Permission from Overseas Relevant Authorities concerning overseas investor

Permission from Overseas Relevant Authorities concerning overseas investor

United States of America

U.S. Commodity Futures Trading Commission

OSE received No-Action Letter, etc. concerning offer and sale of futures contracts to U.S. investors as follows.

Date Name of Contract Status
Jan. 16, 1992 Nikkei Stock Average Futures Contract No-Action Letter Received
Jan. 16, 1992* TOPIX Futures Contract
Mar. 16, 2005 Russell/Nomura Prime Index Futures Contract
Jul. 10, 2006 Nikkei 225 mini Contract
Nov. 9, 2009* Mini TOPIX Futures Contract
TOPIX Core 30 Futures Contract
TSE REIT Index Futures Contract
Mar. 10, 2012 Nikkei Stock Average Volatility Index Futures Contract Certified
Jun. 14, 2012 Dow Jones Industrial Average Futures Contract
Oct. 20, 2014 JPX-Nikkei Index 400 Futures Contract
Jul. 11, 2016 TSE Mothers Index Futures Contract

  • The No-Action Letter was received by TSE.

U.S. Securities and Exchange Commission

OSE has relied on SEC Class Relief No-Action Letter dated July 1, 2013 since March 24, 2014. Please note the conditions imposed by the SEC will apply when Trading Participants are entrusted by customers located in the U.S. For detail, please refer to “Options Trading by U.S. Investors”

Taiwan

The following contracts were approved as tradable products for Taiwanese Investors from Financial Supervisory Commission, Executive Yuan, R.O.C.

  • Nikkei Stock Average Futures Contract
  • Nikkei Stock Average Options Contract
  • Nikkei 225 mini Contract
  • 10-year JGB Futures Contract
  • Options Contract on 10-year JGB Futures
  • TOPIX Futures Contract
  • Mini TOPIX Futures Contract
  • TOPIX Options Contract
  • JPX-Nikkei Index 400 Futures Contract
  • TSE Mothers Index Futures Contract
  • Gold Standard Futures Contract*
  • Gold Mini Futures Contract*
  • Gold Rolling-Spot Futures Contract*
  • Silver Futures Contract*
  • Platinum Standard Futures Contract*
  • Platinum Mini Futures Contract*
  • Platinum Rolling-Spot Futures Contract*
  • Palladium Futures Contract*
  • RSS3 Rubber Futures Contract*
  • Soybean Futures Contract*
  • Azuki (Red Bean) Futures Contract*
  • Corn Futures Contract*
  • Transferred products from Tokyo Commodity Exchange

Options Trading by U.S. Investors

Regarding the trading of certain equity and index options by investors who are located in the United States, the U.S. Securities and Exchange Commission ("SEC") imposes the following conditions. Please refer to the SEC Class Relief No-Action Letter dated July 1, 2013 ("Class Relief") for complete information. All capitalized terms not otherwise defined herein have the same meaning as set forth in the SEC Class Relief.

Class Relief icon-pdf
(note)
  • ・Trading by investors located in the U.S. is currently limited to options on equity securities of Japanese issuers and options based upon broad-based, widely recognized indices on Japanese securities, currently including the Nikkei Stock Average, the TOPIX and potentially other such indices that may be introduced in the future. Osaka Exchange, Inc. ("OSE") will make an announcement if and when it confirms a change in the availability of other types of options, including options based on Japanese Exchange Traded Funds and options based on Japanese Real Estate Investment Trusts, which cannot be traded by U.S. investors as of the current time.

  • Trading Participants may execute options trades placed by a person located in the U.S. only if such person is an “Eligible Broker-Dealer” or an “Eligible Institution” who satisfies the following conditions:
    • To be a "qualified institutional buyer" under Rule 144A(a)(1) of the U.S. Securities Act of 1933 ("Securities Act") or an international entity excluded from the definition of "U.S. person" under Regulations S Rule 902(k)(2)(vi) of the Securities Act, and
    • To have prior actual experience with options traded in the U.S. options market and, therefore, to have received the disclosure document for U.S. standardized options prepared by the Options Clearing Corporation and the U.S. options exchanges, "Characteristics and Risks of Standardized Options," as called for by Rule 9b-1 under the Securities Exchange Act of 1934 ("Securities Exchange Act").

(note)
  • ・The SEC Class Relief requires that a Trading Participant who is not a registered U.S. broker-dealer must deal with an eligible U.S. institution only through a U.S. registered broker-dealer, as provided in Rule 15a-6 of the Securities Exchange Act.
    Japanese broker-dealers electing to deal with U.S. investors may be asked to provide to the SEC information, documents, testimony and assistance in taking the evidence of persons that relate to transactions pursuant to Rule 15a-6(a)(3) under the Securities Exchange Act.

  • Trading Participants shall confirm the following before executing options trades placed by customers who are located in the U.S.:
    • A U.S. customer shall be an Eligible Broker-Dealer or an Eligible Institution, as defined above.
    • A U.S. customer shall trade options for any one of the following accounts:
      • Account of the customer's own
      • Account of another Eligible Broker-Dealer or Eligible Institution
      • A managed account of a non-U.S. person (one who is excluded from the  definition of "U.S. person" specified under Rule 902(k)(2)(i) of Regulation S under the Securities Act)

  • In order to confirm the items in the preceding clauses, Trading Participants shall require a customer who is located in the U.S. to submit a "Representation of Eligibility" form produced by OSE before commencing options trading. The Representation of Eligibility shall include the necessary descriptions designated by OSE and a signature by an appropriate officer of the customer as specified therein. It shall also require the customer to notify the Trading Participant of any change in the representations made therein prior to placing any future options order.

(note)
  • ・The Trading Participant shall take the necessary steps to ensure that a customer retains its eligibility to trade options following the initial demonstration of eligibility. If there is doubt as to whether a customer remains eligible, the Trading Participant shall obtain a new Representation of Eligibility from the customer or refuse to execute options trades, unless eligibility can be verified. Customers agree to furnish OSE with written documentation through the OSE Trading Participant evidencing the representations to support their eligibility upon reasonable request whenever it becomes necessary to address questions or respond to inquiries.
    If an Eligible Broker-Dealer/Eligible Institution is acting on behalf of another Eligible Broker-Dealer/Eligible Institution that is not a managed account, it must obtain from the other Eligible Broker-Dealer/Eligible Institution a representation that it satisfies the above eligibility conditions and provide that representation to the Trading Participant upon demand.
 

  • Trading Participants shall retain the Representation of Eligibility provided by the U.S. customer in accordance with the preceding clause.

 

For queries concerning Eligible Broker-Dealers or Eligible Institutions, please contact OSE.
(Please use "Inquiries concerning Derivatives" form on Contact us page.)

The following materials are available online:

 
Representation of Eligibility icon-pdf icon-doc

Trading Participant Regulations
Clearing and Settlement Regulations
Rules on Margins, etc. for Futures and Option Contracts
List of OSE Trading Participants
Annual Report of Japan Exchange Group, Inc.