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.
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