
JP Morgan Securities Asia receives 15-day suspension of stock index futures
LOSSES & LAWSUITS
According to a statement from the FSA, the Securities and Exchange Surveillance Commission (SESC) conducted an inspection of JP Morgan Securities Asia's Tokyo branch, and found evidence that in November 2004, "conducting the Topix futures transactions on its overseas affiliated company's account, a trader of the branch placed in the TSE market a series of selling orders and purchasing orders at the same index point both by himself and matched them to each other. As a result, the branch conducted cross trades in the Topix futures transactions with no intention to transfer the rights represented by the Topix futures".
The FSA also accused the firm of "acts of making representation of a false statement or a misleading statement on any material matter, in connection with the sale or purchase of, or any other form of transaction in a security" in relation to an real estate securitisation product.
As a result, the regulator suspended stock index futures trades on the firm's own account for 15 days, and business in the real estate finance division for five days. It also demanded improvements in the firms' systems and controls.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
More on Regulation
7 days in 60 seconds
Bank capital, margining and the return of FX
The week on Risk.net, December 12–18
Receive this by email