Press Release
May 18, 2001

The Securities and Exchange Surveillance Commission (SESC) conducted an inspection of Mizuho Securities Co., Ltd. (Mizuho) based on provisions of the Securities and Exchange Law (SEL), and found legal violations described below.

Today, the SESC sent a recommendation to the Prime Minister and the Commissioner of Financial Services Agency (FSA) to take a disciplinary action against Mizuho pursuant to Article 20(1) of the FSA Establishment Law.

  1. Front running

    From January 2000 to February 2001, traders in Mizuho had been executing orders from customers as well as dealing business for Mizuho itself. As a result, Mizuho often carried out securities transactions of the stock ordered by customers, for its own account, at better prices, prior to customers' f orders were completed.

    (Violation of Article 42(1)(viii) of the SEL)
  2. Selling underwriting securities to a parent company

    From August 1999 to November 2000, Mizuho sold securities underwritten by itself to parent companies within six months from the dates when Mizuho underwrote those securities.

    (Violation of Ministerial Ordinance, Article 45(3) of the SEL)

Recommendations to the FSA | top