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Japan watchdog to check high-risk trades after Archegos -Nikkei

Kitco News

TOKYO (Reuters) -Japan’s Financial Services Agency and the Bank of Japan will investigate high-risk trades by domestic financial firms after the Archegos fallout, the Nikkei business daily reported on Wednesday.

Top investment bank and brokerage, Nomura Holdings, was one of the highest-profile casualties while Mitsubishi UFJ Financial Group (MUFG) warned of a loss of around $270 million.

Japan’s regulators will check financial institutions’ management of transaction risks, the Nikkei said, without citing sources.

The FSA considers it critical that Japan’s major financial institutions faced a risk of losing several hundred billion yen, or several billion dollars, the Nikkei said.

Reporting by Kaori Kaneko and Makiko Yamazaki; editing by Andrew Heavens and Jason Neely

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