Nomura Holdings Inc (NMR) issued a press release following the market's close in Tokyo regarding its forthcoming wholly-owned subsidiary, Joinvest Securities. Originally I had heard Joinvest would launch in April but it will now be launching its website on May 14th and start receiving orders May 28th. In the press release it says Joinvest "aims to have 500,000 customer accounts by the end of March 2007 and plans to be profitable by the year ending March 31, 2008."
Despite already having an on-line trading service and offering personal brokerage services, Nomura management doesn't believe Joinvest will cannibalize commissions. A key strategy nonetheless of Joinvest is to be the low-cost leader in commissions and offer the widest variety of tradable products. I question Nomura's optimism on avoiding cannibalization but I do believe that it faces little threat of customers switching, especially if it can match or beat E*Trade Japan's commissions.
NMR 1-yr chart: