Self-Regulatory Operations: Recommendations, Regulatory Measures, or Disciplinary Measures on Trading Members

Recommendations, Regulatory Measures, or Disciplinary Measures on Trading Members

As part of its efforts to ensure and maintain fairness in transactions, TFX gives recommendations to, or imposes regulatory measures or disciplinary measures on Trading Members as described below by resolution of the Self-regulatory Committee.

1.Recommendations to Trading Members

If any issue with the business or financial condition of a Trading Member has been found, TFX will recommend that the Trading Member take appropriate measures.

2.Regulatory Measures on Trading Members

If a Trading Member goes, or is found to be likely to go, bankrupt, TFX will, after conducting a hearing with the Trading Member, suspend or restrict the Trading Member’s trading, or take other disciplinary measures. thereby preventing the risk associated with continuation of trading from spreading.

3.Disciplinary Measures against Trading Members

If a Trading Member violates the FIEA, TFX regulations, or other relevant rules, TFX will, after conducting a hearing with the Trading Member, suspend its trading, disqualify the trading membership, or take other disciplinary measures.

4.Procedures for Disciplinary Measures, etc.

In cases where TFX takes Disciplinary Measures, etc. against a Trading Member, the Self-regulation Bureau will conduct a hearing with the Trading Member, investigate the facts that have caused the Disciplinary Measures, etc., and report the investigation results to the Self-regulatory Committee. The Self-regulatory Committee will refer the details of the Disciplinary Measures, etc. to the Discipline Committee. The Discipline Committee will then examine the details of the Disciplinary Measures, etc. and return its findings to the Self-regulatory Committee. Then, the Self-regulatory Committee will decide the details of the Disciplinary Measures, etc. based on these findings and report to the Board of Directors. Also, TFX will notify the details of the Disciplinary Measures, etc. to the Trading Member and publish them on the TFX website.
If a Trading Member receives disciplinary measures to suspend all or part of its financial instruments business, etc. under laws and regulations, TFX will take measures such as suspension of trading against the Trading Member depending on the details of such measures, and report that effect to the Self-regulatory Committee.

Discipline Committee

The Self-regulatory Committee has the Discipline Committee as an expert committee to refer matters to concerning TFX’s self-regulatory operations.
The Self-regulatory Committee consults the Discipline Committee when it is to impose regulatory measures or disciplinary measures on a Trading Member.
The Self-regulatory Committee appoints as Discipline Committee members those persons (other than TFX officers and employees) who are able to make fair judgments and have extensive knowledge and experience. The Discipline Committee is composed of three members.

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