Nomura Holdings Inc. is facing a ¥21.8 million ($152,000) fine for allegedly manipulating the Japanese government bond futures market. An employee from Nomura’s domestic securities unit is suspected of placing large orders in 2021 without intending to execute them, according to the Securities and Exchange Surveillance Commission (SESC).
While the fine is small, it may damage Nomura’s reputation as it refocuses on Japan for growth in its trading and investment banking operations. Japan’s bond market has seen renewed activity following recent policy changes by the Bank of Japan.
Nomura stated it is taking the matter seriously, though it declined further comment. Previous penalties for bond market manipulation, such as Citigroup’s ¥133 million fine in 2019, have resulted in companies losing underwriting business, a potential risk for Nomura.
Shares of Nomura dropped 1.5% in Tokyo following the news.