Article 60-3Requirement to Refuse Permission for On-Exchange Transaction Services

一the applicant for permission falls under any of the following:

イit is not a corporation of the same type as a company with board of directors;

ロit has not obtained registration, etc. in the state where its head office is located or in any state in which its on-exchange transaction offices are located;

ハit has not continuously conducted business that involves the same type of transactions as the on-exchange transaction in any of its on-exchange transaction offices, for at least the period specified by Cabinet Order (unless this falls under a case specified by Cabinet Order);

ニnone of its on-exchange transaction offices is the member of a foreign financial instruments trading market operator (limited one that has obtained the same kind of license as the license referred to in Article 80, paragraph (1), or a permission or other administrative disposition similar to this, in the relevant state; hereinafter the same applies in item (iii)) in a state where those on-exchange transaction offices are located;

ホit is a corporation whose stated capital as provided for in paragraph (1), item (ii) of the preceding Article is less than the amount that is specified by Cabinet Order as being necessary and appropriate in the public interest or for the protection of investors;

ヘit is a corporation whose net assets are less than the amount prescribed in (e);

トit is a person who has had the registration referred to in Article 29 or Article 33-2 rescinded pursuant to the provisions of Article 52, paragraph (1) or Article 52-2, paragraph (1); has had the permission referred to in Article 60, paragraph (1) rescinded pursuant to the provisions of Article 60-8, paragraph (1); has had the permission under Article 60-14, paragraph (1) rescinded under the provisions of Article 60-8, paragraph (1) as applied mutatis mutandis pursuant to Article 60-14, paragraph (2); has had the registration referred to in Article 66 rescinded pursuant to the provisions of Article 66-20, paragraph (1); has had the registration referred to in Article 66-27 rescinded pursuant to the provisions of Article 66-42, paragraph (1); has had the registration referred to in Article 66-50 rescinded pursuant to the provisions of Article 66-63, paragraph (1); or has had the registration referred to in Article 66-71 rescinded pursuant to the provisions of Article 66-85, paragraph (1); or has had the registration referred to in Article 12 of the Act on the Provision of Financial Services and the Development of the Accessible Environment Thereto (limited to the registration related to the type of securities, etc. intermediary business operations; the same applies in (g)) rescinded pursuant to the provisions of Article 38, paragraph (1) of that Act (excluding items (ii), (iii), and (v)); or a person who has had a registration of the same kind as the registration referred to in Article 29, Article 66, Article 66-27, Article 66-50, or Article 66-71 or the registration referred to in Article 12 of the Act on the Provision of Financial Services and the Development of the Accessible Environment Thereto obtained in the country where its head office or an on-exchange transaction office is located (including permission or any other administrative disposition similar to the registration) rescinded pursuant to a foreign law or regulation that is equivalent to this Act or the Act on the Provision of Financial Services and the Development of the Accessible Environment Thereto; for whom five years have not passed since the date of rescission;

チit is a person who has been sentenced to a fine (including an equivalent sentence under foreign laws and regulations) for violating the provisions of any of the Acts prescribed in Article 59-4, paragraph (1), item (ii) or for violating the provisions of a foreign law or regulation that is equivalent to any of those laws, 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;

リits other business is found to be contrary to the public interest;

ヌit is a corporation whose officer, representative in the country where the on-exchange transaction office is located, or domestic representative falls under any of Article 29-4, paragraph (1), item (ii), (a) through (i); or

ルit does not have the sufficient personnel structure to perform on-exchange transaction services in an appropriate manner;

三the foreign financial instruments trading market operator of which the on-exchange transaction office of the applicant for permission is a member and the financial instruments exchange in which the applicant for permission would become a trading participant have not concluded any agreement concerning the provision of information, and no other measures are in place for the financial instruments exchange to exercise the authority accorded to it under this Act, an order issued based on this Act, or its articles of incorporation or other rules; or

四the written application for permission or an accompanying document includes a false statement or lacks a statement of material fact.