(Proposed Text)
A GUIDE TO
FOREIGN EXCHANGE MARGIN TRANSACTIONS
September 2007
In commencing foreign exchange margin transactions, you should read this booklet thoroughly and understand what is explained in it.
Foreign exchange margin transactions may cause a loss due to the fluctuation of the prices of currencies which are objects of transaction. Even though foreign exchange margin transactions may produce substan-tial profits, they involve the risk of incurring significant losses. There-fore, as you commence or continue trading, in addition to reading this booklet, it is very important that you study the mechanics of transactions and their inherent risks and that you do this at your responsibility only if you believe that such trading is suitable in light of your financial resources, your trading experience, your purpose and other factors.
Contents
Risks and Other Important Matters Involved in Foreign Exchange Margin
Transactions ... 1
Mechanics of Foreign Exchange Margin Transactions ... 2
Method of Transaction ... 2
Margining ... 3
Payment and Receipt of Money upon Settlement ... 5
Tax on Profit ... 5
Procedures for Foreign Exchange Margin Transactions ... 6
Prohibited Acts concerning Foreign Exchange Margin Transactions .... 9
Company Information ... 12
Important Terms used in Foreign Exchange Margin Transactions ... 13
This booklet is required to be furnished by a financial instruments firm to customers under Article 37-3 of the Financial Instruments and Exchange Act, and covers foreign exchange margin transactions which are purchase and sale transactions of currencies and fall under, among over-the-counter derivatives transactions as defined in Article 2.22 of said Law, transactions provided in Ar-ticle 2.22 (1) of said Law.
* This English version is a translation of the original Japanese text. The original Japanese text will prevail should there be any difference in meaning between the English and Japanese versions.
Risks and Other Important Matters Involved in
Foreign Exchange Margin Transactions
Foreign exchange margin transactions may cause a loss due to the fluctuation of the prices of currencies which are the objects of transac-tion. When interest rates of currencies which are the objects of trans-actions and swap points you are receiving turn to be negative figures, you will have to pay swap points. Further, foreign exchange margin transactions 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 of-fer widens or it is possible that you are unable to make transactions as you wish.
When the trading system or online communication system con-necting 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.
We collect fees up to ¥( ) per contract for one-way transaction． The amount of fees depends on the trading volume and currency pair. Please read page ( ) for details.
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:
ABC Bank (banking business)
DEF Limited (securities business: supervised by the Financial Ser-vices Authority in the U.K.)
We deposit margins accepted from a customer with the above cov-ering firms, GHI Trust Bank and JKL Bank, and keep such margins separate from our own funds.
If any of us, covering firms or institutions with whom a customer's fund is deposited has suffered business or financial deterioration, such customer may suffer loss due to difficulty of return of such customer's
Mechanics of Foreign Exchange Margin Transactions
We conduct foreign exchange margin transactions in accordance with the Financial Instruments and Exchange Act and other relevant laws and regulations and the rules of the Financial Futures Association of Japan.☆
Method of Transaction
The following is the specifications of our foreign exchange margin transac-tions.
a. The objects of trading are U.S. Dollar/ Japanese Yen, Euro/ Japanese Yen, Australian Dollar/ Japanese Yen and British Pound/ Japanese Yen.
b. Trading unit is ( ) units in the foreign currency of each pair of curren-cies, which is common to all pairs of currencies.
c. Minimum price change is ( ) (equivalent to ¥ ( )), which is com-mon to all pairs of currencies.
d. We will quote an offer price and bid price simultaneously for each pair of currencies, and our customer can buy at the offer price and sell at the bid price. We usually offer at the price, subject to pair of currencies and market condi-tions, 0.01 to 0.05 higher than the mean price in the interbank market and bid at the price 0.01 to 0.05 lower than the mean price in the interbank market. Therefore, the offer price is higher than the bid price.
e. Open positions can be closed by delivery of currencies or offset transac-tion.
f. If a customer does not make a settlement by delivery or offset transactions, open positions are rolled over every business day to defer the settlement to the next business day.
g. Such roll-over has the effect that the customer borrows the sold currency and deposits the purchased currency. The customer will pay to or receive from us swap points equivalent to the difference between the interest rate of borrowing and the interest rate of depositing. Usually, swap points receiv-able by a customer are smaller than swap points payreceiv-able by the customer for each currency pair, or sometimes a customer pays swap points for both of
purchase and sale.
h. If a customer's loss has reached a certain level, we will, at out discretion, settle the positions by compulsion (which is called "loss cut"; please refer to "(7) Loss Cut Rules" of "☆Margining"). However, such loss cut rules may not limit the loss to the amount of margins on deposit if the market changes abruptly.
i. The settlement day in the case of resale or repurchase is the business day two business days after the day of such resale or repurchase: provided, that if such business day falls on a holiday for the mother country of the foreign cur-rency or the United States, the settlement day will be the next business day common to Japan, the mother country and the United States.
