Tokyo exchange employee under probe for alleged insider trading, JPX says

(Reuters) -A Tokyo Stock Exchange employee is under investigation by the country’s financial watchdog for suspected insider trading, its parent company Japan Exchange Group (JPX) said on Wednesday.

The Securities and Exchange Surveillance Commission is investigating the employee, and JPX will fully cooperate with the probe, the company said in a statement.

“We sincerely apologise to the listed companies and other stakeholders for the great inconvenience and concern this may have caused,” JPX said.

The employee allegedly bought and sold stocks based on undisclosed corporate information, and the investigation began around September, according to the newspaper, which first reported the news earlier on Wednesday.

Neither the employee or the company stocks allegedly traded were identified by JPX or in the Nikkei report.

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

($1 = 151.0700 yen)