Mizuho Securities

Mizuho Securities Co., Ltd.
みずほ証券株式会社
Industry Investment banking
Headquarters Ōtemachi, Tokyo, Japan
Parent Mizuho Corporate Bank, Ltd.
Website www.mizuho-sc.com/english
Mizuho Securities headquarters in Ōtemachi, Tokyo

Mizuho Securities Co., Ltd. (みずほ証券株式会社 Mizuho Shōken Kabushiki-gaisha) is a Japanese investment banking and securities firm. It is a subsidiary of Mizuho Corporate Bank, Ltd., which is a wholly owned subsidiary of Mizuho Financial Group, the second-biggest Japanese financial services conglomerate.

History

The current Mizuho Securities is established by a merger between Shinko Securities and the former Mizuho Securities. The former Shinko Securities (a former equity-method affiliate of Mizuho Financial Group) and the former Mizuho Securities (a former consolidated subsidiary of Mizuho Financial Group) merged on 7 May 2009. The surviving entity was the former Shinko Securities, which changed its name to Mizuho Securities upon the merger. After the merger, Mizuho Financial Group holds 59.51% equity ownership of the new Mizuho Securities.[1]

Massive sale order of J-COM share incident

On 8 December 2005, Mizuho Securities erroneously placed an order to sell 610,000 shares of J-COM Co., Ltd. for one yen each, instead of a commissioned order to sell one share of J-COM Co., Ltd. for 610,000 yen on the Tokyo Stock Exchange.[2] J-COM Co., Ltd. (J-COM Holdings Co., Ltd. since December 2009) is a Japanese staffing service company, which was listed on the Mothers (market of the high-growth and emerging stocks) section of the Tokyo Stock Exchange on the day.[3] As a result of this incident, Mizuho Securities accrued a loss of approximately 40.7 billion yen.[4]

Mizuho Securities brought a case for its damages of approximately 41.6 billion yen against the Tokyo Stock Exchange (TSE) insisting that Mizuho Securities could not cancel the order due to a fault in the TSE's computer system, and that TSE negligently failed to suspend the exchange despite the recognition of such an unusual order.[5]

On 4 December 2009, the Tokyo District Court made a judgment ordering TSE to pay Mizuho Securities approximately 10.7 billion yen, holding that: (i) TSE was grossly negligent in leaving its defective system which did not either duly process Mizuho Securities' cancellation or suspend the deal, and (ii) TSE was 70% at fault and Mizuho Securities was 30% at fault under Japanese comparative negligence rules.[2]

Mizuho Securities appealed the case to the Tokyo High Court.[6]

Overseas subsidiaries and offices

Mizuho Securities has the following subsidiaries and offices outside Japan.[7]

Europe and the Middle East

United States

Asia

References

  1. ↑ "Form 20-F Mizuho Financial Group, Inc.". Financial Group, Inc. 2009-08-19. p. 42. Retrieved 2010-04-14.
  2. 1 2 Mizuho Securities v. Tokyo Stock Exchange (Tokyo District Court, 4 December 2009)
  3. ↑ Archived February 10, 2010, at the Wayback Machine.
  4. ↑ "News release re the first instance judgment rendered in the lawsuit for damages against the Tokyo Stock Exchange, Inc." (PDF). Mizuho Securities. 2009-12-04. p. 1. Retrieved 2010-04-16.
  5. ↑ Mizuho Securities v. Tokyo Stock Exchange (Tokyo District Court, December 4, 2009)
  6. ↑ "News release re Tokyo District Court's judgment regarding damages lawsuit to be pppealed, Inc." (PDF). Mizuho Securities. 2009-12-18. p. 1. Retrieved 2010-04-16.
  7. ↑ Mizuho Securities : Overseas Network. Mizuho-sc.com. Retrieved on 2013-08-23.
  8. ↑ "Primary Dealers List". Federal Reserve Bank of New York. 2010-04-01. Retrieved 2010-04-16.
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