|
The Director-General of Kinki Local Finance Bureau conducted the
inspection of Ichiyoshi Securities Co. (Ichiyoshi) based on the
provisions of Securities and Exchange Law (SEL) and found legal
violations described below.
The Securities and Exchange Surveillance Commission (SESC) sent
recommendation to the Minister of Finance to take disciplinary
action against Ichiyoshi pursuant to Article 19 1) of Ministry
of Finance Establishment Law on April 17, 1998.
(Counter bucketing and bucketing)
On January 24, 1996, Ichiyoshi received a request from a financial
corporate customer for transactions to realize unrealized gains,
which were executed on the Tokyo Stock Exchange (sale by customer,
purchase by Ichiyoshi on his own account, 700,000 shares).
However, in return transactions on said stock exchange (purchase
by customer, sale by Ichiyoshi) on the following day, because
of purchase orders of others, all limit purchase orders of the
customer could not be executed at the previous day's executions
price and 10,000 shares were left undone.
In this events, the vice-chief of equity division who was in
charge of placing orders thought it difficult for said order to
be executed at said price under the bull market, and then he received
from the customer the correction order from limit order on the
Tokyo Stock Exchange to market order on the Osaka Securities Exchange.
However, he did not place the order on the Osaka Securities Exchange
immediately to see how the market is going for a while, and what
make it worse, the price was rising more just before the closing.
Thus the vice-chief directly transferred said 10,000 listed shares
from its own account to the customer's instead of purchasing via
stock exchanges.
(violation of SEL Article 47 and 1291))
|