Nomura to scale back loss-making brokerage venture with Line
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NOMURA Holdings plans to scale back a brokerage venture with messaging app operator Line Group amid a gloomier outlook for the business.
As part of the restructuring, Japan’s biggest securities firm will take over the management of client brokerage accounts while the venture, Line Securities, will focus on foreign-exchange margin trading services, the companies said on Monday (Jun 12).
The move marks another setback for Nomura, which had battled losses at the venture as it sought to obtain younger, tech-savvy clients. Last year, it pumped more money into the entity, which offered financial services via smartphones.
“In light of changes in the business environment and the profit outlook for Line Securities’ services, Line Financial and Nomura agreed to the business restructure after considering the optimal allocation of resources,” according to the statement.
The parties will hold talks to prepare for the completion of the overhaul in 2024 and the “beginning of a new Line Securities.” BLOOMBERG
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