Keeping to a tight schedule for the rollout of its electronic products to U.S. clients, Nomura Securities International on Thursday released its core suite of single-stock algorithms.
NSI, the U.S. brokerage arm of the giant Japanese bank, now offers eight algorithms. The core algos–part of the firm’s global ModelEx family of strategies–include: VWAP, TWAP, With Volume, Implementation Shortfall, Target Close, On Close, Target Open and On Open.
Next month, NSI plans to release more of its electronic trading products. These will include a dark pool aggregator and program trading algos, said Samuel Clapp, head of electronic trading sales at NSI.
"We feel good that we’re up and running quickly," he said. "We’ve had demand for these, not just here in the U.S., but also from our global client base."
NSI brought the framework for its suite of algorithms to the U.S. from Europe, according to Neal Goldstein, an executive director and U.S. head of electronic product development, systematic trading, at NSI. The algos are meant to complement a product offering NSI’s global customers have already been using Goldstein added.
"This is an extension of a fairly mature product offering that’s been successfully deployed in Europe," he said.
Aside from its global customers, Clapp added, NSI anticipates demand to span the entire institutional equities universe, from broker-dealers to hedge funds, institutional managers and pension funds. The firm would not share the number of users it has, or how many more it anticipates in the next 12 months.
NSI can also customize the algos according to its clients’ needs, Goldstein said. Clients can access the strategies through a growing list of third-party order management systems.
Nomura Group last fall acquired Lehman Brothers’ European and Middle Eastern investment banking and equities operations. The build-out of the U.S. brokerage’s electronic product offering picked up speed last November, when it hired Amit Manwani, a former Lehman exec who now heads quantitative and analytics products in the U.S.
Manwani works under Ciaran O’Kelly, the former head of global equities at Banc of America Securities. O’Kelly, a one-time Salomon Brothers block trader, joined NSI in July as head of equities, Americas.
With a new team at the helm, Nomura is building its electronic offering from the ground up.
