The news organisation reports that the Democratic Party of Japan’s 15-member working group, led by former Morgan Stanley (MS) managing director Tsutomu Okubo, discussed the draft Friday and will submit a final version to the party by July 31st, said Kazuya Kondo, a member of the group, while declining to show the document. The DPJ will then submit a proposal to the country’s Financial Services Agency.
Japan’s Securities and Exchange Surveillance Commission has uncovered five insider-trading cases since March related to equity offerings in 2010. The watchdog has recommended fines for traders who made short sales based on leaked information in those cases, while underwriters who gave them the tips have received no penalties, based on existing rules.
'Insider trading has destroyed credence in the Japanese capital market', Shinsuke Amiya, a DPJ lawmaker, said in opening remarks at the conference Friday morning. Amiya is a former vice chairman at Merrill Lynch & Co. (BAC) in Japan. 'It’s critical for us to devise policy recommendations to tackle the issue'.
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