(Bloomberg) -- Nomura Holdings Inc. admitted to Japan’s financial regulator that it had manipulated the government bond futures market, following a probe by the securities watchdog into transactions three years ago.

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The country’s largest brokerage submitted a written statement recognizing the violation, according to a notice on the Financial Services Agency’s website. This comes after the Securities and Exchange Surveillance Commission last month recommended a fine for the 2021 transgression.

The admission comes about a week after Nomura’s Chief Executive Officer Kentaro Okuda apologized for what happened. Several firms including Toyota Finance Corp. have excluded the brokerage from deals to underwrite their debt.

A fine is “unavoidable” now that Nomura has accepted the charge, said Bloomberg Intelligence analyst Hideyasu Ban. There will be some impact on fee revenue in the current quarter because it will take time before corporate clients resume using Nomura for bond issuance, he said.

The SESC said an employee at the company’s domestic securities unit fraudulently moved JGB futures prices in 2021 by placing large orders without intending to buy or sell all of them. It proposed a ￥21.8 million ($146,000) fine.

Nomura spokesperson Shigehiro Tomita declined to comment, and the FSA declined to elaborate on the notice.

Nomura issued a statement after the SESC’s announcement saying it has been working to revise its JGB futures trading operations since the incident. It also pledged to continue to improve internal controls to prevent a recurrence.

The brokerage is set to announce its results for the July-September quarter on Nov. 1.

--With assistance from Taiga Uranaka.

(Updates analyst comment in fourth paragraph, Nomura no-comment in sixth, earnings schedule in last)

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