Nomura Holdings Invests in European Hedge Fund Brevan Howard to Create AI Tech for Wholesale Unit

nomuraJapanese financial holdings company, Nomura Holdings, also the largest brokerage in Japan has announced its new investments plans in a venture established by European Hedge Fund management company Brevan Howard, known as AIM2.

The hedge fund company, Brevan Howard manages assets for institutional investors around in the world. The AIM2 services were launched in 2015 with an objective of using a combination of data science and machine learning to create alpha strategies. Currently, AIM2 focuses on wholesale financial markets and is developing tools for participants in this sector. This latest direction is the direct result of collaboration between Nomura and AIM2, which started earlier last year.

The new tool will provide quotes and recommendations by using artificial intelligence (AI) and data science to analyse high-frequency historical and real-time data including client flows and market data, according to the statement released by the company. 

Commenting on the partnership, Steve Ashley, Global Head of Wholesale at Nomura, said:

“The AIM2 team has a strong combination of data scientists and capital market experts and has built an industry-leading AI engine that we will use across all asset classes to enhance the client experience and increase market share in flow products. This solution will also form part of our plans to accelerate Nomura’s Wholesale digital transformation.”

Nomura’s wholesale division is made up of its Global Markets segment, offering research, sales, and trading of global securities such as FX, equities, rates, Investment Banking which offers capital raising, advisory services or more.

Today’s announcement comes less than a month after Nomura reported its third-quarter earnings for the 2019 fiscal year, in which the firm reported a loss due to large-write-offs in its wholesale division. For Brevan Howard, this investment is a huge deal as it will provide a much-needed boost as the firm has reported consecutive two quarterly losses.