Detention of senior employees of SMBC Nikko

According to public broadcaster NHK, four top employees of the Japanese firm SMBC Nikko, including Director of Equity Department Trevor Hill, were detained at the Japanese firm's headquarters in Tokyo while these people allegedly made illegal transactions in certain stocks in order to prevent prices from falling.

It was alleged that the employees helped them sell shares in bulk to major shareholders outside of stock market trading hours without worrying about a price drop.

Refused to resign

At the press conference, SMBC Nikko President Kondo Yuiçiro expressed regret that the company has caused a situation that could undermine the confidence of the markets in it as a company due to the allegations of misconduct.

Apologizing to investors, Kondo denied allegations that he would resign from his current position, saying that the internal administration system is not capable of preventing illegal action.

Noting that an investigation team has been formed, Kondo described his responsibility for the process as doing his best to diagnose the situation and handle it correctly, and to restore trust by implementing the measures.

Sanctions for the crime of stock market manipulation in violation of the Financial Instruments and Markets Act in Japan include up to 10 years in prison or a fine of 10 million yen ($87,000).