Japan's Regulators to Check High-Risk Trades After Archegos

Japanese regulators will heighten scrutiny on high-risk trades by domestic financial institutions in the wake of the Archegos fallout, the Nikkei business daily reported on Wednesday. Top investment bank and brokerage, Nomura Holdings, was one of the highest-profile casualties while Mitsubishi UFJ Financial Group (MUFG) warned of a loss of around $270 million. The Financial Services Agency (FSA) and the Bank of Japan (BOJ) will scrutinise how financial institutions that incurred losses had been managing transaction risks, the Nikkei said. The regulators will also conduct blanket checks on financial institutions to see whether any other entities had suffered losses. Read more.