TOKYO, March 25 Japan's securities market
watchdog said on Tuesday it will boost oversight over major
securities houses Nomura Holdings Inc and Daiwa
Securities Group Inc as a way to help maintain the
stability of the overall financial system.
Nomura and Daiwa are Japan's biggest securities traders and
their sheer size means they have the potential to drag the whole
trading system into any financial trouble they run into.
In announcing its annual oversight policy, the Securities
and Exchange Surveillance Commission said, as a preventive
measure, it will increase the frequency of on-site inspections
of the two securities houses to once a year from this year
instead of once every three to four years.
The regulator will also beef up off-site monitoring through
regular interviews with employees and data collection.
The SESC also said it will improve regulation of asset
managers, especially those with a large number of retail
clients. These asset managers are not inspected regularly now.
(Reporting by Noriyuki Hirata; Writing by Taiga Uranaka;
Editing by Miral Fahmy)