Mitsubishi UFJ Financial Group’s joint venture with Morgan Stanley faces a 218 million yen ($2 million) fine for allegedly manipulating prices in the Japanese government bond futures market.
Bloomberg News reports that Mitsubishi UFJ Morgan Stanley Securities Co. placed orders for 10-year bond futures contracts last August without intending to execute them, the Securities and Exchange Surveillance Commission said in a statement on Friday. It recommended that the Financial Services Agency impose the fine.
An employee of the firm placed a large amount of buy orders at the best bid price and below, as well as sell orders at the best offer price and above, on the Osaka Exchange, according to the SESC. The orders “would mislead other investors into believing that market transactions of derivatives were thriving” and cause fluctuations in the 10-year JGB futures market, the SESC said.
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