Local Japanese governments have also dropped Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. from managing their bond issuances following its alleged price manipulation in the government bond futures market, Reuters reported July 3, citing sources.
The joint venture by Mitsubishi UFJ Financial Group Inc. and Morgan Stanley lost its role as manager of a bond issuance by the Japanese city of Kyoto in Tokushima Prefecture and Japan Housing Finance Agency.
This comes after three local companies reportedly dropped the brokerage as underwriter for their bond issues.
The country's Securities and Exchange Surveillance Commission recommended the Financial Services Agency to impose a ¥218.4 million penalty against the company following an investigation, which found that Mitsubishi UFJ Morgan Stanley Securities placed orders on Aug. 25, 2017, for 10-year government bond futures without planning to execute them.
A spokesman for the securities firm said it took its clients' decision seriously and would work to regain their trust, the report added.