Nomura Securities Co., Ltd.
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is a Japanese
financial services Financial services are service (economics), economic services tied to finance provided by financial institutions. Financial services encompass a broad range of tertiary sector of the economy, service sector activities, especially as concerns finan ...
company and a
wholly owned subsidiary A subsidiary, subsidiary company, or daughter company is a company completely or partially owned or controlled by another company, called the parent company or holding company, which has legal and financial control over the subsidiary company. Unl ...
of Nomura Holdings, Inc. (NHI), which forms part of the
Nomura Group is a financial holding company and a principal member of the Nomura Group, which is Japan's largest investment bank and brokerage group. It, along with its broker-dealer, banking and other financial services subsidiaries, provides investment, fin ...
. It plays a central role in the
securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...
business, the group's core business. Nomura is a financial services group and global investment bank. Based in
Tokyo Tokyo, officially the Tokyo Metropolis, is the capital of Japan, capital and List of cities in Japan, most populous city in Japan. With a population of over 14 million in the city proper in 2023, it is List of largest cities, one of the most ...
,
Japan Japan is an island country in East Asia. Located in the Pacific Ocean off the northeast coast of the Asia, Asian mainland, it is bordered on the west by the Sea of Japan and extends from the Sea of Okhotsk in the north to the East China Sea ...
, with regional headquarters in
Hong Kong Hong Kong)., Legally Hong Kong, China in international treaties and organizations. is a special administrative region of China. With 7.5 million residents in a territory, Hong Kong is the fourth most densely populated region in the wor ...
,
London London is the Capital city, capital and List of urban areas in the United Kingdom, largest city of both England and the United Kingdom, with a population of in . London metropolitan area, Its wider metropolitan area is the largest in Wester ...
, and
New York New York most commonly refers to: * New York (state), a state in the northeastern United States * New York City, the most populous city in the United States, located in the state of New York New York may also refer to: Places United Kingdom * ...
, Nomura employs about 26,000 staff worldwide; it is known as Nomura Securities International in the US, and Nomura International plc. in
EMEA Europe, the Middle East and Africa, commonly known by its acronym EMEA among the North American business spheres, is a geographical region used by institutions, governments and global spheres of marketing, media and business when referring to t ...
. It operates through five business divisions: retail (in Japan), global markets, investment banking, merchant banking, and asset management. Established December 25, 1925 in
Osaka is a Cities designated by government ordinance of Japan, designated city in the Kansai region of Honshu in Japan. It is the capital of and most populous city in Osaka Prefecture, and the List of cities in Japan, third-most populous city in J ...
, it is the oldest brokerage firm in Japan. It is named after its founder
Tokushichi Nomura II was a Japanese businessman, investor and politician. He was the founder of the Nomura Group ''zaibatsu'' and Nomura Securities, and served as a member of the House of Peers. Early life and family Nomura was born on August 7, 1878, in present-d ...
, a wealthy Japanese businessman and investor. On May 7, 2001, to plan for Nomura's restructuring as a holding company, the company was established to take over the financial division which was taken effect on October of that year.


History


Background (before 1925)

Nomura was founded by Tokushichi Nomura, father of Nomura Securities founder
Tokushichi Nomura II was a Japanese businessman, investor and politician. He was the founder of the Nomura Group ''zaibatsu'' and Nomura Securities, and served as a member of the House of Peers. Early life and family Nomura was born on August 7, 1878, in present-d ...
as a money changing business. This was just before the
Meiji Restoration The , referred to at the time as the , and also known as the Meiji Renovation, Revolution, Regeneration, Reform, or Renewal, was a political event that restored Imperial House of Japan, imperial rule to Japan in 1868 under Emperor Meiji. Althoug ...
, 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 The Russo-Japanese War (8 February 1904 – 5 September 1905) was fought between the Russian Empire and the Empire of Japan over rival imperial ambitions in Manchuria and the Korean Empire. The major land battles of the war were fought on the ...
; 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 (the present day
Resona Bank () is the holding company of , the fifth-largest banking group in Japan as of 2012. It is headquartered in the Kiba area of Koto, Tokyo. The main operating entities of the group are Resona Bank, a nationwide corporate and retail bank headqu ...
) 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. (NSC) was established in
Osaka is a Cities designated by government ordinance of Japan, designated city in the Kansai region of Honshu in Japan. It is the capital of and most populous city in Osaka Prefecture, and the List of cities in Japan, third-most populous city in J ...
, as a spin-off from Securities Dept. of Osaka Nomura Bank Co. (later known as Daiwa Bank and now
Resona Bank () is the holding company of , the fifth-largest banking group in Japan as of 2012. It is headquartered in the Kiba area of Koto, Tokyo. The main operating entities of the group are Resona Bank, a nationwide corporate and retail bank headqu ...
). NSC initially focused on the
bond market The bond market (also debt market or credit market) is a financial market in which participants can issue new debt, known as the primary market, or buy and sell debt security (finance), securities, known as the secondary market. This is usually in ...
. It was named after its founder
Tokushichi Nomura II was a Japanese businessman, investor and politician. He was the founder of the Nomura Group ''zaibatsu'' and Nomura Securities, and served as a member of the House of Peers. Early life and family Nomura was born on August 7, 1878, in present-d ...
, 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 Japanese may refer to: * Something from or related to Japan, an island country in East Asia * Japanese language, spoken mainly in Japan * Japanese people, the ethnic group that identifies with Japan through ancestry or culture ** Japanese diaspor ...
conglomerate, or
zaibatsu is a Japanese language, Japanese term referring to industrial and financial vertical integration, vertically integrated business conglomerate (company), conglomerates in the Empire of Japan, whose influence and size allowed control over signifi ...
, 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 The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District, Manhattan, Financial District of Lower Manhattan in New York City. It is the List of stock exchanges, largest stock excha ...
, followed five years later by its membership in the London Stock Exchange.


