Mizuho says it has encountered problems in its link to the JASDEC Pre-Settlement Matching System (PSMS) in Tokyo. The consequent impact on the overall performance of its custody system led to the cancellation of a number of transactions where Mizuho was the counterparty.
A rival custodian in Tokyo says it has cancelled a number of pre-matched settlements with Mizuho, and re-paid cash to customers, and kept other settlements pending. He adds that the bank is suspending business until Mizuho has fixed the problem.
Mizuho implemented a new custody system over last weekend. The bank says it expects to be back to normal today.