July 31, 2018 / 8:00 AM / 9 months ago

Japan FSA fines MUFG-Morgan Stanley JV $2 million for market manipulation

TOKYO (Reuters) - Japan’s Financial Services Agency on Tuesday slapped a fine of 218.37 million yen ($1.96 million) yen on a joint venture of Mitsubishi UFJ Financial Group Inc and Morgan Stanley for trying to manipulate Japanese government bond futures prices.

The Securities and Exchange Surveillance Commission had recommended in June a fine of around $2 million.

The SESC had said one of its dealers at Mitsubishi UFJ Morgan Stanley Securities Co placed both buy and sell orders last August for a 10-year Japanese government bond futures contract without intention to execute.

The dealer aimed to create the impression of strong interest for the contract and the brokerage gained 1.58 million yen from related transactions, according to the SESC. The brokerage has acknowledged the findings.

Reporting by Takahiko Wada; Writing by Junko Fujita; Editing by Chang-Ran Kim

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