FXA Securities Ltd manages clients’ segregated assets by “margin to hedging counter parties”, “designated bank deposit” and “designated trust deposit”

The customer's assets segregated by “designated trust deposit” will be protected. (Note that only a part of the clients’ assets will be segregated in “designated trust deposit”.) The assets in “designated trust deposit” will be handed to the trust administrator from the JSF Trust & Banking, the money in “designated trust deposit” will be refunded to respective customers pro rata basis within the range of the said assets in the “designated trust deposit”.

At FXA Securities Ltd, the inner management representative will be assigned as a trust administrator (hereinafter the first party). The first party will verify the amount of “designated trust deposit” and other client’s segregation with clients’ assets and change the allocation if necessary.

In addition, the attorney will be assigned as the trust administrator (hereinafter the second party). In an event of mishap, the second party will take over the operation to execute customer's rights against the trust bank for the sake of the clients.

The segregation will be

Required segregation for clients’ asset <= “the margin to hedging counter parties” + “designated bank deposit” + “designated trust deposit”

Trust Account Protection does not guarantee the principal of the foreign exchange margin transaction. There is a risk of loss exceeding a customer's principal by fluctuation of exchange rate etc. on the foreign exchange margin trading.

The clients cannot make a payment request directly to the Trust Bank.

In the event of mishap at FXA Securities Ltd, a client will receive dividend of the assets in the trust through the second party. In this case, the dividend amount will be after the payment of expenses to the second party.

The “designated trust deposit” is not a mandatory requirement by law. Therefore, the “designated trust deposit” might be terminated by expiration of a trust period, or cancellation of trust. In the event of termination, FXA securities Ltd will notify all customers about this issue. Moreover, the method of segregation may be changed due to the rectification of laws and/or regulations etc.

Trust scheme does not operate in real time. The effective amount in “designated trust deposit” will be calculated and allocated once a week. As a result, actual deposit in “designated trust deposit” will take a certain time.

If necessary, FXA Securities Ltd may provide the clients' personal information to the trust administrator etc., for the purpose of “operation for segregation management” or “distribution of trusted fund”.

In the case of mishap, the trust administrator (the second party) shall be assigned to perform a role of distribution of the assets in the trust to the respective clients. The second party shall have no obligation for the business of FXA Securities Ltd.

JSF Trust & Banking does not guarantee the refund of the assets in the trust to the clients, nor take any responsibilities for the administrators and the operation of the trust administrators.