TOKYO (AP) -- Japanese media say Nomura Holdings' CEO Kenichi Watanabe will resign to take responsibility for an insider trading scandal at Japan's biggest investment bank.
The Nikkei newspaper and Kyodo News agency said Thursday that Watanabe and the company's chief operating officer would quit, but company officials declined to comment on the reports.
Watanabe is scheduled to address a 6 p.m. news conference at Nomura's Tokyo headquarters.
Japan's financial regulators are investigating the company's investment arm, Nomura Securities Co., for leaking information to clients ahead of planned securities offerings by energy company Inpex, Mizuho Financial Group and Tokyo Electric Power Co. in 2010.
Nomura has admitted that some its personnel were involved in leaking inside information.
A panel of external lawyers commissioned by the company said in a June 29 report that its equity sales staff would seek information from colleagues about upcoming offerings that Nomura was underwriting and then pass along those tips to customers.
The panel made a series of recommendations to prevent such incidents in the future, including banning conversations with clients about rumors regarding financing transactions and using personal cellphones for business.
Nomura is reportedly losing underwriting business in wake of the scandal.
The company is still being investigated by the Securities and Exchange Surveillance Commission and could face penalties.
Nomura's share price has more than halved since word of the investigation first surfaced in March, falling from 417 yen to 259 yen. It was up 5.7 percent Thursday on reports of Watanabe's resignation.
- Nomura Holdings