2001 to present

On October 1, 2001, Nomura adopted a
holding company A holding company is a company whose primary business is holding a controlling interest in the Security (finance), securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own Share ...
structure with the existing company rebranding to Nomura Holdings, Inc. and a newly-formed wholly-owned subsidiary of Nomura Holdings being established to take over the financing division which would retain the Nomura Securities name. In February 2007 it purchased the US based broker and trading technology provider
Instinet Instinet Incorporated is an institutional, agency-model broker that also serves as the independent equity trading arm of its parent, Nomura Group. It executes trades for asset management firms, hedge funds, insurance companies, mutual funds a ...
. In October 2008 Nomura acquired
Lehman Brothers Lehman Brothers Inc. ( ) was an American global financial services firm founded in 1850. Before filing for bankruptcy in 2008, Lehman was the fourth-largest investment bank in the United States (behind Goldman Sachs, Morgan Stanley, and Merril ...
' 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 (£138bn) assets under management according to the ''
Financial Times The ''Financial Times'' (''FT'') is a British daily newspaper printed in broadsheet and also published digitally that focuses on business and economic Current affairs (news format), current affairs. Based in London, the paper is owned by a Jap ...
''. During the
2008 financial crisis The 2008 financial crisis, also known as the global financial crisis (GFC), was a major worldwide financial crisis centered in the United States. The causes of the 2008 crisis included excessive speculation on housing values by both homeowners ...
, Nomura did not take any government bail-out money In 2010 Nomura acquired a stake in
Bank of Ireland Bank of Ireland Group plc () is a commercial bank operation in Ireland and one of the traditional Big Four Irish banks. Historically the premier banking organisation in Ireland, the bank occupies a unique position in Irish banking history. At ...
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 The Federal Reserve Bank of New York is one of the 12 Federal Reserve Banks of the United States. It is responsible for the Second District of the Federal Reserve System, which encompasses the New York (state), State of New York, the 12 norther ...
designated Nomura a
primary dealer A primary dealer is a firm that buys government securities directly from a government, with the intention of reselling them to others, thus acting as a market maker of government securities. The government may regulate the behaviour and number of i ...
for
Federal Reserve System The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of ...
open market operations In macroeconomics, an open market operation (OMO) is an activity by a central bank to exchange liquidity in its currency with a bank or a group of banks. The central bank can either transact government bonds and other financial assets in the open ...
and
U.S. Treasury The Department of the Treasury (USDT) is the Treasury, national treasury and finance department of the federal government of the United States. It is one of 15 current United States federal executive departments, U.S. government departments. ...
securities
auctions An auction is usually a process of Trade, buying and selling Good (economics), goods or Service (economics), services by offering them up for Bidding, bids, taking bids, and then selling the item to the highest bidder or buying the item from th ...
. 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. 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. On 15 June 2021, a colony of small-flowered tongue-orchids were found growing in the rooftop garden of Nomura's London HQ. The species, which is native to the Mediterranean Basin and Atlantic coast of Western Europe, was thought extinct in the UK, as no sightings of the plant had been recorded since 1989 prior to the discovery of the colony.


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 (EMEA). 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 Reuters ( ) is a news agency owned by Thomson Reuters. It employs around 2,500 journalists and 600 photojournalists in about 200 locations worldwide writing in 16 languages. Reuters is one of the largest news agencies in the world. The agency ...
reported that Nomura had raised $7 billion of extra funding through issuing additional shares. Nomura's four business lines (global markets,
investment banking Investment banking is an advisory-based financial service for institutional investors, corporations, governments, and similar clients. Traditionally associated with corporate finance, such a bank might assist in raising financial capital by und ...
,
merchant banking A merchant bank is historically a bank dealing in commercial loans and investment. In modern British usage, it is the same as an investment bank. Merchant banks were the first modern banks and evolved from medieval merchants who traded in commod ...
and
asset management Asset management is a systematic approach to the governance and realization of all value for which a group or entity is responsible. It may apply both to tangible assets (physical objects such as complex process or manufacturing plants, infrastr ...
) are coordinated globally but each European operating entity is incorporated and regulated separately and reports to local management as well as
Tokyo Tokyo, officially the Tokyo Metropolis, is the capital of Japan, capital and List of cities in Japan, most populous city in Japan. With a population of over 14 million in the city proper in 2023, it is List of largest cities, one of the most ...
-based business leads.


Presidents


References


External links


Nomura Securities Co.
(official website)
Reuters profile for Nomura
* ttp://www.ft.com/cms/s/0/bc63d094-9690-11de-84d1-00144feabdc0.html Nomura & acquired Lehman Bros operations moving to joint building in City of London – 6-year rent holiday(Financial Times article)
Overview of Nomura Securities European operation
(The Banker article)
Answers.com information on Nomura
(history of Nomura Securities) {{coord, 35, 41, 02, N, 139, 46, 32, E, region:JP_source:kolossus-jawiki, display=title Financial services companies established in 1925 Financial services companies established in 2001 Banks established in 1925 Banks established in 2001 Nomura Holdings Japanese companies established in 1925 Japanese companies established in 2001 Financial services companies based in Tokyo Investment banks Primary dealers