50 brokerages to hold emergency meeting on insider trading

Kyodo

The Japan Securities Dealers Association said Monday it will convene an emergency meeting of about 50 brokerages Friday to address insider trading incidents that have sullied the reputations of the nation’s top securities firms.

The meeting — the first of its kind to be jointly organized by the JSDA and the Tokyo Stock Exchange — is aimed at restoring trust in the industry by prompting securities firms to make all-out efforts, the association said.

At the meeting, to be held at the problem-plagued stock exchange, the organizers will also ask brokerages to investigate whether confidential information is being appropriately handled, it said.

The meeting was prompted by insider trading scandals earlier this year involving sensitive client information leaked by Nomura Securities Co., the nation’s biggest brokerage, and Daiwa Securities Capital Markets Co. A former corporate officer at SMBC Nikko Securities Inc. has been indicted over a similar scandal.