Japan Market Watchdog Raids SMBC Nikko Securities
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Tokyo, Nov. 2 (Jiji Press)--Japan's Securities and Exchange Surveillance Commission has raided the head office of SMBC Nikko Securities Inc. in Tokyo as part of its investigation into alleged market rigging by some employees of the firm, informed sources said on Tuesday.
The SMBC Nikko Securities employees are suspected of being involved in fraudulent stock transactions on multiple occasions in order to maintain the prices of certain stocks.
The securities market watchdog is currently looking into the matter, with a possibility that it may file a criminal complaint with public prosecutors.
In a statement released on the day, the company admitted that it is under the SESC's investigation, and said it is cooperating with the investigation, while declining to comment further on the matter.
According to the sources, the transactions in question are called block offering, in which securities firms, after receiving lots of sell orders from clients, buy stocks from them during off-hours trading and find buyers later.
[Copyright The Jiji Press, Ltd.]