Nomura International (HK) faces disciplinary action by the Securities and Futures Commission over an Australian futures deal after Hong Kong's top court deemed its bid to hold off sanctions was 'wholly without merit'.
The Japanese securities giant's last-ditch attempt to keep the SFC at bay pending the outcome of a Sydney civil trial was dismissed by the Court of Final Appeal yesterday.
The SFC has the power to revoke or suspend the company and the registration of the traders concerned, or issue a reprimand.
Nomura has been battling the SFC in the courts since December. Yesterday however, Chief Justice Andrew Li Kwok-nang, Mr Justice Henry Litton and Mr Justice Charles Ching said: 'In our view, the application is wholly without merit and must be dismissed, with costs.' SFC executive director of enforcement Mark Dickens said the decision affirmed the importance of the SFC's role.
'The SFC's ability to regulate the conduct of Hong Kong registrants is not to be compromised merely because other overseas regulators may also have jurisdiction over that conduct,' he said.
Unusual transactions in the Sydney market by the Japanese giant on March 29, 1996, prompted an immediate probe by the Australian Securities Commission.
It is alleged Nomura manipulated the market with a A$600 million (about HK$2.92 billion) sell order minutes before close of trade on the last day of the March futures contract.
