Tokyo Stock Exchange Employee Investigated for Insider Trading

A Tokyo Stock Exchange employee is currently under investigation by the country's financial watchdog for suspected insider trading, according to a report by Nikkei on Wednesday.

The Securities and Exchange Surveillance Commission is investigating the employee, who allegedly bought and sold stocks based on undisclosed corporate information. This probe reportedly began around September.

Both the watchdog and Japan Exchange Regulation, which oversees certain operations for the TSE under the Japan Exchange Group, have been aware of the transactions.

Insider trading violates Japan's Financial Instruments and Exchange Act, with offenders facing up to five years in prison, a fine of up to 5 million yen ($33,097), or both.

The Japan Exchange Group could not be reached immediately for a comment.

($1 = 151.0700 yen)