|June 23, 2003|
Based on the inspection results of
Tokai Tokyo Securities Co., Ltd.
1. Recommendation Issued
The Securities and Exchange Surveillance Commission today issued a recommendation that the Prime Minister and the Commissioner of the Financial Services Agency (FSA) take administrative disciplinary and other appropriate action pursuant to Paragraph 1 of Article 20 of the FSA Establishment Act based upon the results of the inspection of Tokai Tokyo Securities Co., Ltd. (located in Kyobashi, Chuo-ku, Tokyo; Okumura Masao as Representative Director and President; capitalized at approximately 36 billion yen; staffed with approximately 2,400 employees including directors), which found the following facts constituting violations of laws and regulations by Tokai Tokyo Securities Co., Ltd. and its employee.
2. Facts Found
Manager at Equities Trading Department
of Tokai Tokyo Securities Co., Ltd. from June 2002 to March 2003 placed in
the course of the business a series of massive limit buy or sell orders
without any intention of their execution in connection with those numerous
issues of listed stocks which he had previously purchased or sold for the
company's own account, with the aim of making the prices of the stocks move
advantageously to the individual stocks' position (i.e., making the stock
prices rise in case of long position or making the stock prices fall in case
of short position) by inducing any of the other market participants to place
orders for the purchase or sale of the same stocks.
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