Japan’s SMBC Nikko, Staff Charged With Market Manipulation
- CEO Kondo will seek to regain trust with improvement measures
- Firm’s Deputy President Toshihiro Sato has also been arrested
The head office of SMBC Nikko Securities Inc., a unit of Sumitomo Mitsui Financial Group Inc., in Tokyo.
Photographer: Toru Hanai/BloombergThis article is for subscribers only.
Tokyo prosecutors charged SMBC Nikko Securities Inc. and five of its staff members with alleged stock market manipulation, as a trading scandal that’s rocked the nation’s financial industry escalated in the Japanese capital.
The prosecutors indicted the brokerage arm of the nation’s second-biggest banking group and the five employees in relation to allegedly propping up the price of certain companies’ shares before SMBC Nikko sold them in what are known as block offers, they said in a statement Thursday.