading contract month）

Tokyo Financial Exchange Inc.

99.95099.90099.85099.800

01

4/

/0

15

20

19

5/

/0

15

20

30

6/

/0

15

20

12

8/

/0

15

20

28

9/

/0

15

20

11

1/

/1

15

20

25

2/

/1

15

20

10

2/

/0

16

20

25

3/

/0

16

20

Further Expansion of Exchange Margin Contracts Market❶ Number of accounts and amount of deposited margin at all-time high
TFX’s margin contracts market has been growing steadily, with both the number of accounts and the amountof deposited margin reaching an all-time high for the second consecutive year.

T
O
P
I
C
S

3

証拠金預託額・口座数［Deposited
Marginand Number of Accounts］■Deposited margin (right axis)

Number of accounts (left axis)■

750,000(100 million yen)
5,500

Click 365

700,000

5,000
4,500
4,000

650,000

3,500
3,000

600,000

2,500

550,000

2,000

500,000

1,000

1,500

4

/0

14

20

6

/0

14

20

8

/0

14

20

0

/1

14

20

2

/1

14

20

2

/0

15

20

4

/0

15

20

6

/0

15

20

8

/0

15

20

0

/1

15

20

2

/1

15

20

2

/0

16

20

■Deposited margin (right axis)

Number of accounts (left axis)■

55,000(100 million yen)
450

Click Kabu 365

50,000400

45,000350

40,000300

35,000250

30,000

4

/0

14

20

6

/0

14

20

8

/0

14

20

0

/1

14

20

2

/1

14

20

2

/0

15

20

4

/0

15

20

6

/0

15

20

8

/0

15

20

0

/1

15

20

2

/1

15

20

2

/0

16

20

200

❷ Increase in the number of trading members(new market participants)
Gaitame Online Co., Ltd., and Fujitomi Co., Ltd., have joined as new trading
members in the Click 365 market, with Money Square Japan, Inc. andFujitomi Co., Ltd., as new trading members in the Click Kabu 365 market.

❸ Steady increase in Click Kabu 365 trading volume
The trading volume of Click Kabu 365 increased 33.6% year-on-［Trading volume of Click Kabu 365］
9,000,000
8,000,000

year in fiscal year 2015, reflecting market fluctuations on the back of

7,000,000

plunging Chinese stock prices and declines in global oil prices. Click

6,000,000

Kabu 365 is well-received for its highly convenient features, which
include that it can be traded at night and during public holidays, that

5,000,000
4,000,000
3,000,000

there is no expiration date (Click kabu 365 is a rolling spot contract),

2,000,000

and that dividend equivalents will be paid on long positions, and all

1,000,000

these features are combined to make it suitable for long term holding.

0

2010

2011

2012

2013

2014

2015

Tokyo Financial Exchange Inc.

06

T
O
P
I
C
S

4

Click 365 : Listing of New Product❶ Listing of Turkish Lira / JapaneseYen (TRY/JPY) currency pair
In addition to Click 365’s 23 listed currency
pairs, TFX has launched the TRY/JPY in May 2015.

［Trading Value of TRY/JPY Currency Pair（from May 2015 to March 2016）］
TRY/JPY Currency Pair – TFX (million yen)

1,731,543

TRY/JPY – Over-the-Counter (OTC) FX (million yen)

2,781,705

Share of TFX’s TRY/JPY currency pair in total market

38%

The TRY/JPY currency pair is one of the high＊The trading value of OCT FX’s TRY/JPY currency pair was derived from the “Over-theCounter FX Monthly Report” issued by the Financial Futures Association of Japan.

yielding currency pairs that are very popular＊The trading value of Click 365 is an estimate based on a sum of products obtained bymultiplying a monthly trading volume by month-end settlement prices.

among investors, just as the South African Rand /Japanese Yen (ZAR/JPY).
With its swap point and spread among thehighest in the industry, the TRY/JPY greatly
contributed to the increased trading volume ofClick 365.

❷ Listing of Click 365 Large,
product targeting large volume
investors
TFX listed Click 365 Large (US dollar / Japanese
JPY), British pound / Japanese Yen (GBP/JPY),
Australian dollar / Japanese Yen (AUD/JPY)
and Euro / US dollar (EUR/USD) in November
2015 to meet the trading needs of large volume
investors at home and abroad, as well as investors
who are focused on tight spreads.
It is expected that the Click 365 Large businessCurrency Pair

Click 365

Click 365 Large

10,000 currency units

100,000 currency units

24 currency pairs

5 currency pairs

USD/JPY
EUR/JPY
AUD/JPY

0.005 yen

GBP/JPY

0.01 yen

0.001 yen

EUR/USD

Transaction Fee

1pips
Not Charged＊1

Charged＊2

Leverage

25x maximum (150x maximum for corporates)

Swap Point

One value＊3

will expand going forward, with its high potential＊1 Not all the trading members eliminate charging transaction fees.
＊2 Transaction fees may change, depending on trading members.

for achieving high execution rates, just as in the＊3 As Click 365 and Click 365 Large are two different products, their respective
swap points are different.

case of Click 365.

