TOKYO (Reuters) - Japan's financial regulator on Friday ordered SMBC Nikko Securities to halt its block trade business for three months and to improve its compliance, as administrative penalties over a market manipulation case.

The Financial Service Agency also ordered the brokerage's parent, Sumitomo Mitsui (NYSE:SMFG) Financial Group Inc (SMFG), to improve the group's compliance.

SMBC Nikko Securities and six former executives have been indicted on market manipulation charges over the purchase of 10 individual stocks on the market, allegedly to push up their prices and ensure that block trade deals in them did not fall through.

SMBC Nikko has already suspended its block trade business, which had accounted for about 5% of its annual trading revenue before the scandal.
Source: Investing.com
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