Sharp Changes in Foreign Exchange Rates and the Economic Environment

「Volatility declined throughout the year, and the market formed a long-term range. In the fourth quarter, however, trading expanded as the company capitalized on the high-volatility environment created by growing concern over intervention, driven by speculation in January that the Federal Reserve Bank of New York was conducting a rate check, increased expectations for political stability following the ruling coalition's landslide victory in the February House of Representatives election, and the US attack on Iran, against the backdrop of increases in customer assets under custody, customer open positions and available margin.」

「Meanwhile, overseas, in addition to rising geopolitical risks, trade friction has intensified against the backdrop of the protectionist trade policies of the Trump administration, and disruptions in supply chains have become apparent. In addition, concerns over recession have spread in some regions, and the outlook for the global economy remains uncertain.」

「Meanwhile, overseas, uncertainty in the global economy remained high, with particular concern over slower growth in the Chinese economy and the impact of geopolitical risks. The outlook therefore remained uncertain.」

「Overseas, the slowdown in economic activity caused by global monetary tightening, a further slowdown in the Chinese economy, and a downturn in overseas economies attributable to geopolitical risks, including the invasion of Ukraine and conflicts in the Middle East, posed risks of weighing on the Japanese economy. The outlook therefore remained uncertain.」

「Concerns remain over the impact on the domestic economy of the further escalation of geopolitical risks accompanying the prolonged situation in Ukraine, the materialization of recession risks in Europe and the United States due to global monetary tightening, and the materialization of further downside risks to the Chinese economy. The outlook therefore remained uncertain.」

「Amid continued global monetary tightening, concerns also remain over downward pressure on the Japanese economy from a downturn in overseas economies, and the outlook remains uncertain.」

「Meanwhile, the prolonged situation in Ukraine and the sharp depreciation of the yen drove up resource prices and prices overall. Signs of a modification to monetary easing policy were also seen, including the expansion of the permitted fluctuation range for long-term interest rates at the Bank of Japan's December Monetary Policy Meeting. In addition, concerns emerged that a downturn in overseas economies caused by global monetary tightening could weigh on the Japanese economy, and the economy remained in an uncertain situation, with the outlook still unclear.」

「Meanwhile, the prolonged situation in Ukraine and the rapid depreciation of the yen have driven up resource prices and prices overall, while concerns have emerged that a downturn in overseas economies caused by global monetary tightening could weigh on the Japanese economy. As a result, the economy remained in an uncertain situation, with the outlook still unclear.」

「Russia's invasion of Ukraine in February 2022 sharply increased uncertainty over the outlook for the global economy, and the Japanese economy also began to experience adverse effects, including constraints on global economic activity and surging import prices.」

「During the consolidated cumulative third quarter period under review, there were no material additions or changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the consolidated cumulative third quarter period under review, there were no material additions or changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the nine-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「During the six-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「During the nine-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「During the six-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「During the three-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「If customers incur losses due to sharp market movements, their funds may decline and their subsequent trading volume may fall significantly. Depending on market trends, customers may also lose their appetite for investment and adopt risk-averse investment behavior, potentially worsening the Group’s profitability and adversely affecting its performance.」