Soon after Nomura Holdings got burned on the collapse of Archegos Capital Management, its executives vowed to revamp its prime brokerage.
Insiders and hedge funds are starting to grasp what that means for those operations in the US and Europe: there won’t be much left.
Nomura plans to keep its overseas derivatives business, which is particularly significant in the US, that person said. It would also keep Delta One trading in the US.
Within the Tokyo-based firm, executives privately predict its plan to rein in risks will shrink the prime brokerage unit in Asia — and curtail it much more dramatically in Europe and the US, where Nomura was relatively small but was attempting to expand.
The full article is available at https://www.bloomberg.com/news/articles/2021-06-08/nomura-prime-brokerage-cuts-seen-sparing-little-in-u-s-europe