Nomura appointed the former head of UBS’s global equity research to run its European equity research after a major shake-up that led to nearly 20 employees being cut from its research team. Alan MacDonald, who was UBS’s head of global equity research from 2001 to 2005, now heads Nomura’s research in Europe, the Middle East and Africa, according to Financial News.
The move follows major cutbacks in Nomura’s coverage, including the elimination of its analysts covering the utilities, retail, pharmaceuticals and medical technology sectors. The reorganization also removed the former head of equity research, Graeme Pearson, and his deputy. Most of the firings occurred before bonuses were paid.
Nomura is said to be concentrating on sectors most of interest to its Asian clients. The cuts came after the bank announced plans to integrate its equities business with Instinet, the agency broking firm that pioneered electronic trading, in May 2012.
Nomura is known for its stop and go approach to equities, but, in the shrinking commission environment, all brokerage firms are feeling pressure on their equities businesses.