SBI E*Trade faces regulatory penalty for rule breach

SBI E*trade Securities Co., a Japanese online brokerage, faces a possible penalty for violating financial regulations, the country's securities watchdog said.

The Securities and Exchange Surveillance Commission recommended the Financial Services Agency take disciplinary action against Tokyo-based SBI E*trade, the commission said in a statement today.

The brokerage has failed to put in place a system to prevent customers from engaging in “unfair trading,” the statement said, without giving further specifics.

“We will take the action seriously and will enhance our internal system,” said Takeru Suzuki, a spokesman at SBI E*trade.

(Published by Bloomberg 13, 2008)