Nomura to expand e-stock trading service

Tokyo

NOMURA Holdings Inc is expanding an electronic stock trading service that matches buyers and sellers seeking to make large transactions as asset managers switch to Japanese equities. Three Nomura officials will travel to the US in January to meet hedge funds, pension funds and asset managers to pitch the service, which enables big trades of Japanese companies' shares outside of the Tokyo Stock Exchange, said Joji Watanabe, head of execution at Japan's biggest brokerage.

Institutional investors are looking for ways to execute large orders without disrupting the market, especially after the exchange began allowing smaller price increments this year, said Mr Watanabe. Japan's Government Pension Investment Fund is shifting more of its assets to stocks from bonds to increase returns as Prime Minister Shinzo Abe tries to spark inflation.