Article 1(1)The term "margin transaction" as used in this Cabinet Office Order means purchase and sale or other transactions of securities performed by a financial instruments business operator (meaning a financial instruments business operator prescribed in Article 2, paragraph (9) of the Financial Instruments and Exchange Act (Act No. 25 of 1948; hereinafter referred to as the "Act"); the same applies hereinafter) by granting credit to a customer (including financial instruments business operator when the financial instruments business operator is a customer; the same applies hereinafter).

(2)The term "when-issued transaction" as used in this Cabinet Office Order means purchase and sale or other transactions of unissued securities performed by a financial instruments business operator for a customer which involve the transfer of the securities or the certificates by the day after a certain number of days have elapsed from the issue date of the securities (if a certificate which can be obtained in exchange of the securities has been prepared, the first day on which the certificate is prepared; the same applies hereinafter).

(3)The term "unsettled account" as used in this Cabinet Office Order means debt related to credit granted by a financial instruments business operator to a customer for a margin transaction.

(4)The term "cross trade" as used in this Cabinet Office Order means a trade performed before the completion of transfer of securities purchased in a when-issued transaction in which the same issue of securities as the aforementioned securities are sold in equal volume, or a trade performed before the completion of transfer of securities sold in a when-issued transaction in which the same issue of securities as the aforementioned securities are purchased in equal volume.

Article 2(1)The transactions prescribed in Article 161-2, paragraph (1) of the Act and the rate to be multiplied by the market value of securities related to the transactions pursuant to the provisions of that paragraph are the transactions and the rates listed in the following items:

(2)The provisions for the rate to be multiplied by the market value of securities related to a margin transaction set forth in item (i) of the preceding paragraph do not apply to the margin transaction when the margin transaction is due to the exercise of the option for a transaction set forth in Article 2, paragraph (21), item (iii) of the Act related to share certificates and is settled by a reversing trade of the same issue of the share certificates in equal volume (limited to cases in which the transfer date is the same as the day of the margin transaction).

(3)The provisions for the rate to be multiplied by the market value of securities pertaining to a when-issued transaction set forth in paragraph (1), item (ii) do not apply to the when-issued transaction in cases the when-issued transaction is due to a cross trade or brokerage for clearing of securities, etc.

Article 3The amount of money to be deposited by a customer and received by a financial instruments business operator for the transactions set forth in the items of paragraph (1) of the preceding Article pursuant to the provisions of Article 161-2, paragraph (1) of the Act (hereinafter referred to as "security deposit") is to be not less than the amount calculated by multiplying the agreed price of the securities related to the transactions by the rate set forth in those items (hereinafter referred to as "normal minimum amount"); provided, however, that in cases that fall under any of the following items, the security deposit for margin transactions is to be an amount of not less than the amount set forth in each of those items:

Article 4When a financial instruments business operator has performed a margin transaction or when-issued transaction for its customer, the financial instruments business operator must receive a security deposit for the transaction from the customer within three days after the day of the performance (when there are any non-business days, the number of days calculated by adding the number of the non-business days).

Article 5The amount of money to be received by a financial instruments business operator as a security deposit from a customer pursuant to the provisions of the preceding Article is to be calculated by deducting the amount of credit granted when the credit is granted for a margin transaction other than credit granted to the customer in the amount equal to the agreed price of the securities related to the margin transaction, and by deducting the amount of credit granted when the credit is granted to the customer for a when-issued transaction.

Article 6(1)The substitute price when all or part of the security deposit required to be received by a financial instruments business operator is substituted by securities pursuant to the provisions of Article 161-2, paragraph (2) of the Act (referred to as "substitute price" in Article 8, paragraph (2)) is to be not more than the market value (meaning the market value specified in the following items in the market set forth in the respective items; the same applies in Article 8, paragraphs (2) and (3)) on the day before the date of receipt of the security deposit multiplied by 80 percent for share certificates, and the rate specified by obtaining the authorization by the Commissioner of the Financial Services Agency for other securities (the rate specified in the following items in the market set forth in the respective items):

(2)When all or part of the security deposit to be received is substituted by corporate bonds, etc. as defined in Article 2, paragraph (1) of the Act on Book-Entry Transfer of Corporate Bonds and Shares (Act No. 75 of 2001) pursuant to the provisions of Article 161-2, paragraph (2) of the Act that is handled by a book-entry transfer institution as defined in Article 2, paragraph (2) of that Act (hereinafter referred to as "book-entry transfer corporate bonds, etc." in this paragraph), and if a financial instruments business operator has a statement or record of the book-entry transfer corporate bonds, etc. made in the holdings column for the financial instruments business operator's account (meaning holdings column prescribed in that Act), the financial instruments business operator must distinguish the column from the column for their own transactions.

