TOKYO May 26 Japan's securities regulator will
seek a fine against a fund management arm of Sumitomo Mitsui
Trust Holdings Inc for insider trading for the second
time in two months and believes an employee of broker Nomura
Holdings Inc was again in this case the source of the
leak, people with knowledge of the matter said.
The Securities and Exchange Surveillance Commission (SESC)
will recommend a fine against the fund management firm for
insider trading related to the public share offering of lender
Mizuho Financial Group Inc in 2010, the sources said.
The SESC believes an employee of Nomura, which was an
underwriter of the Mizuho offering, tipped off a fund manager
about the share sale before it was made public, the sources
said, speaking on condition of anonymity.
Nomura declined to comment. Sumitomo Mitsui Trust could not
be reached for comment. The SESC as a policy does not comment on
individual cases or ongoing investigations.
It would mark the second time the regulator has punished
Sumitomo Mitsui Trust, following a similar case in March, when
the firm acknowledged one of its fund managers traded on inside
information on a share offering by energy firm Inpex Corp
Nomura was also the lead underwriter on the Inpex offering,
and the regulator believes a Nomura employee leaked information
on that share sale as well, sources with direct knowledge of the
matter have told Reuters.