After the regulatory agencies determined that Takushi Sawada single-handedly orchestrated the manipulative trades that caused nomura holdings to be embroiled in a scandal, this largest brokerage in japan dismissed the senior trader.

A filing document from the American financial industry regulatory authority (Finra) shows that after the Japanese market regulator discovered that Sawada participated in manipulating derivatives trading linked to the country's sovereign bonds, his employment relationship with Nomura was "terminated" on September 30. The document indicates that these so-called "layered" trades constitute illegal fraudulent activities.

Since Japanese authorities disclosed the related trades in September, Nomura's CEO Kentaro Okuda has faced pressure to restore the bank's reputation. Nomura's business in government bond auctions has also been impacted, with corporate clients such as Toyota Financial and Sumitomo Mitsui Trust Holdings shifting some business to other firms.

A Nomura spokesperson stated that all traders at the bank have received repeated training from both Nomura and Finra, making them aware that fraudulent activities are unacceptable, and they have signed numerous compliance confirmations and certificates. "All employees have an obligation to report misconduct."

Finra's documents show that Sawada joined Nomura in Tokyo in 2002. He later became one of the most senior traders in the Japanese government bond market, where Nomura holds considerable influence in this nearly $8 trillion market.

The Japan Securities and Exchange Surveillance Commission, under the Financial Services Agency of Japan, disclosed on September 25 that an unidentified Nomura trader manipulated the derivatives market linked to 10-year government bonds. The regulatory agency stated that the employee arranged a series of buy and sell orders and then canceled those orders.

An official from the Japan Securities and Exchange Surveillance Commission declined to comment on Finra's documents.