Osaka Securities Exchange To Implement Market Maker Program for Equity Options

1. Objective

Osaka Securities Exchange Co., Ltd. (OSE) will implement “Market Maker Program” for Equity Options in order to increase market liquidity, which will give every class of investor a smoother and better trading opportunity.

2. Program Overview

i) Obligation
- Equity Options Market Makers will be required to constantly provide both bid and offer quotes for the issues they are appointed to, except in case of circumstances beyond their control, such as a fast market. OSE will allocate Market Makers for each issue of Equity Options based on their prior applications.

ii) Incentive
- Trades in Equity Options done by Transaction Participants assigned as Equity Options Market Makers will be exempt from calculation in trading fee.

iii) Application, Appointment, and Other Policy;
- In response to an application from a Transaction Participant, OSE will appoint such Transaction Participant as an Equity Options Market Maker.
- In the event OSE recognizes that an Equity Options Market Maker fails to perform its obligations described in the above i), OSE may eliminate such Market Maker from its appointment.

3. Target Time Frame for Implementation
- Planned to be effective on April 1, 2007.