SEC Seeks to Toss Suit Against Ex-Nomura Trader Cleared of Fraud

An effort to crack down on questionable tactics used by bond traders suffered another blow when the U.S. Securities and Exchange Commission asked a federal judge to throw out a lawsuit against a former Nomura trader acquitted of fraud charges for lying to his customers about prices.

The SEC on Tuesday sought dismissal of its suit against Tyler Peters, one of three former Nomura traders who were arrested in 2015. They were charged with defrauding investors by inflating the prices of mortgage-backed securities in the wake of the U.S. financial crisis to boost their firm’s profits and increase their ...