Nomura Securities
Nomura Securities Co., Ltd. is a wholly owned subsidiary of Nomura Holdings, Inc., which forms part of the Nomura Group. It plays a central role in the securities business, the Group's core business. Nomura is a financial services group and global investment bank. Based in Tokyo and with regional headquarters in Hong Kong, London, and New York, Nomura employs about 26,000 staff worldwide. It operates through five business divisions: retail, global markets, investment banking, merchant banking, and asset management.
Established December 25, 1925 in Osaka, it is the oldest brokerage firm in Japan. It is named after its founder Tokushichi Nomura II, a wealthy Japanese businessman and investor. Nomura Securities operates in Asia. In the US it is known as Nomura Securities International, and in EMEA it is Nomura International plc.
History
Background (before 1925)
Nomura was founded by Tokushichi Nomura, father of Nomura Securities founder Tokushichi Nomura II as a money changing business. This was just before the Meiji Restoration, the move to setting up a bank was a logical extension and progression of this business as times changed. Changes included the founding of stock exchanges in Tokyo and Osaka as the country became industrialised. Key amongst these changes was the Japanese government's decision to issue foreign currency denominated public bonds to fund the Russo-Japanese war; Nomura employed English speaking staff so that they could take on this international business.By 1906 Nomura had founded an in-house research department headed up by former Osaka newspaper journalist Kisaku Hashimoto. This was responsible for publishing the Osaka Nomura Business News with trading news, stock analysis and current economic trends. Research combined with a substantial newspaper advertising campaign helped raise the profile of Nomura. By 1917, Nomura had gone public and soon after Osaka Nomura Bank was set up, within this business there was a securities section to handle bond sales and underwriting.
Origins to 2001
On December 25, 1925, the Nomura Securities Co., Ltd. was established in Osaka, as a spin-off from Securities Dept. of Osaka Nomura Bank Co.. NSC initially focused on the bond market. It was named after its founder Tokushichi Nomura II, the son of Tokushichi Nomura and a wealthy Japanese stockbroking tycoon. He had earlier established Osaka Nomura bank in 1918, based on the Mitsui zaibatsu model with a capital of ¥10 million. Like the majority of Japanese conglomerate, or zaibatsu, its origins were in Osaka, but today Is based in Tokyo.By 1927, Nomura had opened a New York office. NSC gained the authority to trade stock in 1938, and went public in 1961. In 1981, the company became a member of the New York Stock Exchange, followed five years later by its membership in the London Stock Exchange.
2001 to present
On October 1, 2001 Nomura adopt a holding company structure with the establishment of Nomura Holdings, Inc. and Nomura Securities Co. became a fully owned subsidiary of Nomura Holdings.In February 2007 it purchased the US based broker and trading technology provider Instinet. In October 2008 Nomura acquired Lehman Brothers' business in the Asia Pacific region including Japan, Hong Kong and Australia; together with Lehman Brothers investment banking and equities business in Europe and the Middle East and hired a number of people from Lehman's fixed-income business. In 2007, Lehman international businesses were responsible for half of the bank's total revenue. The acquisition made Nomura the world's largest independent investment bank with Y20,300bn assets under management according to the Financial Times. According to Bloomberg, in the wake of the financial crisis, Nomura did not take any government bail-out money In 2010 Nomura acquired a stake in Bank of Ireland according to publicly available data.
In a bid to move the company's focus from Japan to global markets, the global headquarters for investment banking was moved out of Tokyo to London in April 2009 as part of a stated aim by Hiromi Yamaji, Nomura's chief executive of global investment banking to move the company's focus from Japan to global markets.
On July 27, 2009 the Federal Reserve Bank of New York designated Nomura a primary dealer for Federal Reserve System open market operations and U.S. Treasury securities auctions.
Tricorn Partners LLP was acquired on December 16, 2009 to further expand its investment banking business. Nomura operates across 18 exchanges globally and holds a number of primary dealerships. Nomura has been number one on the London Stock Exchange since the summer of 2007. In late May 2017, Nomura Securities paid for Venezuelan government bonds valued at $100 million, paying $30 million for the debt at a steep discount. In 2017, Nomura has chosen Frankfurt am Main, Germany as its new EU hub after brexit.
Operations
Nomura provides a range of services through the capital markets including equities and fixed income trading, brokerage, underwriting, offering, secondary offering and private placement of securities. The investment banking arm provides corporate and leveraged financing.Nomura previously made most of its profits in the Japanese retail banking market but has expanded its international investment banking capabilities.
Nomura divides its operations up into three regional areas, Americas, Asia-Pacific and Europe, Middle East & Africa. The American operations are predominantly focused on offices in the New York and New Jersey areas with additional offices in Toronto, Canada and Bermuda, employing 1,300 staff in the US; investment banking in the US is headed up by Glenn Schiffman. There are 32 offices across the Asia Pacific region headquarters are located in Hong Kong, including Australia, China, Hong Kong, Japan, Malaysia, Singapore and Taiwan. EMEA employs 4,500 people in 18 countries, the chairman is Colin Marshall and the CEO is Jeremy Bennett. In December 2009 Reuters reported that Nomura had raised $7 billion of extra funding through issuing additional shares.
Nomura's four business lines are coordinated globally but each European operating entity is incorporated and regulated separately and reports to local management as well as Tokyo-based business leads.