NAGOYA (Kyodo) Globaly Corp. announced Friday it will close its commodity-futures brokerage Sept. 30, following an administrative punishment from the government.
The major commodity-futures brokerage will also terminate sales of commodity investment products and return investors’ deposits.
On June 21, the government ordered the Nagoya-based firm to suspend brokerage operations for 60 business days from June 24 because it refused to pay trading profits to its clients.
It had earlier been ordered to suspend futures-trading operations until June 23 due to its off-the-book reserves taken from customers’ accounts.
On July 15, police raided Globaly offices on suspicion of violating of the commodity exchange law.
Globaly said the administrative punishment and the police raid have seriously affected its credibility and made continuation of its mainstay business difficult.
The withdrawal from the core business is expected to lead to the company being delisted from the Nagoya Stock Exchange.
Globaly said it will continue real-estate brokerage operations and financial services.
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