Self-Regulatory Operations: Inspecting Trading Members

Inspecting Trading Members

TFX examines (inspects) Trading Members on their compliance with the FIEA and TFX regulations for the purpose of ensuring fairness in transactions and protecting investors.

The four types of inspections indicated in table 1 below will be conducted by the two methods stated in table 2 below.

1.Types of Inspections

Regular inspection In accordance with the fiscal year plan, regular inspections of the overall operations of Trading Members’ financial instruments businesses relating to TFX-listed products are conducted.
Partial inspection A partial inspection of operations within the scope of an ordinary inspection; mainly, the status of the segregated management of customers’ margins is inspected.
Special inspection An ad-hoc inspection is conducted by limiting the scope to specified matters on an ad-hoc basis, separately from regular and partial inspections.
Inspection for confirmation Inspection for cconfirmation is conducted to confirm the present condition of a member who has received a recommendation issued under Article 68.1 and has been required to report on the actions taken for improvement.

2.The Manner of Inspections

Field inspection Inspection to be conducted at a sales office or business office of a Trading Member.
Documentary inspection A document inspection is conducted if just inspecting documents submitted by Trading Members is considered sufficient.

Measures on Inspection Results

TFX gives recommendations or imposes regulatory measures or disciplinary measures (“Disciplinary Measures, etc.”) according to the degree of violation of the FIEA and TFX regulations, flaw, and the like found by inspections.