Officials with Japanese brokerage Nomura Holdings are flagging a potential loss at a US subsidiary amounting to billions of dollars. They say the problem stems from an event last Friday involving transactions between the subsidiary and a US client.
The firm says the estimated amount of the claim against the client is about 2 billion dollars based on market prices at the time.
It says the estimate could change depending on the unwinding of the transactions and fluctuations in market prices.
Officials say they are still assessing the size of the potential loss and its impact on financial results.
But they say it will not affect the financial soundness of Nomura or its subsidiary.
The effort to appease investors failed to stop the share price of Nomura Holdings tumbling on the Tokyo Stock Exchange.
Shares ended 16 percent lower on Monday.