Nomura hit with £1.75m FSA fine

The FSA says the failings came to light following the discovery, in June last year, of mis-marking of volatility levels in the firm's Hong Kong Single Stock book. It resulted in a negative valuation adjustment of £10.8m and, following re-assessments across its other IED books, a further negative adjustment of £5.5m. The regulator says Nomura's book-marking procedures "fell far short of those expected" for high risk financial products. Nomura's shortcomings were particularly serious, the FSA adds, because they were systemic and occurred over a prolonged period of time Margaret C...