TSE Imposes Penalties on SMBC Nikko over Market Manipulation


Tokyo, Dec. 20 (Jiji Press)--The Tokyo Stock Exchange said Tuesday that it has ordered SMBC Nikko Securities Inc. to suspend proprietary transactions of securities for five days from Jan. 16 next year and pay 300 million yen, as penalties over a stock price manipulation case.

The TSE imposed the longest suspension and the biggest penalty money ever, in view of the impact the misconduct had on market reliability.

The TSE also instructed the brokerage unit of Sumitomo Mitsui Financial Group Inc. <8316> to submit a business improvement report.

The Osaka Exchange, meanwhile, reprimanded SMBC Nikko.

In 2019 to 2021, SMBC Nikko is believed to have used the company's own funds to illegally shore up the prices of 10 stocks that were subject to so-called block offer trades, in which brokerage houses usually buy large amounts of shares from major shareholders and sell them to individual investors in off-hours trading.

[Copyright The Jiji Press, Ltd.]

Jiji Press