Nomura Securities has had its Special Entitlements of JGB Market Special Participants (Primary Dealer) suspended for a month as part of actions against unlawful government bond futures trading in March 2021.
The special entitlements will be suspended between 15 October to 14 November, Japan’s Ministry of Finance has announced.
In September, Japan’s Securities and Exchange Surveillance Commission (SESC) stated that Nomura Securities had engaged in layering, a manipulative trading method, in 10-year Japanese Government Bond Futures. It recommended that Nomura Securities receive an administrative monetary penalty for the unlawful trading, totalling 21,760,000 yen (US$ 146,292).
At the time, Nomura said: “We have been working to revise our JGB futures trading operations since these transactions occurred. We will continue to further enhance our compliance framework and internal controls to prevent similar incidents occurring in the future and to regain trust.”
On this latest action, it added: “We take this matter very seriously and apologise to our clients and all other concerned parties for the trouble this has caused.”
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