Business / Corporate

Fine sought for Citigroup unit over alleged rigging of Japanese government bond futures

JIJI

The nation’s securities watchdog is seeking a ¥133 million fine for a unit of U.S. financial giant Citigroup Inc. for the alleged rigging of Japanese government bond futures prices.

The Securities and Exchange Surveillance Commission on Tuesday recommended the Financial Services Agency impose the fine on the London-based unit, Citigroup Global Markets Ltd.

In October last year, a company dealer placed JGB futures orders on the Osaka Exchange without the intention of executing them, leading to a manipulation of prices and unjust profits, according to the SESC.

The transactions in question were carried out during night trading hours, when prices tend to be volatile due to low market liquidity, the SESC also said.

In July last year, the FSA imposed ¥218 million in fines on Mitsubishi UFJ Morgan Stanley Securities Co. for JGB futures manipulations.