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$2.9bn Archegos Hit Prompts Nomura to Rein in Cash-Prime Brokerage
Nomura plans to stop prime brokerage services using US and European cash stocks. Photo: Reuters

Japan’s top investment and brokerage bank had promised to look into its ‘risk management’ following the painful loss from the US fund’s collapse 


Nomura Holdings, stung by its $2.9 billion hit from the collapse of US investment fund Archegos, is to suspend part of its cash-prime brokerage, sources claimed on Wednesday.

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

Nomura plans to stop prime brokerage services using US and European cash stocks, the source said.


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The bank will continue its cash-prime brokerage services with Japanese and Asia stocks, as well as the prime brokerage business with US stock derivatives, where the bank is strong. Nomura declined to comment.

The partial suspension, first reported by Bloomberg, would have little impact on earnings, according to the source.

Despite the Archegos loss, Nomura chief executive Kentaro Okuda has said the bank has no plans to make major changes to its global business expansion strategy.


  • Reporting by Reuters


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Sean OMeara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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