Japanese brokerage Nomura has teamed up with Indonesian peer Verdhana to facilitate equities execution and research in the Southeast Asian nation.
The alliance, which awaits regulatory nod, will enable Nomura to access research coverage offered by Verdhana on more than 50 Indonesian stocks.
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Under the arrangement, Nomura research sales will retain coverage of its international clients.
At the same time, the firm will take the help of Verdhana’s sales team for market data and onshore know-how.
Nomura’s equity trading unit Instinet will delegate Verdhana as its onshore broker and route market orders in Indonesia.
The international clients of Nomura can avail the research generated by Verdhana under the former’s brand.
Nomura head of Execution Services of Asia ex-Japan Tetsuhiro Nishi said: “As one of the top destinations for Japanese investment, Indonesia is a critical part of Nomura’s Asia Pacific footprint.”
Nomura head of Global Markets of Asia ex-Japan Rig Karkhanis believes that the tie-up will improve Nomura’s “market positioning and competitive advantage”.
“Nomura’s international clients will benefit from enhanced research coverage of Indonesian stocks,” Karkhanis noted.
Last July, BNP Paribas struck a similar partnership, announcing that it will source equity research in the Asia Pacific from Morningstar.
The agreement struck between the two parties enables Morningstar to offer equity research for BNP Paribas in China, Hong Kong, Singapore, South Korea as well as Taiwan.
Nomura has also just boosted its Americas investment team.
