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 In July 2005、registration requirements were enforced on FX firms and new regulations such as prohibition of unrequested solicitation have been implemented for over-the-counter transactions (please refer to "Advice to Individual Customers Who Intend to Conduct FX Transactions" for regulations, etc. on solicitation of FX transactions). FX transactions have shown significant expansion among retail investors in Japan since then. Various regulations have been reviewed by the Financial Services Agency in 2009 in order to facilitate the environment to allow investors to trade with ease and new regulations have taken effect sequentially from February 2010 to August 2010.

 In addition, in June 2016, the decision was made to introduce leverage regulations (different in content from leverage regulations on transactions by individual customers) for over-the-counter FX transactions conducted by corporate customers, too. (Effective in February 2017.)

 The summary of such new regulations are explained as follows:

1.Regulations on Separately Controlled Customer Money Trust

 As from February 1, 2010 ※1, an FX firm, etc. is required to keep margins deposited by customers by means of depositing as money trust with trust banks, etc.

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2.Regulations on Loss-Cut Rules

 As from February 1, 2010 ※2, all FX firms are required to implement, and comply with, loss-cut rules.

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3.Regulations on Leverage

 As from August 1, 2010, FX firms are required to collect the amount of margins from each customer at least 2%, as from August 1, 2011 at least 4% of the trading amount in conducting FX transactions with customers.

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 In addition, as from February 2016, business operators handling FX became obliged to accept margins of at least the ratio computed in the manner prescribed by the Financial Services Agency in conducting FX transactions with corporate customers.

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※1 and ※2 Effective as from the commencement of business in the case of a firm commencing FX business newly on or after August 1, 2009.