Daiwa London bond trading closes as company continues reform

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Daiwa Securities Group has closed its London principal-trading desk for convertible bonds as Japan’s second-largest brokerage reviews the profitability of its operations abroad.

Bloomberg News reports that the firm shut the business this month, Misato Kinoshita, a Tokyo-based spokeswoman, said by phone Wednesday, while declining to comment on the size of the trading operation in the U.K. city.

Daiwa is shifting its focus to domestic investment banking and retail brokerage services while scaling back overseas. The strategy has helped to bolster profitability and was one of the reasons Moody’s Investors Service raised the Tokyo-based company’s credit rating last week.

'This is part of structural reform that Daiwa has been progressing in order to stabilize its overseas businesses,' Kinoshita said. 'We will continue the reform.'

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Daiwa Closes London Convertible-Bond Principal Trading Desk

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