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FSA slaps 5-day stock trading ban on E-Trade for violation.

TOKYO, June 18 Kyodo

The Financial Services Agency (FSA) said Tuesday it will ban E-Trade Securities Co. from stock trading for five days from next Monday for violating the Securities and Exchange Law in connection with trading Shimura Kako shares.

The FSA's decision also led the Finance Ministry to ban the online brokerage house from taking part in government bond auctions for five days from next Monday.

According to the FSA, an asset manager at E-Trade ordered to buy a total of about 9.8 million Shimura Kako shares from Yoshiteru Nishi, president of a consulting firm, between Jan. 15 and 19 last year. The FSA said the manager executed the orders knowing they were designed to manipulate the price of the shares of the special nickel processor.

The disciplinary action was earlier recommended by the Securities and Exchange Surveillance Commission, Japan's securities industry watchdog.

The FSA also ordered E-Trade to introduce external auditing to improve its internal control system, the first order of the kind the agency has issued.

Nishi, 46, has already been indicted over the case.
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Publication:Japan Weekly Monitor
Date:Jun 24, 2002
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