MUFG JV excluded from more bond issues after market manipulation - DealWatch
It has now also been dropped as manager of issuances by the city of Kyoto, Tokushima Prefecture in western Japan and the Japan Housing Finance Agency, people with direct knowledge of the matter said on Tuesday.
A spokesman at the JV said it took its clients' decisions seriously and would work on regaining their trust.
"It is a matter for a customer to decide, and we have no further comment," he said.
The Securities and Exchange Surveillance Commission on Friday recommended the Financial Services Agency fine the brokerage around $2 million (1.52 million pounds), saying one of its dealers placed both buy and sell orders in August for a 10-year Japanese government bond futures contract without intention to execute.
The dealer aimed to create the impression of strong interest for the contract and the brokerage gained 1.58 million yen from related transactions, the watchdog said.
(Reporting by Naoyuki Katayama of Dealwatch, additional reporting by Thomas Wilson; Editing by Himani Sarkar)