Reuters: Japan’s Nomura plans to suspend part of cash-prime brokerage business

Nomura Holdings Inc plans to suspend part of its cash-prime brokerage business after sustaining a $2.9 billion hit from the collapse of U.S. investment fund Archegos, a person familiar with the matter said on Wednesday.

The move comes after Nomura, Japan’s top brokerage and investment bank, reviewed its prime brokerage business and vowed to enhance risk management in the wake of the Archegos loss.

Specifically, Nomura plans to stop prime brokerage services using U.S. and European cash stocks, the source said. The person declined to be identified as the matter was private.

The bank will continue cash-prime brokerage services with Japanese and Asia stocks, as well as the prime brokerage business with U.S. stock derivatives, where the bank has strengths, the source said.

The full article is available at https://www.reuters.com/business/japans-nomura-plans-suspend-part-cash-prime-brokerage-business-source-2021-07-07/

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