☆
Margining
(1) Placement of Margin Deposit
When you place an order for a foreign exchange margin transaction, please deposit with us at least the amount of initial margin requirements under (2).
(2) Margin Requirements
Minimum margin requirements are ¥ ( ), initial margin requirements are ¥ ( ) per trading unit, and maintenance margin requirements are ¥ ( ) per trading unit
(3) Margin Call
If the amount of margin on deposit drops below the maintenance margin re-quirements for open positions of foreign exchange margin transaction, the customer is required to deposit an additional margin to maintain the amount of margin on deposit at least initial margin requirements (if cash part of margin on deposit has turned to be negative, by cash for such negative amount) no later than ( ) o'clock on the immediately following day.
(4) Withdrawal of Cash
Cash part of margins on deposit may be withdrawn to the extent that mar-gins on deposit are not less than initial margin requirements.
(5) Valuation Profit or Loss and Swap Points
Valuation profit or loss as a result of mark-to-market to be made by us and swap points accrued as a result of roll-over will be added to or deducted from the cash part of margins on deposit.
(6) Deposit of Margin in the form of Securities, etc.
Margins may be deposited in the form of national government bonds, mu-nicipal bonds and share certificates listed on a financial instruments exchange in Japan. The value of such securities, etc. is 90%, 85% and 70% of market value, respectively: provided, that if the cash part of margins on deposit is a negative figure, you will have to deposit cash for such negative amount.
(7) Loss Cut Rules
When an amount of valuation loss after mark-to-market less swap points has reached ( ) % of margins on deposit, we will, in order to prevent fur-ther losses, make an offset transaction and close the position in a customer's account.
(8) Failure of Depositing Margin within Time Limit
If we require a customer to deposit margins and the customer fails to de-posit such margins within a stipulated time limit, we may, at our discretion, make resale or repurchase in the customer's account in order to settle such for-eign exchange margin transaction. (The same will apply in the case where a customer fails to make a payment due to us in connection with an foreign ex-change margin transaction.)
(9) Return of Margin
When a customer requests the return of margins on deposit after the offset transaction of foreign exchange margin transactions, we will return such mar-gins on deposit by ( ) o'clock on the business day two business days after the offset transaction or ( ) o'clock on the business day immediately fol-lowing the day of the request.
☆
Payment and Receipt of Money upon Settlement
Settlement will be made by paying sold currency and receiving purchased currency based on a delivery settlement price determined by the firm, and paying or receiving the profit or loss calculated on the basis of the difference between the delivery settlement price and the trade price.
(2) Cash Settlement
Our customer pays to or receives from us the amount of money calculated according to the following computation method.
{10,0000 currency units×trade price differential (Yen) ＋accumulated swap points}×trading volume
Note: Trade price differential means the difference between the trade price of a resale or repurchase and the trade price of the original purchase transac-tion or original sale transactransac-tion which has been offset by the resale or re-purchase.
☆
Tax on Profit
Profit arisen from over-the-counter foreign exchange margin transaction (trading profit and swap point revenue) is subject to comprehensive taxation as "sundry income." 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.
Procedures for Foreign Exchange Margin Transactins
When, as a customer, you conduct a foreign exchange margin transaction with us, you are advised to follow the procedures outlined below.(1) Commencement of Transactions
a. Receipt of this booklet
First, you will receive this booklet from us. You should fully understand the mechanics of foreign exchange margin transactions and their risks, and provide to us a written acknowledgment mentioning that you will conduct transactions in your judgement and at your responsibility.
b. Establishment of Foreign Exchange Margin Transactions Account
When you begin foreign exchange margin transactions, you are required to submit in advance an agreement regarding the establishment of a foreign ex-change margin transactions account to us for establishing such account. At the same time, we may ask you to show documents of your identification. You must have a certain level of investment experience, knowledge and fi-nancial resources to establish an account.
c. Opening a bank account
When placing an order for a foreign exchange margin transaction involving payment and receipt of a foreign currency, you need to open a bank account for such payment and receipt.
d. Submitting an intermediary agreement
When you request us to act as an intermediary for placing an order for a foreign exchange margin transaction, you are required to submit in advance an intermediary agreement to us.
