In the case where four executives of SMBC Nikko Securities were arrested on suspicion of market manipulation, the alleged fraudulent stock trading was detected as a suspicious transaction by the internal stock trading monitoring system, and it was reported to the vice president. I found out from the interviews with the people concerned.


It is suspected that similar stock transactions have been repeated since then, and it is believed that the Tokyo District Public Prosecutors Office is proceeding with the elucidation of the actual situation, assuming that there was a problem with the internal management system.

Former General Manager of Equity Headquarters of SMBC Nikko Securities, Trevor Hill, and (51) Makoto Yamada, former General Manager of Equity Department, and others (44) were identified during the year leading up to November. Five stocks were arrested by the Tokyo District Public Prosecutor's Office on suspicion of market manipulation in violation of the Financial Instruments and Exchange Act for making fraudulent transactions to prevent stock prices from falling.



According to the people concerned, former manager Yamada seems to have been conducting fraudulent transactions as the head of the equity department that buys and sells stocks with the securities company's own funds, but these transactions are suspicious by the system that monitors internal stock transactions. It was detected as a transaction, and former manager Yamada was pointed out by the "trading management department" in charge of compliance.



The content detected by the system was also reported to the vice president who oversees the equity department, but it is suspected that the alleged fraudulent transaction was not corrected and was repeated.



It seems that the Special Investigation Department and the Securities and Exchange Surveillance Commission are proceeding with the elucidation of the actual situation, considering that there was a problem with the company's internal control system.



The vice president explained to the special investigation department that he did not recognize that the transaction was illegal.



The Special Investigation Department has not disclosed the approval or disapproval of the four arrested executives.