Japan regulator orders brokerage to halt block trading

TOKYO (AP) — Japan’s Financial Services Agency has ordered brokerage SMBC Nikko Securities to suspend its block trading operations for three months as part of penalties in a market manipulation case. That follows the arrest of its vice president and several other employees for allegedly putting in massive buy orders to prop up stock prices of certain shares. The company had already suspended its block trades due to the scandal. In a written statement it apologized and said it was taking the penalties “very seriously.” SMBC Nikko Securities and its parent company, Sumitomo Mitsui Financial Group also outlined plans for improving their governance.