Modification of Rules & Regulations on Transfer of Positions


On June 16th, 2008, the Exchange has received approval from the Ministry of Economy, Trade and Industry (METI) to modify its Rules & Regulations, including changing its requirements for Transfer of Positions.

1. Expanding Conditions under which Transfer of Positions can be Implemented

Transfer of Positions is a rule designed for customer protection, which allows customers to transfer their positions from one member to another member. 
In the past, Transfer of Positions was only permitted when a customer had concluded a contract for such transfer in advance with a Broker Member and said Broker Member became a Defaulting Person or discontinued its brokerage business.
To provide greater protection and convenience to customers, the Exchange has modified its Rules & Regulations to also enable transfers when a customer, who has concluded a contract for Transfer of Positions with a Broker Member in advance, submits a request for transfer in accordance with the contract, and said request is accepted by the Broker Member. Transfers are no longer limited to cases such as the default or discontinuation of brokerage business by a Broker Member.

2. Additional Offset Method

When placing orders, customers were required to specify whether the order was intended to create a new position or offset an existing position.
To provide greater flexibility to market participants, the Exchange has introduced, in addition to the current method, a FIFO-based (First In, First Out) offset method, whereby customers are no longer required to select “new” or “offset” when placing an order. Customers can now use the offset method of their choice (i.e: specify “new” or “offset” on their orders or use the FIFO-based method).

 3. Restrictions

These modifications of our Rules & Regulations are limited to cases where clearing margins are deposited directly with the Clearing Organization for all Transfer of Positions. For requested Transfer of Positions, a new provision clarifying that the customer and the Customer of Intermediary FCM may not raise an objection applies.