Japan Advisory Appeals Insider-Trading Rap

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.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR