Osaka Exchange (OSE) has imposed a fine of 60 million yen on Nomura Securities for its involvement in Japanese government bond futures transactions conducted in March 2021. The fine follows an investigation into irregularities in the trading activities, marking a significant regulatory action against the firm.

In addition to the fine, the OSE announced that Nomura Securities will face a suspension of its proprietary trading in government bond futures and government bond futures options. This suspension will take effect from December 25, 2024, through December 27, 2024, further disrupting the company’s operations in this segment of the market.

Osaka Exchange Fine to Nomura Securities for March 2021

The Tokyo Stock Exchange, Inc. has also issued a formal reprimand against Nomura Securities in relation to these transactions, signaling heightened scrutiny over the firm’s conduct.

The Japan Financial Services Agency (FSA) had already taken action earlier, issuing an administrative monetary penalty payment order against Nomura Securities on October 30, 2024. This penalty, along with the fines and suspension, is part of a broader effort to address concerns over improper trading practices and ensure compliance with regulatory standards.

Nomura Securities issued a statement in response to the disciplinary actions, expressing regret and commitment to rectifying the situation. “We take this matter very seriously. We apologize to our clients and all other concerned parties for the trouble this has caused,” the company said. “By fully implementing the measures announced on October 31, 2024, we will further enhance our compliance framework and internal controls to prevent similar incidents from occurring in the future and to regain trust.”

The actions against Nomura reflect ongoing regulatory efforts to ensure transparency and integrity within Japan’s financial markets.

These measures reflect Japan’s dedication to maintaining the integrity of its financial system and ensuring that market participants adhere to the highest standards of conduct.

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