There has been a development in the story of an ex-trader at Nomura International (Hong Kong) Limited (Nomura Hong Kong), who incurred hefty losses, manipulated the risk management system of the bank to conceal these and the real risk exposure of his trades, leading to the bank being fined HK$4.5 million in July this year.
Hong Kong’s Securities and Futures Commission (SFC) today announced the measures it has taken against the trader in question – Masashi Yonezawa, formerly referred to as “Mr X”.
The SFC has banned Mr Yonezawa from re-entering the industry for 30 months.
The disciplinary action comes after an SFC investigation found that Mr Yonezawa, a trader on Nomura Hong Kong’s Delta One trading desk, made false entries in Nomura Hong Kong’s risk management system on three separate days between March and May 2013 to conceal the real risk exposure of his trades. He incurred a loss of incurred US$3.3 million on May 23, 2013.
As a result of Yonezawa’s misrepresentations, Nomura Hong Kong was prevented from effectively monitoring the trading activities of its Delta One trading desk.
In determining the disciplinary action, the SFC has taken into account all relevant circumstances, including the fact that Yonezawa’s conduct was found to be deliberate and dishonest.
To view the official announcement from the SFC on the action against Masashi Yonezawa, click here.