07

Trading Unit (one lot)
Minimum Tick Size

Yen (USD/JPY), Euro / Japanese Yen (EUR/［Difference between existing Click 365 and Click 365 Large］

Tokyo Financial Exchange Inc.

T
O
P
I
C
S

Other Activities❶ Seminar-in-TFX

5

TFX holds regular seminars (“Seminar-in-TFX”) on Click 365 and Click
Kabu 365 at its TFX Plaza, primarily targeting first-time investors. Also, TFX
trading members host their seminars regularly at TFX plaza. For further
details on these seminars, please visit the official website of Click 365.

Day of Week

Time

『Easy-to-Understand Click 365 Seminar (FX)』

Title of Seminar

Every second Wednesday

6:30–7:30 pm『Easy-to-Understand Click Kabu 365 Seminar (Stock Indices)』

Every third Wednesday

6:30–7:30 pm『Easy-to-Understand Click Kabu 365 Seminar (Stock Indices)』

Every fourth Friday

2:00–3:00 pm❷ Courses on Finance and Economics to Help Enhance
Financial Literacy
Since July 2015, TFX has been holding courses on finance and economics at
public facilities, such as public halls and community centers, to help people
enhance their financial literacy.
［Past and Upcoming Courses］
Contents of Courses

Venues (courses held and to be held in Saitama and Chiba prefectures)●The Nikkei 225 Stock Average index 101;
Looking at Japan’s economy through thelens of Nikkei 225 Stock Average index;
Invest in Nikkei 225 Stock Average index,
etc.
●Foreign Exchange Trading 101; Looking
at the global economy through the lensof foreign exchange; Foreign exchange
trading, etc.

Tsuchiai Community Center, Uetake Community Center, Horie Community
Center, Misono Community Center, Konakadai Community Center, Harigaya
Community Center, Kikuta Community Center, Okubo Community Center,
Ryoke Community Center, Miyahara Community Center, Mihama Community
Center, Suzuya Community Hall, Kotehashi-dai Community Center, Kita-Urawa
Community Center, Kawaguchi Citizens College (Nishi Community Center),Misasa Community Center, Yono-Honmachi Community Center, Kamikizaki
Public Hall, Iroha Yugakukan, Shimo-Ochiai Community Center, HigashiOmiya Community Center, Sakawa Community Center, etc.

Tokyo Financial Exchange Inc.

08

Fiscal Year 2016 Initiatives

ACTION
Upgrading and expanding

BREAKTHROUGH

Studying measures to further improve
price competitiveness and new businessdevelopment for Click 365 Large.

incentive measures and trading
methods for interest rate
futures contracts

1. To further enhance the appeal of Click 365 Large to

1. Impl em e nt t h e foll o wing ince ntive

large volume investors both at home and abroad,measures to fur ther promote theparticipation of new investors, primarily
from Asia.
( i )Provide a financial incentive for trades
executed on back month contracts
and strategy trades made via block
trading facility.
( ii )Offer volume discount depending ontighten spreads by upgrading and expanding
incentive measures for market makers and trading
members of Click 365 Large.
2. Study the viability of making an entry into theclearing business of OTC FX trading to further
enhance the reliability of the foreign exchange
market as a whole amid further tightening of financial
regulations globally.

the size of trading volume.
(iii)Provide a financial incentive to newentry investors.

CHALLENGE

as packs and bundles, to bolster trading in

Listing of new products and implementing
the integrated management of marginaccounts for Click Kabu 365

back month contracts and to improve user

1. With the listing of the DJIA margin contracts in June

2. Considering measures to upgrade andexpand a strategy trading functions, such

convenience.

2016, further enhance the awareness of Click Kabu
365 and thus acquire new trading members.
2. Improve the convenience o f inve s tor s byimplementing the integrated management of marginaccounts for Click Kabu 365 and Click 365.

09

Tokyo Financial Exchange Inc.