(2) Instruction at the time of Placing Orders
When you place an order for a foreign exchange margin transaction, you are required to provide accurate instructions to us during our business hours with regard to:
a. a pair of currencies you are going to place an order for; b. sale or purchase;
c. the number of trading units;
d. the price (such as limit order and market order) (limit order includes ac-cepting of our offer price or bid price);
e. the life of the order; and
f. other instructions that a customer should give.
(3) Deposit of Margin
When you place an order for a foreign exchange margin transaction, you are required to deposit a stipulated amount of margins. If additional deposit of margins is required because of the shortfall of margins in excess of the specified limit or for other reasons, you will have to deposit additional deposit of margins.
Upon the receipt of margins from a customer, we will furnish the customer with a receipt for such margins.
(4) Closure of Open Positions by Resale or Repurchase
When a transaction to offset open positions has been concluded, such transaction is treated as resale or repurchase, and the volume of such transac-tion will be reduced from the open positransac-tions. A customer should designate open positions to be settled. No designation will be treated as instruction to use the first-in-first-out method. However, we arrange the balanced long and short positions (which is called "balanced positions") if a customer so wishes. Such balanced positions may cause duplicated cost for the difference between offer price and bid price, fees and margins and cost for the difference between swap points receivable and swap points payable, and therefore for may lack economic rationality.
(5) Conclusion of Transactions for which You Placed Orders
When a foreign exchange margin transaction for which you have placed an order is concluded, we will furnish you with a transaction report showing the details of the transaction concluded.
(6) Fees
We will collect fees as described in the following table. We collect fees at the time of order filling. (Consumption tax is not imposed on fees as the objects of our foreign exchange margin transactions are currencies and a
cus-tomer may settle transactions by delivery of the currencies. We will charge a certain fees for delivery settlement.)
(Table of Fees)
(7) Report on Open Positions, Margin, etc.
We will, in order to help a customer to confirm the state of trading, prepare and furnish, each time of conclusion of transaction if a customer requests, quarterly if a customer does not request (if there is no concluded transaction, annually; hereinafter such period is referred to as "reporting period"), a cus-tomer with a report of the details of transactions concluded during the report-ing period and the balance of positions, margins (includreport-ing securities, etc. de-posited as margin) and other unsettled accounts related to the customer's for-eign exchange margin transactions as of the last day of the reporting period.
(8) Furnishing of Statements by Electronic or Magnetic Method
If you agree with the receipt of statements from us by an electronic or magnetic method, you are requested to give a consent in writing or by an elec-tronic or magnetic method.
(9) Other Information
Please be sure to check the contents of notices or reports from us, and if you find they are incorrect or doubtful, you are advised to make an immediate in-quiry directly to our manager responsible for these matters.
Please ask us for further information about the mechanics of foreign exchange margin transactions, the procedures for transac-tions, etc.
Prohibited Acts concerning
Foreign Exchange Margin Transaction Acts
Please note that, according to the Financial Instruments and Exchange Act, financial instruments firms are prohibited from engaging in any of the following acts in connection with foreign exchange margin transactions with a customer as the counterparty, or an act to assume the duties of an intermediary, broker or agent for foreign exchange margin transactions on behalf of a customer (herein-after referred to as "foreign exchange margin transactions act"):
a. giving a customer false information regarding entering into a foreign exchange margin transaction contract (which means a contract to perform foreign exchange margin transaction act with a customer as a counterparty or on behalf of a customer; hereinafter the same) or solicitation therefor;
b. solicitation for entering into a foreign exchange margin transaction con-tract by offering a customer a definite prediction in respect of uncertain mat-ters or giving information which will likely give a false impression that such information is certain;
c. soliciting, by means of a visit or telephoning, a customer who has not requested the solicitation for entering into a foreign exchange margin trans-action contract to enter into a foreign exchange margin transtrans-action contract (provided, that an act to solicit a customer with whom the financial instru-ments firm has a continuous trading relationship (such customer is limited to a person with whom more than one over-the-counter financial futures trans-actions were conducted within one year before the date of the solicitation and a person having the balance of unsettled over-the-counter financial fu-tures transactions as of the date of the solicitation) and to solicit a juridical person engaging in foreign trade or other business regarding foreign ex-change transactions for the purpose of reducing the risk of loss arising from the fluctuation of foreign exchange rates are excluded from prohibited act); d. soliciting a customer to enter into a foreign exchange margin transaction
contract without making prior confirmation whether the customer has an in-tent to be solicited therefor;
