Nomura
Holdings is launching an aggressive rebuild of its foreign exchange (Forex)
options division following significant personnel departures in its key trading
hubs. According to Bloomberg, the move marks a critical pivot for the
Japanese financial giant’s derivatives strategy.
The bank’s
FX options team, which recently secured impressive gains from US
election-related trading positions, has experienced a notable exodus of talent
over the past twelve months. Industry sources indicate that approximately eight
traders have departed from the bank’s London and New York offices, primarily
consisting of professionals who joined since 2022.
In response
to these challenges, Nomura has appointed David Leigh, a veteran trader
previously with Deutsche Bank, to spearhead the rebuilding efforts. Under the
remaining team’s leadership, including Nagaraj Pangal, the unit has
demonstrated resilience by generating approximately $50 million in recent
months, largely attributed to successful US presidential election-related
trading strategies.
“As a
profitable business for Nomura, we will continue to invest,” a Nomura
spokesperson told Bloomberg.
The
division has already recorded $60 million in revenue since the start of its
fiscal year in April, building on last year’s $50 million performance. Market
participants observed a significant rally in the dollar index during the period
surrounding Donald Trump’s electoral victory, creating favorable conditions for
currency traders.
In the
meantime, Nomura
has witnessed a 400% increase in client algorithmic FX trading since
January 2023.
Hunt for FX Traders
Leigh’s
immediate priority involves recruiting experienced traders to strengthen the
depleted team. The FX options market, known for its complexity and reliance on
manual price construction, demands highly skilled professionals who can
navigate its intricacies.
The
reconstruction effort follows the departure of Kevin Connors, who joined Nomura
in 2021 to expand its currency trading operations. Before his exit in September
2024, Connors had emphasized the strategic importance of the FX options desk in
enhancing the bank’s client offerings.
The timing
of Nomura’s rebuilding initiative coincides with broader industry momentum, as
global FX options revenue reached $2.5 billion in 2024, surpassing the previous
year’s $2.3 billion.
New European CEO
Leigh is
not the only new appointment at Nomura. As reported by Finance Magnates
two months ago, John Tierney has been named CEO of Nomura Europe Holdings and
Nomura International, succeeding Jonathan Lewis after a decade-long tenure.
Jonathan
Lewis, who served as CEO since December 2014, played a critical role in
navigating the company through major challenges, including Brexit , the COVID-19
pandemic, and significant regulatory reforms.
While
stepping down as CEO, Lewis will remain involved in the organization. He will
transition to non-executive roles and chair several subsidiary boards,
including Nomura Financial Products Europe and Instinet Europe.
As for
Leigh himself, his employment history until November 2024 was limited to
Deutsche Bank, where he spent nearly two decades. Throughout this time, he was
involved in FX market trading, and for the past several months, he served as
Head of European Foreign Exchange .
Nomura
Holdings is launching an aggressive rebuild of its foreign exchange (Forex)
options division following significant personnel departures in its key trading
hubs. According to Bloomberg, the move marks a critical pivot for the
Japanese financial giant’s derivatives strategy.
The bank’s
FX options team, which recently secured impressive gains from US
election-related trading positions, has experienced a notable exodus of talent
over the past twelve months. Industry sources indicate that approximately eight
traders have departed from the bank’s London and New York offices, primarily
consisting of professionals who joined since 2022.
In response
to these challenges, Nomura has appointed David Leigh, a veteran trader
previously with Deutsche Bank, to spearhead the rebuilding efforts. Under the
remaining team’s leadership, including Nagaraj Pangal, the unit has
demonstrated resilience by generating approximately $50 million in recent
months, largely attributed to successful US presidential election-related
trading strategies.
“As a
profitable business for Nomura, we will continue to invest,” a Nomura
spokesperson told Bloomberg.
The
division has already recorded $60 million in revenue since the start of its
fiscal year in April, building on last year’s $50 million performance. Market
participants observed a significant rally in the dollar index during the period
surrounding Donald Trump’s electoral victory, creating favorable conditions for
currency traders.
In the
meantime, Nomura
has witnessed a 400% increase in client algorithmic FX trading since
January 2023.
Hunt for FX Traders
Leigh’s
immediate priority involves recruiting experienced traders to strengthen the
depleted team. The FX options market, known for its complexity and reliance on
manual price construction, demands highly skilled professionals who can
navigate its intricacies.
The
reconstruction effort follows the departure of Kevin Connors, who joined Nomura
in 2021 to expand its currency trading operations. Before his exit in September
2024, Connors had emphasized the strategic importance of the FX options desk in
enhancing the bank’s client offerings.
The timing
of Nomura’s rebuilding initiative coincides with broader industry momentum, as
global FX options revenue reached $2.5 billion in 2024, surpassing the previous
year’s $2.3 billion.
New European CEO
Leigh is
not the only new appointment at Nomura. As reported by Finance Magnates
two months ago, John Tierney has been named CEO of Nomura Europe Holdings and
Nomura International, succeeding Jonathan Lewis after a decade-long tenure.
Jonathan
Lewis, who served as CEO since December 2014, played a critical role in
navigating the company through major challenges, including Brexit , the COVID-19
pandemic, and significant regulatory reforms.
While
stepping down as CEO, Lewis will remain involved in the organization. He will
transition to non-executive roles and chair several subsidiary boards,
including Nomura Financial Products Europe and Instinet Europe.
As for
Leigh himself, his employment history until November 2024 was limited to
Deutsche Bank, where he spent nearly two decades. Throughout this time, he was
involved in FX market trading, and for the past several months, he served as
Head of European Foreign Exchange .
Feed from Financemagnates.com