LONDON :The London Metal Exchange said on Friday it had fined a unit of Japanese financial group Mizuho 265,000 pounds ($356,000) for a breach of rules following an investigation into alleged misconduct.
Mizuho Securities USA, a Category 2 LME member, failed to report the over-the-counter positions of two of its affiliates between September 5, 2022 and December 20, 2024, the LME said in a notice.
Exchange rules require members to report information about the OTC metals business of their clients, affiliates or themselves to the LME on a weekly basis.
Mizuho’s failure to submit the reportable OTC positions was due to “a gap in its internal system and controls”, breaching its obligations to establish and maintain appropriate and adequate risk management systems, the LME said, adding that Mizuho had since carried out remedial action.
The fine is part of a settlement with Mizuho that has been approved by the LME’s enforcement committee, said the notice from the LME’s head of market surveillance, Joe Morrison.
Mizuho declined to comment.
($1 = 0.7451 pounds)
Source: CNA
