Self-Regulatory Operations
About Self-Regulatory Operations
TFX conducts self-regulatory operations to ensure fairness in market derivatives transactions on the financial instruments exchange market created by TFX, and to protect investors. Self-regulatory operations are prescribed by the Financial Instruments and Exchange Act (the “FIEA”), of which the operations relevant to TFX are as follows.
- Investigating whether Trading Members are operating services in compliance with the FIEA, the exchange’s regulations, and other relevant rules.
- Examining whether transactions executed in the exchange market are fair.
- Examining whether Trading Members meet the criteria for trading membership
- Taking disciplinary measures against Trading Members who have violated the FIEA, the exchange’s regulations, or other relevant rules.
- Formulating the exchange’s regulations concerning 1 to 4 above.
As one of its management philosophies, TFX pledges to “establish a fair, reliable, and convenient financial instruments market as public infrastructure and contribute to sound financial and economic development in Japan.” Self-regulatory operations represent TFX’s efforts to achieve this management philosophy by ensuring fairness in transactions on the market it creates and providing a market on which investors can trade with security.
Independence of TFX’s Self-Regulatory Operations
TFX ensures the independence of its self-regulatory operations so that no conflicts of interest will arise between its profit-making activity and self-regulatory function as a stock company.
Specifically, TFX establishes the Self-regulatory Committee, which is independent from TFX’s business execution organizations, in accordance with the FIEA, to decide matters concerning self-regulatory operations. Also, while the Self-regulatory Committee appoints three Self-regulatory Committee members from TFX’s directors by resolution of its board of directors, the majority (two members) of the Self-regulatory Committee members are outside directors, and an outside director is appointed as the chairperson of the Committee.
TFX’s Self-Regulatory Operations
Major self-regulatory operations conducted by TFX are as follows.
