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Digital Identity, Security & Online Fraud

SEC fines Mizuho's US unit with USD 1.25 million

Tuesday 24 July 2018 | 11:04 AM CET

The US Securities and Exchange Commission has penalized Mizuho Financial Group for its failure to safeguard information pertaining to stock buybacks by its issuer customers.

Thus, the US unit of Mizuho Financial Group has pay USD 1.25 million penalty for failing to maintain and enforce policies and procedures to prevent the misuse of material non-public information, including maintaining effective information barriers between different trading desks and requiring employees to keep client information confidential, the SEC stated in a news release.

Mizuho traders regularly disclosed material non-public customer buyback information to other traders and Mizuho's hedge fund clients, from approximately December 2012 to December 2014, according to SEC.

That information, which the SEC said was "routinely communicated across trading desks," included the identity of the party placing the order, the order size, limit price, and indications that the orders were buyback orders.

Mizuho did not admit to or deny any of the SEC’s findings.

Mizuho Securities USA LLC agreed to pay the penalty without admitting or denying the SEC’s findings, the statement said, adding that it has censured the company and ordered it to prevent future violations.

More: Link
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