Nomura's Joinvest and the Competitive Japanese On-line Brokerage Industry (NMR)

| About: Nomura Holdings, (NMR)

Reuters Tokyo published a good article today ("Nomura eyes Y4 trln online trading volume") summarizing Nomura Holdings' (NMR) forthcoming standalone on-line brokerage called Joinvest Securities. New information shows that Joinvest will aim to handle 4 trillion yen (US$34b) of trades per month by March 2007.

That size volume would put Joinvest in direct competition with Matsui Securities and Rakuten Securities, the 2nd and 3rd largest Japanese on-line brokers by market share. E*Trade is well ahead of the pack in handling 10 trillion yen worth of trades per month with 1.1 million clients, versus Joinvest's target of 500k clients by next March. Joinvest will certainly have its work cut out for it but its association with Nomura, even if not directly by name, will give it some clout.

Reuters also points out that Nomura's rival conventional brokers Daiwa Securities Group Inc. (OTC:DSECY) and Nikko Cordial Corp. (OTC:NIKOY) have been slow to embrace the Internet.

The key statistic to remember as Reuters points out: Retail investors account for 40 percent of the activity on Japan's exchanges, and they make four-fifths of their trades online.

Click here for a link to the full-text Reuters article.

NMR 1-yr chart: