Nomura Group: Trading with Privileged Information

Author :

Dr Viola Makin and Chijioke Oji

Pages :

16

Product Type :

Case

Reference # :

WBS-2013-12

Teaching Note :

not available

Institute:

Wits Business School, University of the Witwatersrand

Setting:

Japan

Year:

2013

Keywords:

Banking, Ethics, Finance

Summary/Abstract:

In late March 2012, the Securities Exchange and Surveillance Commission (SESC), the investigative unit of the Japanese Financial Services Authority (FSA), confirmed that Nomura Securities Co., Ltd (NSC) – a subsidiary of Nomura Holdings, Inc. – had been involved in insider trading. On at least three occasions, before official announcements for share issues were made, employees at NSC leaked confidential information on securities offerings that the firm underwrote, with the aim of stimulating market demand for the shares. While trying to repair its tarnished reputation, the company faced hefty fines from the Japanese financial regulators.