Standards for Acquisition/Maintenance of Clearing Qualifications
  1. Provide user-oriented high quality services and expand the segments of participants
    1. The applicant maintains a sound structure of corporate management.
    2. The applicant meets the following standards with respect to its financial standing. *1
      Classification of
      Qualification      		 Principal Clearing Qualification Agency Clearing Qualification *2
      Capital Not less than 300 million yen Not less than 300 million yen
      Net Property / Net Assets Not less than 5 billion yen Not less than 20 billion yen
      Net Capital Requirement Ratio (Financial Instruments Firms, etc.) Not less than 200% Not less than 200%
      Non-Consolidated / Consolidated Capital Adequacy Ratio (Banks, etc.) Not less than 8%(4%) *3 Not less than 8%(4%) *3
      Solvency Margin Ratio (Insurance Companies) Not less than 400% Not less than 400%

      *1 “Standards Conditional on Guarantee of Parent Company” and “Standards Related to Brokers” have been stipulated separately from the above.

      *2 Holders of agency clearing qualifications are able to act as agencies for clearing securities, etc.
      Only financial instruments firms and registered financial institutions are eligible to apply for agency clearing qualifications.

      *3 Figures in parentheses are applied for banks, etc., that do not have any overseas operating bases. The same applies hereinafter.

    3. The applicant is equipped with a proper business execution framework.
    4. By the acquisition of the qualifications, the applicant is expected either to become a shareholder of our company or to be part of a corporate group *that is a shareholder of JGBCC.

      * Corporate group has the same meaning stipulated by the Cabinet Office Ordinance on Disclosure of Corporate Information, etc., Article 1-23 (including a group that JBGCC recognizes as conforming to the same meaning).

  2. Standards for Maintenance of Clearing Qualifications
    1. The clearing participant meets the following standards with respect to its financial standing. *1*2*3
      Classification of Qualification Principal Clearing Qualification Agency Clearing Qualification
      Capital Not less than 300 million yen Not less than 300 million yen
      Net Property/Net Assets Not less than 1 billion yen Not less than 20 billion yen
      Net Capital Requirement Ratio (Financial Instruments Firms, etc.) Not less than 140% Not less than 200%
      Non-Consolidated/Consolidated　Capital Adequacy Ratio (Banks, etc.) Not less than 8%(4%) Not less than 8%(4%)
      Solvency Margin Ratio (Insurance Companies) Not less than 200% Not less than 400%

      *1 In the case of non-attainment of the above standards, the assumption of debts of the participants may be terminated either wholly or in part.

      *2 “Standards Conditional on Guarantee of Parent Company” and “Standards Related to Brokers” have been stipulated separately from the above.

      *3 The appropriateness of the management structure as well as the business execution framework is required in addition to the financial requirements.