With the deregulation and globalization of financial markets advancing rapidly in recent years in the face of the improving information technology and financial technology, the financial futures markets have grown enormously and become an integral part of global capital markets.
Naturally, the role played by a corporation engaged in financial futures business has gained importance as the number of investors and use of such products has increased.
Reflecting such trends, the Financial Futures Association of Japan (FFAJ) was established in August 1989 by the authorization of Minister of Finance pursuant to the Financial Futures Trading Law promulgated in 1988. The primary objectives of FFAJ is to ensure the protection of investors and sound growth of the financial futures industry through proper business management of financial futures firms.
In accordance with the revision of the Financial Futures Trading Law in 1992, FFAJ reinforced its function as a self-regulatory body to further enhance its services. The Financial Futures Trading Law was further revised in July, 2005, with the consequence that the over-the-counter financial futures transactions with retail customers have been counted as a financial futures business, and the registration of the members°«sales representatives and the mediation services to settle the disputes between members and investors have been added to the major services of FFAJ.
"Financial Instruments and Exchange Law (FIEL)" was enacted to integrate the Financial Futures Trading Law and other investment related laws and took effect on September 30, 2007. Under the FIEL, the terms of former "financial futures firms," "securities firms" and other investment firms were integrated into "financial instruments firms" and banks or other financial institutions registered under said Law were defined as "registered financial institutions," and FFAJ has become a "public-interest corporation financial instruments firms association".
As of November 2014 FFAJ has a total membership of 163 organizations ( 154 Membership and 9 Special Membership) and is pursuing its mission, as only self-regulatory organization for financial instruments firms and registered financial institutions carrying out financial futures business, by providing services in such areas as guidance on industry-wide self regulation, settlement of claims and grievances, mediation services to settle disputes, industry research and planning, and public relations and training.
- Since July, 2000, financial instruments firms, registered financial institutions and FFAJ have been under the supervision of the Commissioner of the Financial Services Agency.
- Formulating self regulatory rules for members and providing them with audit, guidance and recommendations.
- Working for the prompt solution of investors complaints and grievances in cooperation with the members.
- Conducting research on both domestic and foreign financial futures markets, compiling statistical data and preparing recommendations for the sound growth of the industry.
- Issuing publications on financial futures and hosting seminars and training, and public relations through its Website.
Information of Business and Financial Conditions
This disclosure of information is made pursuant to "disclosure of public-interest corporations through internet", as agreed by members of the ministerial council regarding supervision of public-interest corporations on August 28, 2001.