Nomura Halts Dealings with Segantii Amid Insider Trading Charges

Nomura Halts Dealings with Segantii Amid Insider Trading Charges

Luisa Martinez
2 min read

Nomura Takes Cautionary Stance on Dealing with Segantii Amid Insider Trading Charges

Nomura Holdings, a prominent Japanese financial firm, has made the decision to cease expanding its business with Segantii Capital Management, a Hong Kong-based hedge fund. This action comes in the wake of insider trading allegations leveled against Segantii, prompting Nomura to refrain from increasing leverage or initiating new positions with the firm at this time. This development mirrors a similar move made by JPMorgan Chase. The decision by prime brokers to reassess their connections with Segantii following the charges adds to the significance of Nomura's actions. Both Nomura and Segantii have opted not to provide comments on the unfolding situation.

Key Takeaways

  • Nomura Holdings Inc. limits dealings with Segantii Capital Management Ltd.
  • Move follows Segantii being charged with insider trading by Hong Kong authorities.
  • Nomura won't add more leverage or new positions to dealings with Segantii for now.
  • Similar decision reportedly made by JPMorgan Chase & Co.
  • Segantii and Nomura decline to comment on the matter.


Nomura Holdings' decision to halt increasing dealings with Segantii Capital, following insider trading charges, affects both firms. This move by Nomura and JPMorgan Chase signals a cautious approach by prime brokers towards tainted hedge funds, with potential consequences for Segantii's ability to raise capital and negotiate favorable terms.

In the short term, Segantii may face reduced liquidity and higher costs, while Nomura protects its reputation. Long term, this could encourage stricter risk management policies among financial institutions, potentially increasing scrutiny on hedge fund partnerships.

Japan and Hong Kong's financial markets may also experience ripple effects, as trust in hedge fund practices is reevaluated. This development highlights the importance of strong compliance and ethics programs within financial organizations to maintain business relationships and protect market integrity.

Did You Know?

  • Insider Trading: An illegal practice involving trading securities based on material, nonpublic information about the company in question, breach of trust and fiduciary duty. Segantii Capital Management Ltd. has been charged with insider trading by Hong Kong authorities.
  • Leverage: The use of various financial instruments or borrowed capital to amplify the potential return of an investment. In this scenario, Nomura Holdings Inc. has decided not to add more leverage to its dealings with Segantii Capital Management Ltd., indicating a refrain from providing additional borrowed capital for investment purposes.
  • Prime Brokers: Financial institutions that provide services to hedge funds and large investors, including securities lending, trade execution, and risk management. In this case, prime brokers are assessing their positions with Segantii Capital Management Ltd. likely to minimize potential risks associated with the insider trading charges.

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