A Comparative Table of the Prior and Amended Article Provisions
Prior   Amended

Risks and Other Important Matters Involved in OTC Derivatives Transactions etc.

OTC derivatives transactions etc. may cause a loss due to the fluctuation of the prices of instruments which are the objects of the transactions. When interest rates of instruments which are the objects of transactions and swap etc. you are receiving turn to be negative figures, you will have to pay swap etc. Further, OTC derivatives transactions etc. involve an amount larger than the amount of margins that a customer is required to deposit for the transactions, and therefore, the amount of such loss may be larger than the amount of margins.
When the market prices change abruptly, the spread of bid and ask widens or it is possible that you are unable to make transactions as you wish.
When the trading system or online communication system connecting a financial instruments firm with a customer fails to operate properly, it is possible that you are unable to place, execute, confirm or cancel an order.
Online trading is free of charge. We collect fees up to 3,000 JPY or equivalent per order by Telephone.
A customer is not allowed to cancel an order (cooling-off) once it has been filled.
We conduct covering transactions with the following firms in order to reduce risks arising from transactions with a customer: MF Global FXA Securities currently uses the following counterparties.

1. Saxo Bank
The Danish Financial Supervisory Authority (FSA) register number: 1149
Business: Banking, including foreign exchange margin trading.
2. OCBC Securities
Monetary Authority of Singapore (MAS)
Register number:CMS000019-3(fully-owned subsidiary of OCBC Bank)
Business: Securities
3. MF Global Singapore Pte. Limited
Monetry Authority of Singapore (MAS)
Register number:CMS000169-1970
Business:Share trading and foreign exchange margin trading
4. MF Global Australia Limited
Australian Securities and Investments Commission(ASIC)
Register number: AFSL 230563
Business: Securities
5. UBS AG(Tokyo Branch)
The Japanese Financial Services Agency(FSA)
Register number: Kanto Local Finance Bureau 605
Business: Banking
6. Barclays Bank PLC
The Japanese Financial Services Agency(FSA)
Register number: Kanto Local Finance Bureau 626
Business: Banking
7. Commerzbank(Tokyo Branch)
The Japanese Financial Services Agency(FSA)
Register number: Kanto Local Finance Bureau 641
Business: Banking

We deposit margins accepted from a customer with JSF Trust and Banking Co., Ltd, and keep such margins separate from our own funds.
* The counterparties and trust bank are subject to change.。
 
Risks and Other Important Matters Involved in OTC Derivatives Transactions etc.

OTC derivatives transactions etc. may cause a loss due to the fluctuation of the prices of instruments which are the objects of the transactions. When interest rates of instruments which are the objects of transactions and swap etc. you are receiving turn to be negative figures, you will have to pay swap etc. Further, OTC derivatives transactions etc. involve an amount larger than the amount of margins that a customer is required to deposit for the transactions, and therefore, the amount of such loss may be larger than the amount of margins.
When the market prices change abruptly, the spread of bid and ask widens or it is possible that you are unable to make transactions as you wish.
When the trading system or online communication system connecting a financial instruments firm with a customer fails to operate properly, it is possible that you are unable to place, execute, confirm or cancel an order.
Online trading is free of charge. We collect fees up to 3,000 JPY or equivalent per order by Telephone.
A customer is not allowed to cancel an order (cooling-off) once it has been filled.
We conduct covering transactions with the following firms in order to reduce risks arising from transactions with a customer: MF Global FXA Securities currently uses the following counterparties.

1. Saxo Bank
The Danish Financial Supervisory Authority (FSA) register number: 1149
Business: Banking, including foreign exchange margin trading.
2. OCBC Securities
Monetary Authority of Singapore (MAS)
Register number:CMS000019-3(fully-owned subsidiary of OCBC Bank)
Business: Securities
3. MF Global Singapore Pte. Limited
Monetry Authority of Singapore (MAS)
Register number:CMS000169-1970
Business:Share trading and foreign exchange margin trading
4. MF Global Australia Limited
Australian Securities and Investments Commission(ASIC)
Register number: AFSL 230563
Business: Securities
5. UBS AG(Tokyo Branch)
The Japanese Financial Services Agency(FSA)
Register number: Kanto Local Finance Bureau 605
Business: Banking
6. Barclays Bank PLC
The Japanese Financial Services Agency(FSA)
Register number: Kanto Local Finance Bureau 626
Business: Banking
7. Commerzbank(Tokyo Branch)
The Japanese Financial Services Agency(FSA)
Register number: Kanto Local Finance Bureau 641
Business: Banking
8. FXCMJapan Securities Co.,Ltd
The Japanese Financial Services Agency(FSA)
Register number: Kanto Local Finance Bureau 1718
Business: Foreign exchange Margin Trading

