A CEO Now Apologizes For Illegal Bond Market Manipulation

A CEO now apologizes for illegal bond market manipulation that took place in the Japanese futures market in 2021.

Kentaro Okuda, the CEO of Nomura Holdings Inc., publicly apologized during his first appearance following allegations that an employee manipulated the bond futures market.

Last week, Japan’s financial regulator suggested a fine for Nomura’s domestic securities unit for allegedly manipulating the prices of Japanese government bond futures in 2021.

As a result, Toyota Finance Corp. and several other companies have since decided to exclude Japan’s largest brokerage from their debt underwriting deals, according to Bloomberg.

“I would like to apologize for the trouble caused,” Okuda stated at a Nikkei financial forum in Tokyo on Wednesday.

This apology comes as Nomura seeks to take advantage of a resurgence in the Japanese bond market, spurred by changes in the country’s monetary policy.

The Securities and Exchange Surveillance Commission has recommended that the Financial Services Agency impose a fine of ¥21.8 million (approximately $152,000) on Nomura after discovering that a dealer profited from placing large orders for Japanese government bond (JGB) futures without the intention of actually buying or selling all of them.

The FSA typically enforces such penalties a few weeks later.

In a statement released last week, Nomura indicated that it has been working to improve its JGB futures trading operations since the incident and has committed to enhancing internal controls to prevent future occurrences.

In recent years, other securities firms, including those affiliated with Citigroup Inc. and Mitsubishi UFJ Financial Group Inc., have faced penalties for manipulating JGB futures prices.

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Also Read: TD Bank Now Gets Caught With Illegal Market Manipulation

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