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Osaka Securities Exchange: Financial Results For The Second Quarter Of The Fiscal Year Ending March 31, 2012

Date 25/10/2011

In Japan's equity market during the current second quarter (cumulative), a price of the Nikkei Stock Average remained between 10,100-yen level and 8,300-yen level.

Trading value and volume of total derivatives fell by 24.8% and 15.9% compared with the same period last year. It is mainly because a price of the Nikkei Stock Average remained in a smaller range comparing with the same period last year (between 11,300-yen level and 8,800-yen level). As for Nikkei 225 Futures, Nikkei 225 mini, and Nikkei 225 Options, which are our major products, trading value and volume of three of them fell below those of the same period last year. On the other hand, as for FX Margin Trading (OSE-FX), both of trading value and volume became 2.5 times larger compared with the same period last year. As for cash trading, trading volume of both 1st/2nd Section and JASDAQ exceeded those of the same period last year, but their trading value fell below those of the same period last year. As a result, as for total cash trading, although trading volume exceeded by 73.4% compared with the same period last year, trading value fell by 6.0% compared with the same period last year.

Operating Revenue for the current second quarter (cumulative total) was 11,381 million yen, an increase by 2.4% compared with the same period last year. This is mainly because Participant Fees received from participants (financial instruments business operators with the trading and/or clearing qualification on markets established by OSE) was 6,568 million yen (an increase by 0.2% compared with the same period last year), Equipment and Information Services Fee was 3,881 million yen (an increase by 11.2% compared with the same period last year), and Listing Fees received from listed companies was 888 million yen (a decrease by 13.5% compared with the same period last year).

Selling, General and Administrative Expenses amounted to 6,922 million yen, a decrease by 1.0% from the same period last year, due to 2,099 million yen of Occupancy Expenses (an increase by 95.2% compared with the same period last year), 1,913 million yen of Operating Expenses (a decrease by 8.6 % compared with the same period last year), 1,620 million yen of Personnel Expense (a decrease by 4.6% compared with the same period last year), and 1,289 million yen of Depreciation Expense (a decrease by 39.3% compared with the same period last year).

As a result, Operating Income amounted to 4,458 million yen, an increase by 8.2% compared with the same period last year, and Ordinary Income amounted to 4,969 million yen, an increase by 6.0% compared with the same period last year. In addition, since Extraordinary Income and tax deductions due to a merger with Jasdaq Securities Exchange, Inc. had been posted during the same period last year, Net Income was decreased by 49.5% compared with the same period lastyear and amounted to 3,071 million yen.

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