e. soliciting a customer who has shown in advance the intent that the cus-tomer does not want to enter into a foreign exchange margin transaction con-tract (including the intent that the customer does not want further solicita-tion; hereinafter the same), or soliciting further a customer who was once so-licited to enter into a financial instruments transaction contract despite the fact that the customer has shown the intent that the customer does not want to enter into the foreign exchange margin transaction contract;
f. an act to solicit a customer to enter into or cancel a foreign exchange margin transaction contract by telephoning or visit at a time that the cus-tomer feels annoyed;
g. an act, in the case where a customer has suffered a loss or the predeter-mined profit has not been realized in foreign exchange margin transaction, to make an offer or a promise, or cause a third party to make an offer or a promise to the customer or a person designated by the customer that the fi-nancial instruments firm or the third party will offer a fifi-nancial profit to the customer or a third party to compensate the customer for the whole or part of the loss or to supplement the profit;
h. an act to make an offer or a promise or cause a third party to make an of-fer or a promise, in the case where a customer conducts foreign exchange margin transaction, to the customer or a person designated by the customer that the financial instruments firm or a third party will offer a financial profit to the customer or a third party to compensate the customer for the whole or part of losses or to increase the customer's profits;
i. an act to pay or cause a third party to pay a financial profit to, in the case where a customer conducts foreign exchange margin transaction, the cus-tomer or a third party to compensate the cuscus-tomer for the whole or part of losses or to increase the customer's profit arising from such transaction; j. failure of explanation by methods and to the extent necessary for a
cus-tomer to understand the contents of this booklet in furnishing this booklet in light of knowledge, experience and financial resource of the customer and the purpose to enter into a foreign exchange margin transaction contract; k. an act to make a representation that will likely give a false impression on
important matters regarding entering into a foreign exchange margin transac-tion contract or solicitatransac-tion therefor;
l. an act to make a promise to a customer or a person designated by the cus-tomer to offer a special profit, or to offer a special profit to a cuscus-tomer or a third party regarding a foreign exchange margin transaction contract (in-cluding an act to cause a third party to make a promise to offer a special profit or cause a third party to offer a special profit);
m. an act to employ deception, violence or duress in entering into or cancel-lation of a foreign exchange margin transactions contract;
n. refusing or taking unreasonably long time for the performance of foreign exchange margin transaction act under a foreign exchange margin transac-tion contract or fulfillment of, in whole or in part, other obligatransac-tions under a foreign exchange margin transaction contract;
o. an act to acquire money, securities or other property or customer margin or other guarantee money which belong to customers' account under a for-eign exchange margin transaction contract by falsifying market prices or through other unlawful means;
p. an act to gather customers without, in advance, informing that the finan-cial instruments firm will solicit to enter into a foreign exchange margin transaction contract and to solicit such customers to enter into such foreign exchange margin transaction contract;
q. an act to conduct foreign exchange margin transaction for a customer's account without obtaining the customer's consent;
r. an act that a financial instruments firm which is an individual or an officer (in the case where an officer is a juridical person, including a partner to per-form the duty of an officer) or employee of the financial instruments firm uses its responsibility to conduct foreign exchange margin transaction and conduct foreign exchange margin transaction based on information of cus-tomers' behavior regarding an order of foreign exchange margin transaction placed by a customer or other special information obtained in the course of carrying out the duties or for the purpose of seeking speculative profit en-tirely;
s. in the case of entering into a contract that, in respect of foreign exchange margin transaction, after obtaining a consent for the total amount of funds from a customer, matters such as the distinction of purchase or sale, pair of currencies, volume and prices, to which a customer does not give a consent, are determined by processing of a computer or other prefixed method in the case of occurrence of a specified event and the financial instruments firm conducts transactions in accordance therewith, failure to enter into such con-tract in writing (excluding the case of entering into by the method using an electronic data processing and network system or other method using infor-mation technology);
t. an act, in respect of foreign exchange margin transactions act, to solicit a customer to conduct transactions opposite, in terms of purchase or sale, to the customer's original foreign exchange margin transaction (such opposite transactions means transactions to reduce loss which may arise from the original transactions) or act similar thereto.
Company Information
The outline of the financial instruments firm is as follows:
Example: History, date of establishment, amount of capital, location of the prin-cipal business office, other business engagement, contact for grievances and membership of all of associations and recognized investor protection organiza-tions.