Financial Statements (Summary) and Market Data
［Balance Sheet（Summary）］［Income Statement（Summary）］(In million yen, rounded off to millions)(In million yen, rounded off to millions)

FY 2014 FY 2015

Account Titles

As of March
31, 2015

FY 2014 FY 2015

Account Titles

As of March
31, 2016

As of March
31, 2015

1,191

1,200

Accounts payable - trade

553

632

－

Accounts payable - other

513

395

686

776

Income taxes payable－

7

Accounts receivable - other

921

227

Consumption and othertaxes payable

46

24

Income taxes receivable

7

－

77

140

Prepaid expenses

78

34

Deferred tax assets

116

170

4

1

14,774

15,860Current Liabilities

Cash and bank deposits

7,518

14,650

Securities

5,440

Accounts receivable - trade

Current Assets

Others380,604 543,786

Non-current Assets
Tangible fixed assets

1,421

1,232

399

464

Furniture and equipment

1,022

767

Intangible fixed assets

2,910

2,217

Software

2,897

2,205

13

11

4,024

3,800

Buildings

OthersInvestment and other assets
Assets held forguarantee from members

Total Assets

OthersNon-current Liabilities

372,847 537,177

Deposits received
from members

372,247 536,536

Total Liabilities

Operating Expenses
Personnel expenses
Marketing expenses
Facility-related expenses
Operating Income or Loss (▲)

Administrative expenses

Common stock

5,844

5,844

Capital surplus

6,045

6,045

Retained earnings

9,406

9,674

Default compensation
reserve
Retained earnings
brought forward
Valuation and Translation
Adjustments

3,594

4,600

5,812

5,074

42

▲297

21,34021,268

Income taxes - deferred

395,379 559,646

Net Income or Loss (▲)

395,379 559,646

Total Liabilities andNet Assets［Market Data］

All Listed Products

Income from asset
management/investment

21,565

Total Net Assets

Click Kabu 365

9,315
139
8,187
217
35
17
271
447
9,158
1,252
4,316
3,380
208
157
471
5
623
－
234
389
69
▲120
440

Member registration
fees, etc.
Income frominformation services

21,297

Options on Three-month Euroyen Futures

7,627
142
6,700
208
35
7
262
271
7,960
1,222
3,553
2,965
219
▲333
644
3
308
－
－
308
19
▲180
469

Other exchange fees

Shareholders’ Equity

Three-month Euroyen Futures

From April 1, 2015
to March 31, 2016

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

374,039 538,378(Net Assets)

372,247 536,536

Click 365

641

599

Others

Products

From April 1, 2014
to March 31, 2015

Operating Revenues(Liabilities)(Assets)

FY 2014 FY 2015

Account Titles

As of March
31, 2016

Non-operating Revenues
Non-operating Expenses
Ordinary Income or Loss (▲)
Extraordinary Income
Extraordinary Losses
Income or Loss (▲)
before Income Taxes

Income taxes - current（In lots, upper row: annual trading volume, lower row: average daily trading volume）

FY 20115,816,233

FY 2012
4,989,726

FY 20134,620,441

FY 20142,394,821

35,547

1,500
(6)

0

(0)

100
(0)

(0)

121,116,072

58,200,747

44,556,077

34,015,116

41,628,818

1,042,524

2,524,870

5,268,870

6,324,175

8,454,268

128,019,351

65,718,851

54,445,388

42,734,212

52,366,424(23,643)(145)(466,391)(4,088)(494,471)(20,366)(224,754)(9,762)(254,896)(18,859)(171,731)(20,285)(210,875)(9,735)(130,828)(24,380)(164,943)

FY 2015
2,283,338(9,320)0(161,777)(32,446)(203,543)

Tokyo Financial Exchange Inc.

10

Corporate Profile
Company NameFounded（including 30 Interest Rate Futures Clearing Members and
12 inactive trading members (inactive clearing members)）(ii) FX Margin Trading Members(FX Margin Clearing Members)・
・
・
・
・
・
・
・
・
・
・
・
・
・
・
・22
（including 6 FX Market Makers）

General Administration Department

Statutory Auditor

Public Relations Ofﬁce

President & CEO

No. ofTFX Members

Tekko Building 8th Floor, 1-8-2 Marunouchi,
Chiyoda-ku, Tokyo, 100-0005
5,844,650,000 yen
89（as of March 31, 2016）
March 31
President & CEO
Shozo Ohta
Senior Managing Director Wataru Ito
Managing Director
Takuo Hirota
Managing Director
Ryuji Obara
Member of the Board
Takashi Imai
Member of the Board
Masahiro Okuno-Fujiwara
Member of the Board
Junko Hirakawa
Member of the Board
Hidekazu Fukumoto
Member of the Board
Shin Yoshidome
Standing Statutory Auditor Nagao Hashimoto
Statutory Auditor
Toshiyuki Tsukasaki
Statutory Auditor
Shigeyuki Maeda( i ) Interest Rate Futures Trading Members・
・
・
・
・
・
・
・43

Board of Auditors
Board of Directors

CapitalNo. of Employees
Fiscal termManagement（in April 2004, TFX changed from a membership organization to a stock company）

