Under the Financial Instruments and Exchange Act, banks and other financial institutions are in principle prohibited from conducting securities-related business1. As exceptions, they may conduct certain acts, such as executing customers' written orders and handling certain securities such as government bonds2. A financial institution that conducts such acts, or conducts derivatives transactions other than securities-related ones, as a business must be registered with the Prime Minister2. For derivatives transactions other than securities-related ones, registration as a financial instruments business operator is not required3.
Registered financial institution
- Japanese
- 登録金融機関
- Last reviewed
- October 3, 2026
This is a draft, shown for review before publication.
A registered financial institution is a bank, cooperative financial institution, or other financial institution specified by Cabinet Order that has registered under the Financial Instruments and Exchange Act. For derivatives transactions, it registers in order to conduct derivatives transactions that are not related to securities as a business.
Related terms
Explained in detail
Pages that use this term
- Exchange-Traded vs OTC Derivatives
- Product Explanations and Pre-Contract Disclosures
- Suitability Checks
- Trade Confirmations
- Mark-to-Market Reporting to Clients
- Intragroup Back-to-Back Trades
- Taxation of Derivative Gains and Losses
- Complaints and Dispute Resolution (FINMAC)
- The Financial Services Provision Act
- Supervisory Guidelines of the Financial Services Agency
- Mandatory Clearing
- Margin Requirements for Uncleared Derivatives
- Trade Reporting
- Electronic Trading Platform Mandate
- Suitability and the Duty to Explain
- Record keeping