Financial Instruments and Exchange Act

If the Minister of Finance finds it to be necessary for planning or making policies for financial instruments trading systems related to the system for handling failed financial institutions and financial risk management under the Minister's jurisdiction, the Minister may request the Prime Minister to provide necessary materials and explanations.

If the Minister of Finance finds it to be particularly necessary for planning or making policies for financial instruments trading systems related to the system for handling failed financial institutions and financial risk management under the Minister's jurisdiction, the Minister may, to the extent necessary, request a financial instruments business operator, etc., designated parent company, authorized firm for on-exchange transactions, the business operator authorized to conduct electronic over-the-counter derivatives transactions, etc. business operator, financial instruments intermediary service provider, high-speed trader, authorized financial instruments firms association, certified financial instruments business association (meaning a certified financial instruments business association prescribed in Article 78, paragraph (2); the same applies in Article 194-7, paragraph (2), item (v)), financial instruments exchange, self-regulatory organization under Article 85, paragraph (1), financial instruments exchange holding company, foreign financial instruments exchange, financial instruments clearing organization, foreign financial instruments clearing organization, securities finance company, or other relevant persons to provide materials or explanations or any other cooperation.

Cabinet Order specifies consultations with the Minister of Agriculture, Forestry and Fisheries or the Minister of Economy, Trade and Industry, the notices to these Ministers, and other procedures, if, pursuant to the provisions of this Act, the Prime Minister establishes Cabinet Office Order (limited to those specified by Cabinet Order), issues an order or renders other dispositions (limited to those specified by Cabinet Order), or receives a notification (limited to those specified by Cabinet Order) or an application for registration, for the business of performing the following acts in connection with rights set forth in Article 2, paragraph (2), item (i), (ii), (v), or (vi) which fall under the rights specified by Cabinet Order as those whose purpose is for a person to engage in the commodity investment provided for in Article 2, paragraph (1) of the Act Regulating Business Involving Commodity Investment, or whose purpose is for a person to invest goods with substantial price volatility or goods generating a profit when used that is difficult to estimate, by acquiring them (including producing them), transferring them, using them, or causing them to be used:

purchase and sales, or its intermediation, brokerage, or agency;

public offerings or private placements;

secondary distributions; or

dealings in public offerings or secondary distributions, or dealings in private placements.

If the Prime Minister makes the registration referred to in Article 29 or Article 33-2 or accepts a notification referred to in Article 31, paragraph (1) or Article 33-6, paragraph (1) for a person seeking to perform an act set forth in any of the following items on a regular basis, the Prime Minister is to notify the Minister of Economy, Trade and Industry of the information set forth in Article 29-2, paragraph (1) or Article 33-3, paragraph (1) with regard to that person:

an act set forth in Article 2, paragraph (8), item (vii) (limited to an act involving a right based on a limited partnership agreement for investment prescribed in Article 3, paragraph (1) of the Limited Partnership Act for Investment, which falls under a right referred to in Article 2, paragraph (2), item (v) of this Act (hereinafter referred to as a "right in an investment limited partnership" in this Article)); or

an act set forth in Article 2, paragraph (8), item (xv) (limited to an act involving a right in an investment limited partnership).

If the Prime Minister accepts a notification based on the provisions of Article 63, paragraph (2) in connection with a person that seeks to perform an act set forth in any of the following items on a regular basis, the Prime Minister is to notify the Minister of Economy, Trade and Industry of the particulars set forth in the items of Article 63, paragraph (2) concerning that person:

an act set forth in Article 63, paragraph (1), item (i) (limited to an act involving a right in an investment limited partnership); and

an act set forth in Article 63, paragraph (1), item (ii) (limited to an act involving a right in an investment limited partnership).

If the Prime Minister accepts a notification based on the provisions of Article 63-9, paragraph (1) in connection with a person that seeks to perform an act set forth in one of the following items on a regular basis, the Prime Minister is to notify the Minister of Economy, Trade and Industry of the particulars set forth in the items of that paragraph concerning that person:

an act set forth in Article 63-8, paragraph (1), item (i) (limited to an act involving a right in an investment limited partnership); and

an act set forth in Article 63-8, paragraph (1), item (ii) (limited to an act involving a right in an investment limited partnership).

When the Prime Minister makes the following dispositions, the Prime Minister must consult with and obtain consent from the Minister with jurisdiction over a commodity market (meaning the Ministers specified in the items of Article 354, paragraph (1) of the Commodity Derivatives Transaction Act in accordance with the categories set forth in each of those items; the same applies hereinafter) in advance; provided, however, that, with regard to the dispositions set forth in item (ii), (c) through (e), item (iv), (b), or item (v), (b), when there is an urgent need for the public interest or protection of investors, it is sufficient to notify the Minister with jurisdiction over a commodity market of the outline of the necessary measures in advance:

granting a license under Article 80, paragraph (1) (limited to a license to be granted to a person that seeks to establish a financial instruments market for conducting commodity-related market derivatives transactions);

making dispositions set forth in the following subitems (a) through (f) to a financial instruments exchange:

giving an order under Article 127, paragraph (1) (limited to an order related to commodity or financial indexes (limited the prices of commodities or the figures calculated based on them));

granting the authorization for changes to the operational rules under Article 149, paragraph (1) (limited to the authorization related to the particulars set forth in Article 117, paragraph (1), item (v) (limited the particulars concerning commodity-related market derivatives transactions) or item (viii) (limited to the particulars concerning transfer of commodities related to commodity-related market derivatives transactions) or the particulars concerning the detailed regulations prescribed in paragraph (2) of that Article);

giving an order under Article 152, paragraph (1), item (i) (limited to an order to take necessary measures (limited to the measures for the particulars concerning clearing margins or other particulars specified by Cabinet Order), specified in the articles of incorporation or any other rules for commodity-related market derivatives transactions);

giving an order under Article 152, paragraph (1), item (ii) (limited to an order related to commodity-related market derivatives transactions);

giving an order under Article 153 (limited to an order to change the operational rules concerning the particulars related to clearing margins for commodity market derivatives transactions or other orders specified by Cabinet Order); and

granting the approval under Article 156-19, paragraph (1) (limited to the approval to a person that seeks to conduct financial instruments obligation assumption service in relation to commodity-related market derivatives transactions);

granting a license under Article 156-2 (limited to a license to a person that seeks to conduct financial instruments obligation assumption service in relation to commodity-related market derivatives transactions);

making dispositions set forth in the following sub-items (a) and (b) to a financial instruments clearing organization (excluding a financial instruments clearing organization that conducts commodity transaction debt assumption services, etc.):

granting the authorization to change business rules under Article 156-12 (limited to the authorization related to the particulars set forth in Article 156-7, paragraph (2), item (iv) which concerns particulars concerning transfer of commodities related to commodity-related market derivatives transactions); and

giving an order under Article 156-16 (limited to an order to change business rules on the particulars concerning clearing margins related to commodity-related market derivatives transactions);

making dispositions set forth in the following sub-items (a) and (b) to a financial instruments clearing organization (limited to a financial instruments clearing organization that conducts commodity transaction debt assumption services, etc.):

granting the authorization to change business rules under Article 156-12 (limited to the authorization related to the particulars concerning commodity-related market derivatives transactions); and

giving an order under Article 156-16 (limited to an order to change business rules on the particulars concerning clearing margins related to commodity-related market derivatives transactions).