Nomura to Withdraw from Chicago Futures Business
Nomura Holdings, Japan's largest broker, said on Tuesday it planned to withdraw soon from the futures business in Chicago as it restructures its U.S. operations.
"As part of our continuing focus on core competencies in America, we have recently decided to realign certain futures business activities," Nomura said in a statement. "Consistent with that decision, our local subsidiary intends to wind down its futures business based in Chicago in the near future."
Nomura spokesman Michiyori Fujiwara said the company did not know yet when the withdrawal would take place. He also did not give details on the size or nature of its futures business in Chicago.
Nomura booked about 74 billion yen in pretax losses at its U.S. unit in the two quarters to June due to its exposure to the deteriorating subprime mortgage market.
It has been running down its balance of residential mortgage-backed securities, and has said it may pull out of the mortgage business as part of the reorganisation of its U.S operations.
Nomura had 1,217 employees in the United States as of the end of June.
Shares of Nomura were down 5.0%, hit by a Credit Suisse rating downgrade to "neutral" from "outperform".
Credit Suisse said Nomura's earnings environment would likely deteriorate due to growing turbulence in the stock market stemming from the subprime loan market mess.