The Japan Securities Dealers Association demanded Friday that brokerages scrutinize their corporate governance practices to prevent insider trading, amid growing distrust in the stock market by investors.
An emergency meeting attended by about 50 brokerages was held at the Tokyo Stock Exchange, the first of its kind co-organized by the association and the bourse, following a spate of insider trading revelations involving employees of major securities firms.
"We have to admit that our handling of information and professional ethics have been inadequate," Yoshio Okubo, vice chairman of the association, said at the meeting, noting the whole industry must act more responsibly.
The association, the Tokyo bourse and the Osaka Securities Exchange asked the brokerages to report the outcomes of their in-house investigations by Sept. 28.
The request was made in the wake of insider trading scandals involving information leaked by major brokerages, including Nomura Securities Co. and Daiwa Securities Capital Markets Co.