(Object)
Article 1. These regulations shall be arrangement for the orders of commodity futures trading and brokerage commissions, etc. in case when a customer uses online trade system (hereinafter referred to as “the System”) of H.S.FUTURES CO., Ltd. (hereinafter referred to as “the Company”), and a customer shall agree to the following Articles at the time the customer uses the System.

(Compliance of Laws, etc.)
Article 2. On using the System, customer and the Company shall comply with Laws and regulations relevant to commodity futures trading and Regulations Governing Brokerage Activity (hereinafter referred to as “the Brokerage Regulations”) stipulated by each Exchange.

(Acknowledgement of Trade)
Article 3. A customer may have the contract with the Company and use the System only after the customer carefully reads and solely understands the Brokerage Regulations, Guide of Orders for Trading on the Commodity Futures Markets and these regulations, writes necessary information on the forms prepared by the Company and applies, and then the Company accepts it and acknowledges.
2. In case if a customer applies for consignment contract from the Company’s web site, the Company shall make a notice to the customer whether or not the application is approved by e-mail after the Company accepts the application, screens it and confirms identity verification.
3. With regard to the approval notice stipulate under preceding Paragraph 2, unless the date of agreement is specified, the date of agreement shall be the date the Company sends the notice.
4. Person who falls under the category of following cannot use the System.
(1) Infant and aged person;
(2) Adult ward, conservator and disabled person; and
(3) Mentally ill, intellectually disable or considered to have cognitive deficit.
5. Even person who does not fall under the category as stipulated under the preceding Paragraph 4, if the Company considers said person inadequate due to said person’s asset condition or understanding, etc., said person cannot use the System.

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(Use of the System)
Article 4. A customer may begin using the System when the Company provides User-ID and Password after the customer deposits Trading Margin into the bank account assigned by the Company, and the Company confirms such deposit, provided, however, that if the customer has not yet deposited the Trading Margin one (1) year after the Company approved the use of the System, the Company shall process as if the application was canceled.If the customer wishes to use the System afterwards, the Company shall ask the customer to apply for this again.
2. Only the customer can use User-ID and Password and said customer cannot give nor lend them to other persons. If the customer gives or lends them to others, this contract shall become invalid and the customer shall take full responsibility for the trades.

(Service of the System)
Article 5. The Company provides a customer with information concerning orders for each brand of commodity futures trading and option trading within the range set by the Company.Contents of service may be changed without giving advanced notice to customers.

(Equipment and Access Line)
Article 6. If a customer intends to use the System, said customer shall prepare the terminal, make contracts for modem, access line and the Internet access provider on said customer’s own responsibility.

(Business Hours)
Article 7. The hours customers can use the System shall be set by the Company.The hours may be changed without advanced notice to customers.

(Type of Trade)
Article 8. The types of trade which a customer can place buy or sell orders through the System shall be as follows.
(1) Physical commodity futures trade;
(2) Index commodity futures trade; and
(3) Cash settlement commodity futures trade.

(Listed Commodities)
Article 9. List of commodities which a customer can trade through the System shall be limited as set by the System, provided, however, that if the Exchange restricts the trade of a listed commodity, such commodity shall not be traded.

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(Volume of Buy and Sell)
Article 10. Volume of buy and sell which a customer can place consignment orders through the System shall be within deposited Trading Margin and within the number of position limit stipulated by the Exchanges.

(Amount of Brokerage Commission)
Article 11. The brokerage commission charged for the orders of customer placed through the System shall be the amount set by the System.
2. In case if a customer does not use specific equipment because of the system failure, etc., and places orders by phone, etc., the brokerage commission for such orders shall be the amount set by the Company.
3. In the event of dispositions executed stipulated under provisions of Article 20, Paragraph 2 of Article 21 and Paragraph 2 of Article 24 of the regulations, the brokerage commission for these trades shall be the amount set by the Company.
4. In all cases of the preceding 3 Paragraphs, brokerage commission shall be collected at the time closing order(s) is settled, and brokerage commissions for both new and closing orders shall be collected.