We deposit margins accepted from a customer with JSF Trust and Banking Co., Ltd, and keep such margins separate from our own funds.
* The counterparties and trust bank are subject to change.。


Prohibited Acts concerning OTC Derivatives Transaction etc. Acts   Prohibited Acts concerning OTC Derivatives Transaction etc. Acts

U.

in the case where, with respect to currency related derivatives transactions (including OTC foreign exchange margin transactions; in v. the same), the mount of margins deposited by a customer (net of paper profit) has fallen short of the amount prescribed by the Commissioner of the Financial Serviced Agency (4% as from August 1, 2011; hereinafter the same), an act to continue transactions without requiring such customer to deposit such shortage immediately after the conclusion of such transactions;		  
U.

in the case where, with respect to currency relaed derivatives transactions (including OTC foreign exchange margin transacttions; in v. the same), the mount of margins deposited by a customer (net of paper profit) has fallen short of the amount prescribed by the Commissioner of the Financial Serviced Agency (2% as from August 1, 2010 and 4% as from August 1,2011;hereinafter the same), an act to continue transactions without requiring such customer to deposit such shortage immediately after the conclusion of such transactions;


Margin Requirements
At least 50,000 yen (100,000 yen applied from July 25,2011)or equivalent in other currency for Margin is required to open trading account. Please check the maintenance Margin (= required margin to keep you position) per trade and need to make margin deposit.
*The rate of a maintenance margin of the trading amount per one trading unit is as follows.

Individual Customer :
2%(8% as 50.1 lots and more)
(4% applied from July 25,2011)

Corporate Customer :
1% (4% as 50.1 lots and more)

*The maintenance margin for trading is calculated on the real time based on the above mentioned the rate of the margin requirement. Please refer to our web site.		  

Margin Requirements
At least 100,000 yen or equivalent in other currency for Margin is required to open trading account. Please check the maintenance Margin (= required margin to keep you position) per trade and need to make margin deposit.
*The rate of a maintenance margin of the trading amount per one trading unit is as follows.

Individual Customer :

4%

Corporate Customer :
1% (4% as 50.1 lots and more)

*The maintenance margin for trading is calculated on the real time based on the above mentioned the rate of the margin requirement. Please refer to our web site.


Tax on Profit

Profit arisen from OTC derivatives transactions etc. (trading profit and swap etc. revenue) is subject to comprehensive taxation as “sundry income” in the case of an individual customer. Therefore, a customer who has earned more than \200,000 during each calendar year (from January 1 to December 31) is required to submit an income tax report. Profit arisen from OTC derivatives transactions etc. is subject to taxation as corporate income, in the case of juridical persons. When a customer of a financial instruments firm has made cash settlement, etc. in respect of OTC derivatives transactions etc., the firm, in principle, submits a payment report stating the name, address, amount paid and other related information regarding the payment to the director-general of the tax office which has a jurisdiction over the financial instruments firm, etc. Please ask a professional such as a certified tax accountant for details

  

Tax on Profit

until December 31st 2010

Profit arisen from OTC derivatives transactions etc. (trading profit and swap etc. revenue) is subject to comprehensive taxation as “sundry income” in the case of an individual customer. Therefore, a customer who has earned more than \200,000 during each calendar year (from January 1 to December 31) is required to submit an income tax report. Profit arisen from OTC derivatives transactions etc. is subject to taxation as corporate income, in the case of juridical persons. When a customer of a financial instruments firm has made cash settlement, etc. in respect of OTC derivatives transactions etc., the firm, in principle, submits a payment report stating the name, address, amount paid and other related information regarding the payment to the director-general of the tax office which has a jurisdiction over the financial instruments firm, etc. Please ask a professional such as a certified tax accountant for details

from January 1st 2011

Profit arisen from OTC foreign exchange margin transaction (trading profit and swap point revenue; hereinafter the same) is subject to self-assessed separate taxation as "sundry income," in the case of individual customers for transactions on and after January 1, 2012. Therefore, a customer is required to submit an income tax report. Tax rate is fixed at 15% for income tax and 5% for local tax. Such profit and loss can be offset against profit or loss from other cash settled futures transactions. Further, if such offset results in losses, such losses can be carried forward for the following three calendar years under certain requirements. Profit arisen from OTC foreign exchange margin transaction is subject to taxation as corporate income, in the case of juridical persons. When　a customer of a financial instruments firm has made cash settlement, etc. in respect of OTC foreign exchange margin transactions, the firm, in principle, submits a payment report stating the name, address, amount paid and other related information regarding the payment to the director-general of the tax office which has a jurisdiction over the financial instruments firm, etc.

Please ask a professional such as a certified tax accountant for details.



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