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(Bloomberg) — Nomura Holdings Inc. admitted to Japan’s financial regulator that it had manipulated the government bond futures market, following a probe by the securities watchdog into transactions three years ago.
The country’s largest brokerage submitted a written statement recognizing the violation, according to a notice on the Financial Services Agency’s website. This comes after the Securities and Exchange Surveillance Commission last month recommended a fine for the 2021 transgression.
The admission comes about a week after Nomura’s Chief Executive Officer Kentaro Okuda apologized for what happened. Several firms including Toyota Finance Corp. have excluded the brokerage from deals to underwrite their debt.
The SESC said an employee at the company’s domestic securities unit fraudulently moved JGB futures prices in 2021 by placing large orders without intending to buy or sell all of them. It proposed a ¥21.8 million ($146,000) fine.
The FSA declined to comment on when Nomura had submitted its statement. A spokesperson for Nomura wasn’t immediately able to comment.
Nomura issued a statement after the SESC’s announcement saying it has been working to revise its JGB futures trading operations since the incident. It also pledged to continue to improve internal controls to prevent a recurrence.
–With assistance from Taiga Uranaka.
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