IMEX Corporation's Bankruptcy Procedure Initiated

2007.3.30

Today (March 30th, 2007), TOCOM-member IMEX Corporation filed an application to a court for voluntary bankruptcy. Based on this filing, the court has declared the commencement of the bankruptcy proceedings.

Following this ruling, IMEX has fallen into a category as defined under paragraph 1, item 2, article 126 of the Articles of Incorporation. Therefore TOCOM, in accordance with its Articles of Incorporation and Market Rules, dealt with IMEX’ outstanding positions in the following manner.

1/ Transfer of customer positions

Among IMEX’ outstanding customer positions, positions that were notified by IMEX and Nippon First Securities Co., Ltd. are to be transferred to Nippon First Securities.

2/ Settlement of remaining outstanding positions

Being a non-clearing participant, IMEX’ outstanding positions, except the above transferred ones, were settled against offsetting transactions made by Koyo Futures Co., Ltd., IMEX’ Designated Clearing Participant, in accordance with the rules.

Unlike a failure by a clearing participant, such as a failure to settle at the clearing house, a Designated Clearing Participant has the responsibility, as per separately specified rules, to handle the settlement when a non-clearing participant goes bankrupt, as in this case. Thanks to this procedure, the outstanding positions were handled without affecting TOCOM’s market prices or causing any problems to other members.

(Note) Returning margins to customers who have settled their positions

For customers who have settled their outstanding positions, JCCH (Japan Commodity Clearing House Co., Ltd.) will proceed with the returning of margins in accordance with its rules.

 
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