Friday, 25 July 2014
Last updated 51 sec ago
Aug 24 2012 | 12:46pm ET
Hedge fund Japan Advisory, all but shut down by Japan's market regulator over alleged insider-trading, will contest the charges and fine against it.
Japan's Financial Services Agency is rarely fought in such cases. But Japan Advisory, led by American Edward Brogan, who left Japan three days after the FSA revoked his firm's license at the end of June, said it will bring the case before the FSA's administrative law judges, a rare appeal.
The FSA found that Japan Advisory short-sold about US$6.8 million of Nippon Sheet Glass shares in August 2010, four days before the company announced it would sell new shares to raise capital. Regulators think that a former employee at Daiwa Securities Group—one of the Nippon Sheet Glass offering's lead bookrunners—passed the tip; Daiwa has apologized.
The FSA has since issued a directive to a dozen banks—a first for the regulator—seeking information about possible leaks to the hedge fund.
An FSA official told the Financial Times that it would "have solid evidence" to present at the hearing.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…