U.S. Units of Japan Brokerages Queried

The New York Stock Exchange has contacted the U.S. units of Japan’s “Big Four” stock brokerages to determine whether the market abuses that took place in Japan were duplicated in the United States, according to Wall Street sources.

Nomura International Securities Inc. said in a statement that it was also contacted by the U.S. Securities and Exchange Commission. But Mary McCue, an SEC spokeswoman, said she had “no knowledge” of any such inquiry after checking with officials responsible for regulating markets.

Earlier this week, stock markets around the world were rocked by disclosures that Japanese brokers had illegally rigged markets for certain stocks and improperly reimbursed some of their big clients for losses.

“We have been asked by the SEC and the NYSE to confirm that similar conduct to that reported in Tokyo is not occurring in the U.S.,” Nomura Vice President P. J. Johnson said. “We have so confirmed.”

Masumi Yamaguchi, president of Nikko Securities International, said: “We have nothing to do with the things that happened in Tokyo.” He declined comment on the NYSE inquiry.

Chris Omura, a bond and futures trader at Daiwa Securities America, confirmed that the firm had received a written inquiry from the Big Board but could not provide further information.

Officials of Yamaichi International (America) Inc. couldn’t be reached for comment.

A spokesman for the New York Exchange said: “We certainly have rules against brokers sharing in their clients’ profits or losses,” but he declined to comment on specific communications between the exchange and member firms.

One Japanese brokerage source termed the inquiry “routine” and “what any good bureaucrat would do” given the magnitude of the Japanese scandal.