Some of Japan's largest financial institutions have halted trading securities with Nomura Holdings as the fallout from its market manipulation scandal spreads, according to people familiar with the matter.
At least 10 firms, which include major life insurers, trust banks and asset management firms, have temporarily suspended some business activities with Nomura because of the breach, the people said, asking not to be identified discussing nonpublic information. They may resume their equity or bond dealings with Nomura when there are further developments such as when the brokerage details steps to prevent a recurrence, they said.
One of the country’s biggest retirement funds, Pension Fund Association for Local Government Officials, halted purchasing local government bonds and trading Japanese government bonds with Nomura for its in-house operations, according to an official at its fund planning and administration division. This took place from Sept. 26 in line with internal rules, the official said, asking not to be named citing company policy.
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