Japan’s FSA Sees Block Offers as Issue Unique to SMBC Nikko (1)

Japan’s financial regulator sees no industry-wide issues relating to block offers for now, people familiar with the matter said, after SMBC Nikko Securities Inc. and some of its employees were indicted for alleged market manipulation.

The Financial Services Agency doesn’t have any particular concern about the trades in general, the people said, asking not to be identified discussing private information. Other brokerages carry out block offers in a way that minimizes potential problems, one of the people said.

Tokyo prosecutors charged SMBC Nikko and five staff members last month in relation to allegedly propping up the price of certain companies’ ...