Japan’s Nomura Plans New Entity in Frankfurt as it Prepares for Brexit

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A new entity is being prepared by Nomura, a Japanese financial holding company, in Frankfurt as Brexit nears.

Nomura Holdings Inc <8604.T> is applying for a permit to run a new entity in Frankfurt, as Japan’s largest brokerage prepares for Britain’s exit from the European Union in 2019.

In a report on Tuesday, Nomura signalled the licence application and said it would be ready to provide continuous service to clients by the time Britain exits the alliance notwithstanding of the final terms of Britain’s exit from the EU.

It did not give any information on the function of the submitted entity, what form it would take, or on employment.

Several other banks are planning to shift their EU base to Frankfurt from London. Daiwa Securities Group <8601.T>, Japan’s second-largest brokerage, said last week it would set up a subsidiary in the German city.

Nomura had been taking into account its post-Brexit opportunities and choices and had said in April that Germany was a preeminent candidate in its plans. It had 3,026 employees in Europe at the end of March.

Frankfurt has been selling itself as a stable city for banks seeking to find places to branch out due to Brexit, while the German government and bureaucrats have discreetly welcomed those looking to relocate.

Britain’s future following Brexit talks to turn away from the trading bloc is more unpredictable than ever after an election where voters refused its Prime Minister Theresa May a majority in parliament.

Nomura bought Lehman Brothers’ equities and investment banking business in Europe and Asia in 2008 as part of their plans to expand from its domestic stronghold.

It posted in April its first foreign annual pretax profit in seven years.