The Japan Fair Trade Commission issued a warning to the Japanese brokerage unit of Deutsche Bank after it found that a trader colluded with a counterpart at Citigroup on trades of European sovereign bonds — the first such notice handed down to a foreign securities company operating in the country.
The trader at Deutsche Securities exchanged order details and other information from April 2010 with the Citigroup employee, according to a statement published by the commission Wednesday. Starting November 2010, the two traders attempted to coordinate on pricing and share the orders between themselves, the statement said. An official at the commission, who asked not to be identified due to internal policy, said the pair had ceased their activities by March 2014.
The transaction volume ranged from several hundred million yen to several billion yen, the official said. He added, without expanding, that the commission is in talks with the Financial Services Agency over the issue.
“Deutsche Securities has already implemented improvements designed to prevent any recurrence of the conducts highlighted by the JFTC,” Tokyo-based Deutsche Securities spokeswoman Atsuko Yoshitsugu said by phone after the statement was published.
Full Content: Finance Magnates
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