Four executives of SMBC Nikko Securities, a major securities company, were arrested on suspicion of market manipulation, and stocks from the department in charge of major shareholders so that the stock price of the stock that the major shareholders want to sell does not fall below a certain level Another department that buys and sells stocks was informed of the desired stock price, and it was found by interviewing the people concerned that there was a suspicion that they had bought a large amount of these stocks.



The Tokyo District Public Prosecutor's Office is expected to proceed with the elucidation of the actual situation, assuming that the fraud was systematically committed with the involvement of multiple departments.

Four people, including Trevor Hill (51), the head of the equity division of SMBC Nikko Securities, and Alexander Avacants (44), the deputy head of the equity division, have five specific stocks in the year leading up to November. Was arrested by the Tokyo District Public Prosecutor's Office on the 4th on suspicion of market manipulation in violation of the Financial Instruments and Exchange Act for conducting fraudulent transactions in order to prevent the stock price from falling.



According to the people concerned, the problem this time was a transaction called "block offer" that buys shares held by major shareholders in bulk and resells them to investors without going through the market, and Hill is the head of the transaction. There is a suspicion that the department that buys and sells stocks with the own funds of the securities company in the department bought a large amount of a specific stock and illegally maintained the stock price.



There is also a suspicion that another department in charge of major shareholders has given this department an estimate of the stock price desired by major shareholders.



It is prohibited by law for securities companies to buy or sell stocks with their own funds based on information on the trends of stock trading by customers.



The Tokyo District Public Prosecutors Office and the Securities and Exchange Surveillance Commission are expected to clarify the actual situation of the internal information management system, considering that the fraud was systematically committed with the involvement of multiple departments.



According to people familiar with the matter, Hill and his colleagues have denied the illegality of the transaction to the investigation by the Special Investigation Department.