Two brokerages under Mizuho Financial Group Inc. merged Friday to form Mizuho Securities Co.
“We hope to reap quick benefits from the merger by exploiting both firms’ customer bases and expertise on product development,” Hiroshi Motoyama, president of the merged firm, said.
The premerger Mizuho Securities handled corporate transactions, while Mizuho Investors Securities Co. served individual customers. They will gradually integrate their branch networks to enhance efficiency.
While the merged firm is currently a subsidiary of Mizuho Corporate Bank, it will be directly managed by Mizuho Financial Group by September. The new entity aims to cement ties with the commercial and trust banking arms of the group.
Mizuho unit fined in U.S.
The U.S. Commodity Futures Trading Commission said Thursday it has imposed a $175,000 civil monetary penalty on Mizuho Securities USA Inc. for failing to notify the commission of fund deficiencies in a timely manner.
“Mizuho became aware of its deficiency in secured funds on Oct. 11, 2011, and cured it that same day. However, Mizuho failed to provide notice of the deficiencies on Oct. 7 and 10 to the CFTC until Oct. 12, 2011,” the CFTC said. The funds aim to protect clients trading on foreign exchanges.