Clearing Members are Trading Members who hold clearing qualifications and become TFX's counterparties for financial futures clearing businesses. Specifically, Clearing Members go into a direct credit-debt relationship with TFX upon a financial futures transaction, and settle funds and pay/receive margins with TFX.

TFX's Clearing Members are banks, securities firms, central cooperative financial institutions, credit associations, and foreign banks and securities who satisfy the specific financial requirements. Because TFX is the counterparty for all trades, and Clearing Members hold joint responsibility upon debt obligations, trading on TFX greatly reduces counterparty risk (credit risk of trade counterparty) compared to over-the-counter (OTC) trading.

Clearing Members who have received approval for financial futures brokerage from the FSA can assume clearing businesses for trades for Trading Members. Specifically, Clearing Members go into a direct credit-debt relationship with TFX in place of the Trading Member for their Interest Rate futures transaction, and settle funds and pay/recieve margin with TFX. By assuming clearing businesses, Clearing Members can explore new business opportunities such as accepting clearing commission from Trading Members, etc.
Upon assuming clearing businesses, a Clearing Member needs to enter into a Clearing Agreement with the Trading Member, and become the Trading Member's "Designated Clearing Member".

• ·Settlement of funds and payment/receipt of margins,etc. with TFX upon a market derivatives trading execution on the TFX market.
• ·In case of a Designated Clearing Member, settlement of funds and payment/receipt of margins,etc. with TFX in place of Trading Members.

1. Please contact TFX for procedures to obtain clearing qualification. TFX will explain the necessary procedures and requirements, as well as the necessary systematic environment for trading.
2. .Turn in a Clearing Qualification Application Form to TFX. If Trading Qualification is not yet obtained, turn in a Trading Qualification Application Form also.
3. TFX will examine the application based on the specified qualification.
   

   (Clearing Qualification Requirements)

   • -A corporation having a principal or liaison office in Japan.
   • -Has human resources capable of market derivatives transaction and assuming clearing operations.
   • -Has good financial standing.

4. After clearing qualification is approved, the necessary procedures (system set-up, payment for trading registration fee, etc.) are to be taken, after which trading becomes possible on the TFX market.
5. 5.An applicant acquires at least one kind of trading qualification.

·Clearing Registration Fee:10,000,000 yen

To see about Trading Registration Fee, click here.

·System Set-up Costs: not applicable

This is in the case of assuming small-scale basic clearing operations which require only the basic trading system set-up

·Clearing Deposit: Amount calculated on the basis of the Member's risk exposure(minimum 50,000,000 yen).

Clearing Members are in direct credit-debt relationship with TFX, and TFX keeps Clearing Deposits from Clearing Members in case of any default.