Important Terms used in
Foreign Exchange Margin Transactions
Additional Margin
An amount of money to be additionally deposited when, due to a daily change in the market price, the amount of margins on deposit is smaller than the amount required to maintain the customer's open positions.
Bid
An indication by a financial instruments firm of willingness to buy a speci-fied product for a specispeci-fied volume at a specispeci-fied price. A customer can sell the product at such price.
Balanced Position
Simultaneous holding of long positions and short positions for the same products.
Cash Settlement
A method of settling futures transactions or options transactions by paying or receiving cash value based on the computed profits or losses without deliver-ing the underlydeliver-ing assets.
Covering Transaction
A financial instruments firm conducts, for the purpose of reducing the risk of loss which arises from the price fluctuation of foreign exchange margin trans-actions with customers as a counterparty, on-exchange derivatives transtrans-actions or foreign exchange transaction or foreign exchange margin transactions with other financial instruments firm or other person as a counterparty for the same object currencies, purchase or sale and other conditions as the foreign exchange margin transactions with customers. Such transaction is called covering
trans-action.
Delivery Settlement
In the case of foreign exchange margin transactions, a method of settling open positions by paying sold currency in exchange for purchased currency.
Derivatives Transaction
A transaction, derived from an underlying transaction, the price of which is determined by the value of such underlying transaction. Futures transaction and options transaction are included in derivatives transaction.
Financial Instruments Firm
A person registered under the Financial Instruments and Exchange Act to engage in the business handling financial instruments transaction including for-eign exchange margin transaction.
Foreign Exchange Margin Transactions
A hybrid transaction combining a foreign exchange transaction to exchange currencies and a margin transaction to deal larger amount of transaction by de-positing relatively smaller amount of money. Categorized as over-the-counter derivatives transactions.
Hedging Transaction
A transaction of taking positions on an on-exchange financial instruments market or over-the-counter market opposite, in terms of risk, to assets or liabili-ties which are now held or will be held in the future in order to reduce the risk involved in price fluctuation of such assets or liabilities.
Intermediary Transaction
A transaction in which a financial instruments firm passes its customer's or-der to another financial instruments firm in the name of the customer.
Limit Order
An order in which a customer specifies the limit of price (the lowest price when selling or the highest price when purchasing). On the contrary, an order in which a customer does not specify any price in advance is called market order.
Long Position
An unsettled purchase transaction.
Loss Cut
A compulsory settlement of customer's open positions by a financial instru-ments firm, at the time when a loss of a customer has reached a pre-determined level, for the purpose of risk control.
Margin
Guarantee money deposited for the purpose of insuring the contract fulfill-ment for futures or options transactions, etc. Margins are sometimes classified into initial margins to be deposited when a transaction is concluded and mainte-nance margins which must be maintained on deposit for an open position at all times. If the amount of margin on deposit drops under the maintenance margin requirements, the customer is required to make an additional deposit of margin to the level of initial margin requirements.
Mark-to-Market
Procedures for the valuation of open positions in order to reflect a daily change in market prices.
Offer
An indication by a financial instruments firm of willingness to sell a speci-fied product for a specispeci-fied volume at a specispeci-fied price. A customer can buy the product at such price.
Over-The-Counter Derivatives Transaction
A derivatives transaction conducted in a place other than an on-exchange financial instruments market operated by a financial instrument exchange or for-eign financial instruments market.
Over-The-Counter Financial Futures Transaction
A derivatives transaction of financial instruments such as currency and in-terest rate conducted in a place other than an on-exchange financial instruments market operated by a financial instruments exchange or foreign financial instru-ments market. Foreign exchange margin transaction is categorized as an over-the-counter financial futures transaction.
Repurchase
A purchase transaction to offset (decrease) a short position.
Resale
A sale transaction to offset (decrease) a long position.
Roll-over
Carrying forward of open position of foreign exchange margin transactions, which were not offset during the trading day, to the next trading day.
Short Position
An unsettled sale transaction.
Specific Investor
An eligible institutional investor, the national government, the Bank of Ja-pan, etc. which are deemed to have professional knowledge and experience of investment in securities including over-the-counter financial futures transactions. An individual satisfying a certain criteria may request to be treated as a specific investor and a certain specific investor may request to be treated as a customer other than a specific investor.
