JPX reduces executive salaries due to insider trading by former TSE employee

Japan Exchange Group Inc., the parent company of the Tokyo Stock Exchange, has recently announced disciplinary measures following an insider trading incident involving a former TSE employee. The Group CEO, Hiromi Yamaji, has volunteered to a significant 50 percent reduction in monthly compensation for the next two months as a form of accountability. Additionally, TSE President and CEO Moriyuki Iwanaga will also endure a similar cut in compensation for the same period.

Furthermore, TSE Senior Executive Officer Katsumi Ao will be subject to a 20 percent decrease in compensation for the next two months, while Koji Watanabe, who heads the TSE’s Listing Department, has been reprimanded with a stern warning. These actions come as part of the organization’s response to the breach of trust caused by the insider trading incident.

In an effort to mitigate the risk of similar occurrences in the future, the exchange operator has implemented new protocols. These include restricting access to confidential information to only those employees who require it for their work and supervisory personnel. By limiting the number of individuals with access to undisclosed information, Japan Exchange Group Inc. aims to enhance data security and prevent potential leaks that could compromise the integrity of the market.

During a press conference addressing the issue, CEO Hiromi Yamaji expressed his sincere apologies for the disruption and inconvenience caused to market participants due to the insider trading incident. He also acknowledged the importance of taking proactive measures to prevent similar incidents from happening in the future. Yamaji emphasized his commitment to leading efforts in recurrence prevention within the organization.

The strict disciplinary actions taken by Japan Exchange Group Inc. underscore its commitment to upholding ethical standards and ensuring the integrity of Japan’s financial markets. By holding executives accountable for their actions and implementing preventive measures, the organization aims to restore trust and confidence in its operations.

Overall, the recent disciplinary measures taken by Japan Exchange Group Inc. serve as a reminder of the importance of maintaining transparency, integrity, and accountability in the financial sector. As the parent company of the Tokyo Stock Exchange, Japan Exchange Group Inc. plays a vital role in safeguarding the credibility of the market and upholding trust among investors and stakeholders.