(Acceptance of Orders)
Article 12. The acceptance of orders shall be the point when the Company receives the contents of orders after the customer inputs the order.
2. For orders placed in Itayose session trade through the System, time limit to place orders shall be the point when the price of relevant contract month is settled, provided, however, that in case orders were sent just before the settlement may remain unsettled as the price has already settled at the point of the acceptance, such orders shall be carried on to the next session within the expiration time set by the customer.
3. For orders placed in continuous session trade, time limit to place orders shall be the close of the session, provided, however, that if orders were sent just before the closing and were rejected at the Exchange as the session has already closed, such orders shall be canceled.

(Period of Validity of Orders)
Article 13. Period of validity of an order placed by a customer through the System shall be within the time range from the acceptance of the order by the Company to the session time in the Exchanges and from starting time set by the customer until expiration time set by the customer (maximum of five business days from current day.)

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(Cancellation and Modification of Orders)
Article 14. An order placed by a customer through the System can be canceled or modified only if it is not settled yet.
2.In case of modification, the order subject to the modification shall be first cancelled through the System and then new order shall be input.

(Execution of Orders and Restrictions)
Article 15.Orders placed by a customer through the System shall be executed from the starting time set by the customer within the time range from the acceptance of the order by the Company to the session time in the Exchange.
2.The Company shall bear no responsibility for the settled order mistakenly placed by the customer.
3.The Company shall not execute orders which fall under one of the following categories.Also, the Company shall bear no responsibility for any loss of a customer resulted from such of non-executed orders.
(1) In case of deficiency of Trading Margin in a customer’s account (except for offsetting orders);
(2) In case where a limit price placed by a customer shall exceed the maximum price fluctuation set by the Exchange.
(3) In case where a customer’s order is against the Laws and regulations, and the Company considers it not appropriate.
(4) In case of placing new order at the time opening contract price is settled on the last trading day for the current contract month or at the last session of the last trading day for the current contract month.

(Inquiry of Orders)
Article 16. Inquiry for trade details and result of orders placed by a customer through the System shall be done through the System.
2. When order through the System is settled, issuance of Order Recap Sheet shall be omitted as stipulated under Paragraph 4 of Article 19 of the Brokerage Regulations.
3. Issuance of Order Recap Sheet shall also be omitted for the disposition of the trade stipulated under provisions of Article 20, Paragraph 2 of Article 21 and Paragraph 2 of Article 24.

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(Pledge or Deposit of Trading Margin)
Article 17. When a customer intends to trade with the Company, the customer shall deposit an amount of Trading Margin stipulated under Paragraph 1 of Article 7 of the Brokerage Regulations to the bank account assigned by the Company.
2. Commissions charged for the above mentioned transaction of asset shall be paid by the customer.

(Marginable Securities)
Article 18. In case if a customer pledges or deposits securities as Trading Margin, the customer shall deposit securities stipulated under Paragraphs 2 and 3 of Article 9 of the Brokerage Regulations with forms stipulated under the Exceptional Clause in Paragraph 1 of Article 31 of the Brokerage Regulations.
2. Pledge or deposit of securities stipulated under provisions of the preceding Paragraph 1 shall be sent by registered mail and fees shall be paid by the customer.

(Return of Trading Margin and Securities)
Article 19. In case if a customer desires to refund all or part of Excess Fund, the customer shall request such through “Withdrawal” or “Request for Withdrawal of Substitutes,” the Company shall make remittance to the bank account assigned by the customer or send by registered mail in accordance with Article 12 of the Brokerage Regulations.
2. Bank transfer fee and postage for securities shall be paid by the Company.
3.After the Company accepted “Withdrawal,” and in case if the amount of Excess Fund becomes less than the amount of withdrawal request at the time of such withdrawal, the amount of withdrawal request shall be limited or such withdrawal may be suspended.

(Margin Call and Disposition)
Article 20. In case the Company makes a margin call to a customer because of deficiency in Trading Margin, if the Company cannot affirm that the customer deposits more than or equal to the amount claimed or that the customer liquidates positions worth the deficiency until 12:00 noon of the next business day following the day of the margin call, the customer’s positions equivalent to the value of the amount claimed shall be disposed.

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(Disposition of Positions Held on the Last Trading Day)
Article 21. The Systems shall not settle trade by delivery as stipulated under Paragraph 1 of Article 13 of the Brokerage Regulations.
2. Positions remain unsettled in the current contract month by the last trading day shall be disposed at the first settlement price or at the last session of the last trading day.

