Japan's securities watchdog has recommended punishment of SMBC Nikko Securities, the brokerage unit of Sumitomo Mitsui Financial Group, over alleged market manipulation that led to the indictment of former executives.
The Securities and Exchange Surveillance Commission recommended Wednesday that the Financial Service Agency impose an administrative punishment on Nikko after it found insufficient compliance had allowed the misconduct.
Such measures typically entail temporary business suspensions or orders to improve internal controls, among other things.