According to reports, the worker has been taken into custody by the authorities in London in connection to an investigation into insider dealing by the FSA.
The employee is believed to have been arrested due to âpersonalâ activities rather than from any suspect work carried out on behalf of the bank.
Earlier in the week the FSA announced it had arrested a 37 year-old man and a 28 year-old woman as part of a probe into insider dealing.
Richard Bentley, industry vice-president of capital markets at Progress Software, said the arrest emphasises the increased focus on criminal activity by regulators.
âThis also highlights the increasing need for banks to deploy more sophisticated surveillance technologies themselves - the last thing banks like Mizuho want is to get the call from the regulator concerning activities of one or more of their employees.â
He continued: âWhile such technology cannot prevent the spreading of rumours, it can detect instances of unusual trading patterns and potential insider trades, allowing banks to be pro-active in reporting such incidents to the regulator rather than waiting for the call, and serving as a more visible deterrent to their own staff from carrying out such activities in the first place.â
The two arrests by the FSA were part of a joint investigation by the authorities in the UK and those in Houssen, Germany.
By Jim Ottewill