Article 156-20-18Examination Criteria for Authorization

一the collaborating clearing organization, etc. (limited to one other than a financial instruments clearing organization or foreign financial instruments clearing organization; hereinafter the same applies in the following paragraph and the following Article) has obtained the same kind of license as that referred to in Article 156-2 or permission or any other administrative disposition similar to such a license in the state where its head office or principal office is located;

二the provisions of the articles of incorporation and business rules of the collaborating clearing organization, etc., as well as the provisions of the collaboration agreement, conform to laws and regulations; and the provisions of the articles of incorporation and business rules of the applicant for authorization and the collaborating clearing organization, etc., as well as the provisions of the collaboration agreement, are sufficient to allow collaborative financial instruments obligation assumption services and business of the collaborating clearing organization, etc. (limited to business related to collaborative financial instruments obligation assumption services) to be performed properly and reliably;

三the applicant for authorization and the collaborating clearing organization, etc. have a sufficient financial basis to soundly perform collaborative financial instruments obligation assumption services and conduct the business of the collaborating clearing organization, etc. (limited to those related to collaborative financial instruments obligation assumption services) and have good prospects in terms of expected income and expenditures in connection with collaborative financial instruments obligation assumption services;

四in light of their personnel structures, the applicant for authorization and the collaborating clearing organization, etc. have sufficient knowledge and experience to perform collaborative financial instruments obligation assumption services and to conduct the business of the collaborating clearing organization, etc. (limited to business related to collaborative financial instruments obligation assumption services) properly and reliably, and have sufficient social credibility;

五there is an adequately developed structure and system for properly securing collateral to allocate for settling outstanding obligations, for managing highly reliable facilities in order to facilitate such settlement, and for otherwise executing such settlement properly and reliably;

六the articles of incorporation, business rules, or collaboration agreement stipulates that the applicant for authorization will reliably perform the obligations of the other party to a subject transaction by a clearing member that the applicant for authorization bears; and

七it is unlikely that the applicant for authorization's engagement in collaborative financial instruments obligation assumption services will compromise its proper and reliable operation of financial instruments obligation assumption services.

一the collaborating clearing organization, etc. is a person that has not yet had the period specified by Cabinet Order pass since it commenced the same kind of business as financial instruments obligation assumption services in a foreign country based on a foreign law or regulation (unless this falls under a case specified by Cabinet Order);

二the collaborating clearing organization, etc. is a person that has been sentenced to a fine (including an equivalent sentence under foreign laws and regulations) for violating the provisions of this Act or the Act on the Provision of Financial Services and the Development of the Accessible Environment Thereto, or for violating the provisions of a foreign law or regulation that is equivalent to one of these Acts, and five years have not passed since the day on which the person finished serving the sentence or ceased to be subject to its enforcement;

四the collaborating clearing organization, etc. has a person falling under any of the provisions of Article 82, paragraph (2), item (iii), (a) through (f) as an officer;

五the authority responsible for the enforcement of the foreign law or regulation that is equivalent to this Act in the country where the head office or principal office of the collaborating clearing organization, etc. is located has not given the assurance prescribed in Article 189, paragraph (2), item (i) or has anything else that is found to be equivalent to the assurance; or

六the application for authorization or a document or electronic or magnetic record that is required to be attached to it contains a false statement or false record regarding a material particular.