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Nomura fined by Japanese regulator for bond market manipulation
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Nomura fined by Japanese regulator for bond market manipulation

Nomura Holdings Inc. was fined 21.8 million yen ($143,000) by Japan’s financial regulator for manipulating the government bond futures market, in a setback for the country’s largest brokerage during a revival of debt trading. .

The Financial Services Agency issued the fine in accordance with a recommendation made last month by the Securities and Exchange Oversight Commission, the agency’s investigative arm.

Nomura said it paid the fine on Thursday and apologized to customers and stakeholders.

“We take this matter very seriously,” the company said in a statement. “We will continue to improve our compliance framework and internal controls to prevent similar incidents from occurring in the future and regain trust.”

The fine, although small, may damage Nomura’s reputation at a time when it is refocusing on Japan as a key growth area for its commercial and investment banking operations. The country’s bond market has come back to life after the Bank of Japan raised interest rates and abandoned a policy of controlling bond yields earlier this year.

An employee of Nomura Securities Co. is suspected of fraudulently moving JGB futures prices in 2021, the SESC said. The trader profited by placing large orders without intending to buy or sell them all, in a practice called layering, the watchdog said.

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