(Bloomberg) — Japan’s Ministry of Finance plans to temporarily exclude Nomura Holdings Inc. from taking part in government debt auctions after the firm admitted to manipulating the bond futures market, according to people familiar with the matter.
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The ministry plans to suspend Nomura from the primary group of Japanese government bond dealers for a month from Oct. 15, the people said, asking not to be identified. An announcement is set to be made later Friday, the people added.
A representative from the finance ministry didn’t immediately respond to a request for comment.
The action is another setback to Nomura after the revelations led several companies including Toyota Finance Corp. to take their bond underwriting business elsewhere.
Nomura admitted to Japan’s financial regulator that an employee manipulated government bond futures by placing large orders without intending to buy or sell all of them, Bloomberg News reported this week. The nation’s securities watchdog had earlier recommended a ¥21.8 million ($147,000) fine against the company for the 2021 breach.
–With assistance from Nao Sano, Takahiko Hyuga and Hideki Suzuki.
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