Osaka Securities Exchange: Disciplinary Action on Transaction Participant: SMBC Nikko Securities Inc.

Osaka Securities Exchange Co., Ltd. (hereinafter "OSE") has imposed disciplinary action (a reprimand) against SMBC Nikko Securities Inc. (hereinafter the "Company") pursuant to Rule 42, Paragraph 1, Item 9 of the Trading Participant Regulations.

Additionally, the OSE has requested the Company to submit a business improvement report pursuant to the provisions of Rule 17 of the Trading Participant Regulations.

The business improvement report shall include measures to prevent recurrence established by the Company (the review process, etc. for accepting seconded employees from group companies including its parent bank) and its implementation status.