Nomura

Nomura
Name	Nomura Holdings, Inc.
Native name	野村ホールディングス株式会社
Type	Public KK
Industry	Financial services
Founded	1925
Founder	Tokushichi Nomura II
Headquarters	Tokyo, Japan
Key people	Masaaki Kanda (CEO), Kentaro Okuda (Chairman)
Revenue	¥1.5 trillion (2023)
Num employees	26,000

Nomura

Nomura is a Tokyo-based global financial services group founded in 1925 by Tokushichi Nomura II, known for investment banking, securities brokerage, and asset management. The firm has played central roles in major capital markets, cross-border mergers and acquisitions, and sovereign debt transactions, interacting with institutions such as Bank of Japan, Ministry of Finance (Japan), International Monetary Fund, World Bank, and exchanges like Tokyo Stock Exchange and London Stock Exchange. Its activities have involved counterparties and clients including Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, Goldman Sachs, Morgan Stanley, Citigroup, and Deutsche Bank.

History

Founded by Tokushichi Nomura II in Osaka to trade in rice and securities, the company expanded through the Taisho and Showa eras, navigating events such as the Great Kantō earthquake, the Shōwa financial crisis, and postwar reconstruction under the Allied occupation. In the late 20th century it capitalized on Japan's asset price bubble of the 1980s, competing with houses like Daiwa Securities and Mizuho Financial Group, and later adapted after the 1990s "lost decade" and the Asian financial crisis including the 1997 Asian financial crisis. The firm pursued globalization in the 2000s, acquiring businesses tied to Lehman Brothers fallout and restructuring following the Global Financial Crisis (2007–2008), aligning with reforms influenced by regulators such as the Financial Services Agency (Japan), the Financial Conduct Authority, and the Securities and Exchange Commission.

Corporate Structure and Operations

The group is organized as a holdings company with distinct divisions: Investment Banking, Global Markets, Retail, and Asset Management, alongside a principal finance arm and research units that interface with entities like OECD, Asian Development Bank, and United Nations. Corporate operations include trading on platforms such as NASDAQ, New York Stock Exchange, and Singapore Exchange, compliance frameworks referencing standards from Basel Committee on Banking Supervision and connections to clearinghouses including LCH and Japan Securities Clearing Corporation. Risk management, treasury operations, and proprietary trading are coordinated with external auditors and firms like Deloitte, KPMG, and Ernst & Young.

Financial Services and Products

The company offers underwriting for equity and debt issuances, advisory for mergers and acquisitions, structured finance, derivatives, prime brokerage, and wealth management for retail and institutional clients including pension funds such as Government Pension Investment Fund (Japan), sovereign wealth funds, and insurers like Tokio Marine. Its asset management division manages mutual funds, ETFs, and alternative investments, collaborating with markets in Hong Kong, New York City, London, and Frankfurt. Product engineering has involved complex instruments related to interest rates, foreign exchange, credit default swaps, and equity-linked securities that traded alongside products from BlackRock, Vanguard, State Street, and major hedge funds.

Global Presence and Subsidiaries

With headquarters in Nihonbashi and major offices in London, New York City, Hong Kong, Singapore, Sydney, Dubai, and São Paulo, the group operates subsidiaries including brokerage, investment advisory, and research arms. Regional subsidiaries coordinate capital markets access in jurisdictions governed by entities such as Hong Kong Monetary Authority, UK Financial Conduct Authority, Securities and Exchange Commission, and Australian Prudential Regulation Authority. The corporate footprint has been extended via acquisitions and joint ventures with firms like Greentech Capital Advisors and collaboration on sovereign deals with ministries in Indonesia, Vietnam, and Chile.

Notable Transactions and Controversies

Noteworthy transactions include underwriting major IPOs on the Tokyo Stock Exchange and advisory roles in cross-border M&A involving Sony, SoftBank, Toyota Motor Corporation, and other multinational corporations. The firm has faced controversies including trading losses and compliance issues paralleling incidents at peers such as Barings Bank and UBS, regulatory fines under regimes like the Financial Conduct Authority and investigations by the Securities and Exchange Commission. Episodes involving risk management lapses prompted internal reform, board reshuffles, and settlements with counterparties including banks from South Korea, Taiwan, and United States jurisdictions.

Corporate Governance and Leadership

Governance follows Japanese corporate statutes and stock exchange listing rules, overseen by a board of directors and audit committee with independent directors and executive officers. Leadership transitions have included CEOs and chairpersons with backgrounds at major financial institutions and public service, interacting with policymakers at the Bank of Japan and Ministry of Finance (Japan). The company engages with shareholder activists and institutional investors such as BlackRock and Nomura Principal Finance counterparts, reporting under accounting standards like IFRS and offering disclosures to regulators including the Financial Services Agency (Japan).

Category:Financial services companies of Japan Category:Companies listed on the Tokyo Stock Exchange