1. - 1 - Financial Futures in TFX (Euroyen Futures) Presenter: Shozo Ohta Senior Managing Director Tokyo Financial Exchange Inc. August 10th, 2005

2. - 2 - PART 1. Historical Volumes of Euroyen 1. Euroyen Trading Volume (from launch to present) (Contracts) March 19, 2001 quantitative monetary loosing policy begins Feb. 9, 1999 zero-interest rate policy begins (overnight call rate)

3. - 3 - 2. Euroyen volume vs loan assets market (held by the domestic banking sector) PART 1. Historical Volumes of Euroyen According to declines in loan assets, Euroyen volumes are decreasing. (Contracts) (yen) Euroyen Loan asset (in billions)

4. - 4 - (%) (CPI) (industrial) (GDP) 1. The Changing Rates of Indices of Industrial Production, CPI, and real GDP PART 2. Signs of Recovery Indices of Industrial Production

5. - 5 - -June 2, 2005, allow balance of current account to break minimum target (30 trillion yen) of quantitative monetary loosing policy. Real GDPDomestic CGPICPI (except Fresh Foods) FY 2005 end+1.2 ~ +1.6+0.8 ~ +1.0-0.1 ~ +0.1 Previous Forecast+2.2 ~ +2.6+0.2 ~ +0.5-0.1 ~ +0.2 FY 2006 end+1.3 ~ +1.7+0.2 ~ +0.5+0.2 ~ +0.4 PART 2. Signs of Recovery Economic and Price Forecasts by the Policy Board of BOJ “Breaking the current account minimum target is the first step towards interest rate normalization. The quantitative monetary loosing policy can be lifted in a year.” “Now that the financial crisis has passed, we should lower our current account target.” “The economy is at the dawn of exiting the level- off stage.” by Atsushi Mizuno (Policy Board Member)by Toshikatsu Fukuma (Policy Board Member) Toshihiko Fukui (BOJ Governor) 2. Signs of Policy Change by Bank of JAPAN (%)

6. - 6 - 3. Recent Euroyen Volumes (monthly) PART 2. Signs of Recovery (Contracts)

7. - 7 - PART 3. Future Potential 1. Japanese Government Bond (Balance) vs household assets (yen) (in trillions) (yen) (in trillions) ~Mounting Magma in Japanese Financial Market~

8. - 8 - Euroyen paralyzed by ultra easy monetary policy, while global trend of STIR futures is strikingly on the upward. PART 3. Future Potential More than 8 times in 10 years! More than 4 times in 5 years! Quantitative monetary loosing policy begins JAPAN: Zero-interest rate policy begins Global Uptrend potential 2. Trend of major Short-term Interest Rate futures

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