Nomura Holdings has ditched its effort to restart a proprietary trading desk in London after less than two years. The short-lived initiative underscores how Japan's largest brokerage persisted with high-risk bets despite claims of a customer-focused overhaul.
Nomura Holdings attempted to revive a proprietary trading desk in London by hiring Pamela Massaad Scott and Jacky Leung early last year. The pair were tasked with making bets for the firm's own account, a practice restricted by U.S. and European regulators after the financial crisis. Massaad Scott reported directly to Nat Tyce, head of global markets for Europe, the Middle East and Africa, according to people familiar with the matter.
Earlier this year, Nomura officials decided to fold the fledgling desk into other parts of the markets business, some of the people said. Massaad Scott then left the bank in recent months, as shown in regulatory filings.
This short-lived effort highlights how Japan's biggest brokerage continued high-risk bets even as executives claimed an overhaul focused on serving customers. The move comes amid U.K.-Japan relations in the financial sector, with Nomura operating as a major player in brokerages and banks.