Nomura Opens New U.S. Stock Trading, Research Desk

Nomura Holdings Inc., the Tokyo-based brokerage that’s expanded its global workforce by almost half in two years, expanded U.S. equity trading and introduced stock research in New York to compete for a bigger market share in the Americas.

The company’s U.S. unit, Nomura Securities International Inc., now provides customers with “full capabilities” to trade stocks, exchange-traded funds, convertible bonds and derivatives, according to an e-mailed statement from Japan’s largest brokerage. Michael Nathanson, head of U.S. media-equity research, initiated coverage on companies including Walt Disney Co. and CBS Corp.

All securities will trade using the same trading technology and infrastructure, according to the firm. Customers can use Nomura’s electronic trading products and algorithms, or computer-driven strategies, to transact stocks, according to the statement.

Nomura has almost doubled its entire New York staff in a year to about 1,800 and boosted the equities team to 430 from about 50 in early 2009, according to Peter Truell, a Nomura spokesman. The company hired Bank of America Corp.’s Ciaran O’Kelly in July 2009 as head of equities for the Americas. The firm said in May that it plans to offer research for 600 companies in the U.S. in a bid to boost revenue from the world’s biggest equity market.

Goldman Sachs, Lazard

Nomura hired Bank of America’s Michael Rietbrock as head of U.S. equity research in March. In addition to Nathanson, Nomura has hired 10 analysts over the last six months, including Brian Foran of Goldman Sachs Group Inc. as a senior analyst covering U.S. banks and Harry Curtis of Lazard Capital Markets to cover the U.S. gaming, hotel and leisure industries.

Nathanson initiated coverage of CBS, Disney, News Corp. and Viacom Inc. with “buy” ratings and Time Warner Inc., Discovery Communications Inc. and Scripps Networks Interactive at “neutral.”

“The market’s concern over both the macroeconomic outlook and the threat of ‘cord cutting’ (trading paid TV for Web- delivered video) has created an attractive opportunity for investors to buy U.S. media stocks,” Nathanson and analyst Brian Nowak wrote in a note to clients.

Nomura ranks 15th among underwriters of U.S. investment- grade corporate bonds this year, its highest on record, according to data compiled by Bloomberg that shows rankings since 1999. The bank was 26th in 2009, the data show.

To contact the reporters on this story: Jeff Kearns in New York at jkearns3@bloomberg.net; Nina Mehta in New York at nmehta24@bloomberg.net.

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net.

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