(Provisional Translation)
September 17, 2004
Financial Services Agency

The administrative action against
Cantor Fitzgerald Shoken Kaisha Ltd., Tokyo Branch

1. Acts of consummating the same sales or purchases in securities by being a broker and at the same time being a principal to such sales or purchases

The Securities and Exchange Surveillance Commission (SESC) conducted the inspection of Cantor Fitzgerald Shoken Kaisha Ltd., Tokyo Branch (''the Branch'' hereafter), and found the following violation of the Securities and Exchange Law (''the Law'' hereafter). The SESC recommended the Commissioner of the Financial Services Agency (FSA) to take a disciplinary action against the Branch on September 10, 2004.

(1)	From February 2002 to December 2003, in the course of business, the Branch executed many sale or purchase orders of securities which the Branch had received from their customers as a broker, by acting as a broker and at the same time as a principal to such sales or purchases for many times.
(2)	The acts above are found to have violated the Article 39 of the Law as applied by the Article 14 (1) of the Law on Foreign Securities Firms.

2. The administrative action against the Branch

On the basis of the above findings, the FSA issued the following business improvement orders to the Branch today.

(1)	Strengthening the internal control system, securing strict compliance by all the directors and staff, taking preventive measures against recurrence of the above-mentioned violation, and clarifying locus of responsibility.
(2)	Submitting a report to the FSA on the implementation of the above measures by October 18, 2004.