Swap Point
Roll-over of foreign exchange margin transactions is deemed to be effec-tively equivalent to borrowing of sold currency and lending of purchased cur-rency for the period from the settlement day for the trading day until the settle-ment day for the next trading day. The amount calculated on the basis of the interest rate differential of currencies to adjust such differential is called swap point in the case where the settlement day is carried forward by a roll-over.
(Contact)
Your inquiry about foreign exchange margin transactions will be answered at the above contact.
Remarks on Preparation and Furnishing of Guide to Foreign Exchange Margin Transactions
1. An association member should refer to this proposed text and make neces-sary addition or change according to its foreign exchange margin transaction. An association member may change the term used herein to the term that the association member uses including the name of transaction. However, matters required to be stated under the laws or regulations (refer to 6.) shall not be omitted.
2. A registered financial institution should replace "financial instruments firm" in the text with "registered financial institution".
3. Characters and numerals shall be printed no smaller than 8 points as speci-fied in JIS Z8305 (matters required to be explained in the first part or in the frame must be printed no smaller than 12 points as specified in JIS Z8305). 4. With respect to the part at the bottom of "Contents", if an association
member offers to services for transactions which fall under Article 2.22 (2) of the Financial Instruments and Exchange Act (which means transactions the ob-jects of which are indices of currencies and which can be settled only by pay-ment and receipt of cash), the association member should make necessary changes in related parts in this part, "Mechanics of Foreign Exchange Margin Transaction" and "Procedures for Foreign Exchange Margin Transactions". In this case, the explanation in the bracket of "(6) Fees" in "Procedures for Trans-actions" should be replaced with "Consumption tax is collected together with the fees".
5. An association member may furnish a customer with the contents of this booklet by the method using an electronic data processing and network system or other method using information technology after obtaining a consent from the customer.
6. Matters that an association member is required to state under the laws and regulations:
(1) a customer should read fully (at the beginning);
(at the beginning);
(3) the summary of fees (in a frame);
(4) possibility of loss which may arise from movement of interest rate, price of currency, etc (in a frame);
(5) possibility that the amount of loss under (4) exceeds the amount of mar-gins on deposit (in a frame);
(6) if there is any covering counterparty, the name and business of each counterparty (including the name of the foreign authority supervising such counterparty in the case of a foreign juridical person); however, in the case where an association member conducts covering in the interbank foreign ex-change market and cannot specify the covering party in advance, stating such fact suffice (in a frame);
(7) in the case of assuming the duties of an intermediary, etc., the name and business of the intermediary counterparty (including the name of the foreign authority supervising such counterparty in the case of a foreign juridical per-son);
(8) management method adopted by the association member for margins de-posited by customers and institution with which such margins are dede-posited (Such management method shall comply with Article 43-3 of the Financial Instruments and Exchange Act and Articles 143 to 145 of the Cabinet Office Ordinance on Financial Instruments Business, and the name of an institution with which such margins are deposited shall be stated.) (in a frame);
(9) whether cancellation of a contract (cooling-off) is allowed or not (in a frame);
(10) the trade name and location of an association member;
(11) the statement that it is a financial instruments firm and the registration number;
(12) Indices to cause losses directly and the reasons therefor;
(13) if the amount of loss under (12) may exceed the amount of margins on deposit, the indices to cause such loss directly and the reasons therefor; (14) if a customer may suffer losses due to a change in business or financial
whom customers' margins are deposited, such event and the reasons therefor (in a frame);
(15) if the amount of loss under (14) may exceed the amount of margins on deposit, the matters to cause such loss directly and the reasons therefor; (16) the summary of taxation;
(17) if the transaction is subject to loss cut rules, the details (including the pos-sibility of loss exceeding the amount of margin on deposit);
(18) if a customer is allowed to cancel a contract, the details and the summary of method;
(19) company information of an association member;
(20) the outline of types of business and manner of operation of financial in-struments business carried out by an association member;
(21) method to communicate with an association member by a customer; (22) with respect to margins, the amount, ratio to the notional principal amount,
computation method, types of, prices applicable to and method to deposit and return securities to be used as margin, minimum margin and additional mar-gin;
(23) if there is any difference between a bid price and an offer price quoted by the association member, such fact;
(24) pricing method of a bid price and offer price when the association mem-ber quotes such prices;
(25) method to fulfill liabilities and settlement method; (26) method to collect fees;
(27) matters regarding procedures for transaction;
(28) if there is any difference between swap points receivable by customers and swap points payable by customers, such fact;
(29) if a customer may hold balanced long and short position, the explanation of disadvantage to do so; and