(Cancellation of Order due to the Deficiency in Trading Margin)
Article 22. Depending upon a customer’s new order within the validity of period stipulated under Article 13 of the regulations, deficiency may arise due to Extraordinary Additional Trading Margin, Spot Month Additional Trading Margin and changes in Initial Trading Margin which shall be implemented from the day the Exchanges set or devaluation of appraisal value.In such case, all or part of the order shall be cancelled.

(Request for the Balance)
Article 23. In case if Net Loss remains without any positions or collateral as a result of the settlement stipulated under Article 15 of the Brokerage Regulations, the Company shall charge the customer for the amount equal to the Net Loss.The Customer shall make a remittance to the bank account assigned the Company by the date and time set by the Company.
2. In case where a customer deposits only the Substitute Securities or Substitute Securities and cash for a part of the margin, and all of the Net Loss cannot be transferred, the customer shall settle obligation by depositing full amount or selling the securities.
3. With regard to the preceding two (2) Paragraphs, if the Company cannot affirm the deposit by the date and time set by the Company, the customer shall pay 6% of annual interest rate depending upon the length of the period counting from the next day of such specified day to the deposited day as delayed damages.

(Contact in Emergency)
Article 24. At the emergency on trading, a customer shall contact by message in the System screen, by electronic mail, by telegram or by phone.
2. On the measure taken stipulated under the provisions of Article 24 of the Brokerage Regulations, if customer’s positions are disposed, the Company shall make notice to the customer by the screen of the System or by phone, etc. without delay.On the measure taken stipulated under the provisions of Paragraphs 1, 2 and 3 of Article 26 of the Brokerage Regulations, if customer’s positions are disposed, the Company shall make notice to the customer by the screen of the System or by phone, etc. before the disposition.
3. At the extreme emergency, a customer shall contact International Department of the Company.

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(System Failure)
Article 25. In the event that system failure occurs, if it is possible by the Company to accept orders, open position inquiries, etc., such orders and inquiries shall be accepted by phone, etc.
2. If a customer’s personal computer has failures, the problem shall be removed by the customer’s own responsibility.

(End of Use of the System)
Article 26. In the cases applicable to one of the following, a customer shall end using the System.
(1) In case a customer requests ending the use of the System;
(2) In case a customer violates this regulations or the Brokerage Regulations;
(3) In case the Company abolishes the System; and
(4) In case the total margin deposited becomes less than 100,000 yen and the customer has not been trading for more than 3 months.
2. Even the case does not fall under the categories above, if the Company considers the customer’s use to be inadequate, the use of the customer shall be stopped.

(Notification and Change of Customer Information)
Article 27. If there are any changes in items of the documents relevant to the contract for the System, customer should report it in specific forms or through the System without delay.The Company shall bear no responsibility for any loss resulting from the delay.

(Disclaimer)
Article 28. The Company shall bear no responsibility for the loss of customer when the loss results from the incidents below.
(1) The loss results from the impossibility of ordering, etc. because of the failures of communication device, access line, computer of the Company, etc;
(2) The loss results from the fact that a customer cannot use his personal computer for its failure;
(3) The loss results from the fact that person other than a customer uses the customer’s User-ID and Password and trade through the System;
(4) The loss results from failure to send email to the address which a customer registered, and a customer fails to check the information in the System;
(5) The loss results from disturbance, defection and lack of processing capacity of the Exchange and/or relevant financial institution,
(6) The loss results from failure to provide the Company’s service due to natural disaster, and the loss caused by it; and
(7) The loss results from the cause other than above which the Company shall bear no responsibility.

(Change in the Contract Detail)
Article 29. A customer should acknowledge that the regulations may be modified if necessary, by modifications of Laws and by orders from relevant ministries, etc.In such cases, the Company shall make notice to a customer without delay.

(Others)
Article 30. In case of matters not stipulated in this regulations or any questions arose from the fulfillment of the regulations, both parties shall faithfully discuss the matters and work toward solutions together.
2. Judicial dispute between the Company and a customer shall be held at a court having jurisdiction over plaintiff’s address.

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