Article 7(1)A financial instruments business operator may have money or securities received as a security deposit from a customer for margin transaction withdrawn to the extent corresponding to the amount calculated by deducting the amount set forth in item (ii) from the amount set forth in item (i):

(2)Beyond what is prescribed in the provisions of the preceding paragraph, a financial instruments business operator may have money or securities received as a security deposit from a customer for margin transaction withdrawn only in the following cases:

(3)When a financial instruments business operator has performed a new margin transaction for their customer, the financial instruments business operator may have money or securities received as a security deposit from the customer for margin transaction appropriated for the amount of money to be received as a security deposit for the new margin transaction pursuant to the provisions of Article 4 to the extent corresponding to the amount calculated by deducting the sum of the amounts set forth in items (ii) and (iii) from the amount set forth in item (i):

(4)The agreed price referred to in paragraph (1), item (ii), paragraph (2), item (i), sub-item (b) and item (ii), sub-item (b), item (ii) of the preceding paragraph and paragraph (3) of the following Article is the price calculated by deducting the price of the rights when all securities related to margin transaction include ex-right securities and the unsettled account is settled by deducting the price of the rights from the sale price or purchase price of the securities (the agreed price referred to in paragraph (1), item (ii), paragraph (2), item (i), sub-item (b) and item (ii), sub-item (b) and item (ii) of the preceding paragraph (excluding cases in which the customer subscribes to the securities due to the expiry of rights and has not received delivery of money corresponding to the price of the rights) and the agreed price referred to in paragraph (3) of the following Article includes cases in which the customer agrees to perform the settlement with a financial instruments business operator).

(5)A financial instruments business operator may have money or securities received as a security deposit from a customer for when-issued transaction withdrawn to the extent corresponding to the amount calculated by deducting the amount set forth in item (ii) from the amount set forth in item (i):

(6)Beyond what is prescribed in the provisions of the preceding paragraph, a financial instruments business operator may have money or securities received as a security deposit from a customer for when-issued transaction withdrawn only in the following cases:

(7)When a financial instruments business operator has performed a new when-issued transaction for its customer, the financial instruments business operator may have money or securities received as a security deposit from the customer for when-issued transaction appropriated for the amount of money to be received as a security deposit for the new when-issued transaction pursuant to the provisions of Article 4 to the extent corresponding to the amount calculated by deducting the amount set forth in item (ii) from the amount set forth in item (i):

Article 8(1)The total amount of the security deposit received prescribed in Article 3, item (ii), and paragraph (1), item (i), paragraph (2), item (i), sub-item (a) and item (ii), sub-item (a) and paragraph (3), item (i) of the preceding Article is calculated by deducting the following amounts related to margin transaction, and the total amount of the security deposit received prescribed in paragraph (5), item (i), paragraph (6), item (i), sub-item (a) and item (ii), sub-item (a) and paragraph (7), item (i) of that Article is calculated by deducting the following amounts related to when-issued transaction; provided, however, for the total amount of security deposit received prescribed in paragraph (2), item (i), sub-item (a) or paragraph (6), item (i), sub-item (a) of that Article, the amount set forth in item (i) for the margin transaction related to the unsettled account to be settled or the amount set forth in item (ii) for the when-issued transaction to be transferred is not to be deducted:

(2)In calculating the total amount of the security deposit received prescribed in the preceding paragraph, notwithstanding the provisions of Article 6, the substitute price when all or part of the security deposit related to the customer's margin transaction or when-issued transaction is substituted by securities is to be equal to the market value of the securities on the day before the calculation date multiplied by the rate prescribed in that Article.

(3)The profit or loss based on fluctuations in the market price of securities related to the customer's margin transaction or when-issued transaction referred to in paragraph (1) is the gain or loss arising from the difference between the agreed price of the securities and the value appraised at the market value of the securities on the day before the calculation date (when the market value of the day before the date does not exist, the market value on the nearest date).

(4)If a profit has arisen due to a reversing trade, when money corresponding to the profit is to be received as a security deposit from a customer related to margin transaction at the time of settling the unsettled account due to the reversing trade, the total amount of security deposit received prescribed in Article 3, item (ii) and paragraph (1), item (i), paragraph (2), item (i), sub-item (a), item (ii), sub-item (a) and paragraph (3), item (i) of the preceding Article may be calculated by adding the amount corresponding to the amount of profit.

(5)When the total amount of security deposit received prescribed in paragraph (3), item (i) of the preceding Article is calculated by adding the amount corresponding to the amount of profit referred to in the preceding paragraph pursuant to the provisions of that paragraph, money corresponding to the profit amount is deemed to be money received as a security deposit from a customer related to margin transaction, and the provisions of that paragraph apply.

Article 9(1)If an amount to be calculated as benefit has arisen based on fluctuations in the market price of securities related to the customer's margin transaction or when-issued transaction, a financial instruments business operator may not deliver money or securities corresponding to the amount to be calculated as benefit to the customer or appropriate the money or securities to the amount of money required to be received as a security deposit pursuant to the provisions of Article 4.

(2)If a customer has performed a cross trade, a financial instruments business operator may not deliver money or securities corresponding to the amount to be calculated as benefit by performing the cross trade to the customer before completing the cross trade or the transfer in the cross trade, or appropriate the money or securities to the amount of money to be received as a security deposit pursuant to the provisions of Article 4.

Article 10(1)For transactions which do not clearly indicate that the customer is to perform a margin transaction at the same time as placing an order for the purchase and sale of securities, a financial instruments business operator must not perform a transaction that settles the securities related to the sale or purchase by the transactions by the customer with an opposing sale or purchase of the securities.

(2)The provisions of the preceding paragraph do not apply to the case prescribed in Article 2, paragraph (2).