Japan's global investment bank Nomura announced a strategic partnership in Indonesia for equities execution and research.
Under the agreement, Verdhana will provide Nomura with research coverage on over 50 Indonesian stocks, according to a media release on Monday. Nomura research sales will continue to own coverage of its international clients while relying on its local partner’s sales team for onshore expertise and market information.
Instinet, Nomura’s equities execution arm, will designate Verdhana as its onshore broker to route all Indonesia market orders through it. «This partnership presents an opportunity for Nomura to improve our market positioning and competitive advantage by teaming up with a leading Indonesian equities player,» said Rig Karkhanis, Head of Global Markets, Asia ex-Japan, Nomura.
Critical Part
The research produced by Verdhana will be distributed to Nomura’s international clients under the Nomura brand. Nomura and Verdhana will jointly service and target these clients, and a client engagement protocol will be developed to ensure coordination.
The links between Nomura’s home market, Japan, and Indonesia at both government and corporate levels, make it a natural extension of Nomura’s coverage of the region. «As one of the top destinations for Japanese investment, Indonesia is a critical part of Nomura’s Asia Pacific footprint,» Tetsuhiro Nishi, Head of Execution Services, Asia ex-Japan, Nomura, added.
