Japan's FSA suspends BNP Paribas unit
23 October 2009 | 5458 views | 0
Japan's Financial Services Agency has ordered BNP Paribas to suspend its derivatives business in the country for two weeks for share price manipulation and reporting failures.
According to the FSA, a trader in BNP's Tokyo equity and options department recently sent a massive buy order for an unidentified stock, with the intent of fixing the price.
In addition, the watchdog says BNP failed to respond properly to a separate order issued last year relating to a failed real-estate firm's convertible bond issue.
The regulator ordered BNP to submit reports related to the failure but says these were "incomplete in terms of content and contained untruthful descriptions".
Says the FSA: "Branch's business management control system and internal control system had serious defects, which includes cases of overlooking inappropriate business operations."
The company's boss in Japan, Yusuke Yasuda, will resign over the incident and the two week suspension starts on 2 November.