Organizational Chart

Shareholders’ Meeting

Address

Tokyo Financial Exchange Inc.
April 1989

Compliance and Risk Management Ofﬁce
Finance and Accounting Department
Fixed Income Products Development andMarketing Department
Margin Contracts Market
Development Department

Self-Regulatory Committee

Margin Contracts Marketing Department
Clearing and Settlement Department

Expert Committee

・Discipline Committee

Market Surveillance Department
System Department

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

Internal Auditing Ofﬁce
Self-Regulation Bureau

Share Information(as of March 31, 2016)

URL

Total No. of Shares Authorized…3,400,000
No. of Shares Issued and Outstanding…862,750
No. of Shareholders…75
http://www.tfx.co.jp(iii) Equity Index Margin Trading Members(Equity Index Margin Clearing Members)・
・
・
・
・
・13
（including 3 Equity Index Market Makers）※Information without a speciﬁc date is as of June 23, 2016
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 vis-à-vis third parties, including investors,
to point out potential in the Index Neither the publication of the Index by the Licensor nor the granting of a license regarding the Index as well as the Index Trademark for the utilization in connection with the ﬁnancial instrument or other securities or ﬁnancial products, which derived from the Index, represents a recommendation by the Licensor for a capital investment
or contains in any manner a warranty or opinion by the Licensor with respect to the attractiveness on an investment in this product.In its capacity as sole owner of all rights to 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 the Licensor Parties make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to (i) the results
to be obtained from the use of the FTSE100 (the “Index”) (upon which the FTSE100 Margin contract is based), (ii) the ﬁgure at which the Index is said to stand at any particular time on any particular day or otherwise, or (iii) the suitability of the Index for the purpose to which it 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. 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
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The "The Dow Jones Industrial Average" is a product of S&P Dow Jones Indices LLC or its afﬁliates ("SPDJI") and Dow Jones Trademark Holdings, LLC, and has been licensed for use by Tokyo Financial Exchange Inc. ("TFX"). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC ("S&P") and Dow Jones® is a registered trademarkof Dow Jones Trademark Holdings LLC ("Dow Jones"). Third Party Licensor’s Trademark is a trademark of Dow Jones Trademark Holdings, LLC. The trademarks have been licensed to SPDJI and have been sublicensed for use for certain purposes by TFX. DJIA Margin transaction/contract is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of theirrespective afﬁliates (collectively, "S&P Dow Jones Indices") or Dow Jones Trademark Holdings, LLC. Neither S&P Dow Jones Indices nor Dow Jones Trademark Holdings, LLC make any representation or warranty, express or implied, to the owners of the DJIA Margin transaction/contract or any member of the public regarding the advisability of investing in securities generally
or in DJIA Margin transaction/contract particularly or the ability of the Dow Jones Industrial Average to track general market performance. S&P Dow Jones Indices and Dow Jones Trademark Holdings, LLC only relationship to TFX with respect to the Dow Jones Industrial Average is the licensing of the Index and certain trademarks, service marks and/or trade names of S&P
Dow Jones Indices and/or its licensors. The Dow Jones Industrial Average is determined, composed and calculated by S&P Dow Jones Indices or Dow Jones Trademark Holdings, LLC without regard to TFX or the DJIA Margin transaction/contract. S&P Dow Jones Indices and Dow Jones Trademark Holdings, LLC have no obligation to take the needs of TFX or the ownersof DJIA Margin transaction/contract into consideration in determining, composing or calculating the Dow Jones Industrial Average. Neither S&P Dow Jones Indices nor Dow Jones Trademark Holdings, LLC are responsible for and have not participated in the determination of the prices, and amount of DJIA Margin transaction/contract or the timing of the issuance or saleof DJIA Margin transaction/contract or in the determination or calculation of the equation by which DJIA Margin transaction/contract is to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices and Dow Jones Trademark Holdings, LLC have no obligation or liability in connection with the administration, marketing or trading of DJIA
Margin transaction/contract. There is no assurance that investment products based on the Dow Jones Industrial Average will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment advisor. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold suchsecurity, nor is it considered to be investment advice.
NEITHER S&P DOW JONES INDICES NOR DOW JONES TRADEMARK HOLDINGS, LLC GUARANTEES THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE DOW JONES INDUSTRIAL AVERAGE OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTENCOMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES AND DOW JONES TRADEMARK HOLDINGS, LLC SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES AND DOW JONES TRADEMARKHOLDINGS, LLC MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY TFX, OWNERS OF THE DJIA MARGIN TRANSACTION/CONTRACT, OR ANY OTHER PERSON OR ENTITY FROM THE USE
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