Instinet to Handle Nomura Trading
September 6, 2012
Nomura Holdings said it will move all equity trading customers outside Japan onto trading platforms run by Instinet, a pioneer in electronic trading for institutions.
This will include both electronic trading and broker trading in stocks.
Nomura, which acquired Instinet in 2007, said the changeover will occur in the “coming months” and that “focused teams” will handle the switchover to “minimize disruption and ensure a smooth transition.’’
The move does not affect clients of Nomura’s Derivatives, Delta One, Convertibles, Prime Services and Futures and Options products. Also unaffected are current Instinet clients.
The move is part of a $1 billion restructuring that Nomura described last week. The company also launched a $1 billion restructuring a year ago, which cut 1,000 jobs.
Nomura is reworking its stock, bond and investment banking businesses after acquiring the Asian and European operations of Lehman Brothers, which failed during the credit crisis of 2008.
“Equity markets are being dramatically reshaped globally as a result of the current environment and the accompanying demand for transparent, agency-driven execution,’’ Benoit Savoret, Joint Head of Global Equities, said. As a result “we are combining the best of our superior technology platforms under Instinet.’’
Instinet is an agency-only broker serving about 1,500 asset management firms, hedge funds, insurance companies, mutual funds and pension funds.
Nomura’s direct market access business has offered its customers a range of electronic trading tools such as ModelEx algorithms, SmartDMA trading platfroms, smart and dark order routing, and low-latency communications.
Nomura said that Execution Services will now be handled in the Americas, Europe, Middle East, Africa and Asia, except for Japan, by Instinet.