A Tokyo Stock Exchange employee is under investigation by the Securities and Exchange Surveillance Commission (SESC) for suspected insider trading, a statement from Japan Exchange Group (JPX) confirmed on Wednesday.
JPX Confirms Insider Trading Investigation into Tokyo Stock Exchange Employee
According to reports, the employee, a man in his 20s, is alleged to have provided information on listed companies’ tender offers to a relative, who then used the information to profit from equity trading.
The SESC reportedly launched its investigation in September, and JPX has pledged to fully cooperate with the probe.
The specific details of the alleged insider trading activities, including the companies involved and the amount of profit made, remain undisclosed.
However, the case has raised concerns about the need for stronger measures to prevent such misconduct.
This incident comes on the heels of another suspected insider trading case involving a judge who was on temporary assignment to Japan’s Financial Services Agency.
The SESC is also investigating the judge for allegedly trading shares based on undisclosed information obtained while on the job.
Insider trading is a criminal offense in Japan, punishable by up to five years in prison, a fine of up to 5 million yen, or both. The SESC’s investigation is ongoing, and further details may emerge as the probe progresses.
