Nikko [Japan] and Knight/Trimark to set up securities JV
Monday January 17, 4:50 am Eastern Time
TOKYO, Jan 17 (Reuters) - Japan's major brokerage Nikko
Securities said on Monday that it had reached an agreement with
Knight/Trimark Group Inc (NasdaqNM:NITE - news), the biggest
market maker for U.S. equities trading, to set up a joint venture specialising in market making and dealing. The agreement reflects heightened competition in Japan among brokerages offering services for
individual investors, following a sharp recovery in Japanese equities and a liberalisation of stock commission fees.
Nikko Securities, which has a capital tie-up with U.S. Travelers Group Inc that merged with Citycorp to form Citygroup (NYSE:C - news), said in a statement that the joint venture will accept buying and selling
orders from brokerage houses whose customers are mainly individual investors.
The new firm will start its business as early as September, Nikko also said.
In order to survive the already severe competition in Japan's brokerage industry following financial deregulation, Nikko Securities has formed close ties with Citygroup, the No.1 U.S. financial services
firm.
Last November, Citygroup said it had agreed to acquire a 19 percent stake in Nikko Securities' online brokerage unit Nikko Beans.
Nikko Securities and Salomon Smith Barney, part of Citygroup, also has a joint venture firm that focuses on investment banking for corporate customers.
The new joint venture between Nikko Securities and Knight/Trimark will initially target companies listed on Japan's stock exchanges and registered on Japan's over-the-counter (OTC) market for smaller firms,
as well as firms to be listed on Nasdaq Japan mainly for start-up companies.
Nikko and Knight/Trimark plan to eventually make a commitment in market making for all stock issues and their options, Nikko said in a statement.
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