4 SMBC Nikko Employees Arrested for Market Manipulation
Tokyo, March 4 (Jiji Press)--Tokyo prosecutors arrested four senior employees at SMBC Nikko Securities Inc. on Friday on suspicion of manipulating stock prices in violation of the financial instruments and exchange law.
Investigators from the Tokyo District Public Prosecutors Office searched the Tokyo headquarters of SMBC Nikko, a unit of Sumitomo Mitsui Financial Group Inc. <8316>, for evidence.
The SMBC Nikko employees are suspected of placing buy orders to evade declines in prices for shares of five publicly traded companies between December 2019 and November 2020.
This involved block offer trading in which shares are bought in off-hours trading for sale to investors.
It is very unusual for a senior employee at a securities house considered to play a role in ensuring the fairness of markets to be arrested for alleged market manipulation.
[Copyright The Jiji Press, Ltd.]