Tokyo Stock Exchange - Emergency Measures For Trading/Clearing Systems Failures Due to Y2K Problems

In the case of futures/options trading through another member, in the event of system failures: In order to prepare for the emergency situations where a member (including a special participant)cannot place orders, due to the system failures caused by Y2K problems, the Tokyo Stock Exchange introduced emergency measures to enable a member without trading access to have alternative order routing capabilities. Under this scheme, a member with system failures can designate another member and place orders through that designated member, with the prior approval of the exchange. In the case of postponement of settlement without board meeting approval in the event of system failures: According to "The Contingency Plan for Y2K" of TSE which was published in July, 1999, TSE may postpone the settlement in the event of failures with TSE clearing system, JASDEC system, and other systems necessary for the TSE settlement. Under the current TSE rules, the postponement of the settlement requires the approval of the board members at special board meeting. This procedure, however, takes time and members (including special participants) and other bodies related to TSE settlement need an immediate decision by TSE for their orderly operations in this kind of system failures. Therefore, the rule is to be amended so that TSE can postpone the settlement without going through this procedure in this kind of system failures.