Japan's Nomura plans new entity in Frankfurt as it prepares for Brexit

[TOKYO] Nomura Holdings Inc is applying for a licence to operate a new entity in Frankfurt, as Japan's largest brokerage gears up for Britain's exit from the European Union in 2019.

In a statement on Tuesday, Nomura flagged the licence application and said it will be ready to provide uninterrupted service to clients by the time Britain exits the bloc regardless of the final terms of the departure.

It did not give any details on the function of the proposed entity, what form it would take, or on staffing.

Several other banks are preparing to shift their EU base to Frankfurt from London. Daiwa Securities Group, Japan's second-largest brokerage, said last week it would set up a subsidiary in the German city.

Nomura had been considering its post-Brexit options, and had said in April that Germany was a leading candidate in its plans. It had 3,026 employees in Europe at the end of March.

Frankfurt has been promoting itself as a stable city for banks seeking to relocate due to Brexit, while the German government and politicians have discreetly welcomed those looking to move.

Britain's future following Brexit talks to leave the trading bloc is more uncertain than ever after an election where voters denied its Prime Minister Theresa May a majority in parliament.

Nomura bought Lehman Brothers' equities and investment banking business in Europe and Asia in 2008 as part of a strategy to expand from its domestic stronghold.

It posted in April its first overseas annual pretax profit in seven years.

REUTERS