Permission from Overseas Relevant Authorities

Remote trading participant system

The Remote Trading Participant system allows foreign financial instruments firms without business bases in Japan to directly participate in the exchange market as trading participants. It was introduced in 2009.

Remote trading participants are able to acquire the same trading qualifications as those of regular trading participants. However, applicants are required to be authorized pursuant to the Financial Instruments and Exchange Act (FIEA) as a Transaction-at-Exchange Operator* and then approved as a remote trading participant after exchange's qualification acquisition examination.

Furthermore, remote trading participants are able to conduct transactions in the same manner as regular trading participants. However, they are not allowed to accept orders entrusted by residents in Japan or provide clearing services at their companies (they are required to designate an agency clearing participant when acquiring exchange trading qualification(s)). In cases where remote trading participants accept orders entrusted from overseas, prior approval from exchange will be necessary.

Permission from relevant authorities concerning remote trading participant system

In order to be authorized pursuant to the FIEA, TSE or OSE is required to obtain approval from overseas authorities (e.g. no-action letter, license).

United States of America

Commodity Futures Trading Commission

  • OSE

OSE received No-Action Letter concerning direct access to the OSE’s market from the U.S. on June 1, 2011.

Hong Kong

Securities and Futures Commission

  • TSE

TSE obtained approval from the Hong Kong regulator concerning Arrowhead on November 8,2010 and ToSTNeT on August 2, 2012.

  • OSE

OSE obtained approval from the Hong Kong regulator concerning J-GATE on December 19,2012.