SESC Latest Topics No.38«August 2017»

Recommendation for an administrative disciplinary action against YAMAGEN Securities Co., Ltd.

«Summary»

The SESC recommended that the prime minister and the commissioner of the FSA take an administrative disciplinary action against YAMAGEN Securities Co., Ltd. (hereinafter “the Company”), a Type I and II Financial Instruments Business Operator.
This recommendation is based on the findings of an inspection of the Company, whereby the director-general of the Kanto Local Finance Bureau identified that the Company had (i) accepted and executed orders to buy securities while knowing that these orders would result in the formation of manipulative quotation not reflecting actual market status and (ii) failed to establish a sufficient trading management system to prevent acceptance and execution of orders that may result in the formation of manipulative quotations.