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Thursday, December 1, 2011

Daiwa to sell prime broker to Bank of Nova Scotia, (NYSE: BNS)

Japan's Daiwa Securities Group said it would sell a prime brokerage business serving hedge funds to Canada's Bank of Nova Scotia as part of a restructuring of its ailing overseas operations.Japan's No. 2 broker also announced on Thursday that it would change the status of its South Korean operations from a branch to a locally incorporated company, reflecting its strategy of focusing its overseas expansion in Asia.Daiwa said it would sell its synthetic prime brokerage arm, which is engaged in helping hedge funds apply leverage to their trading strategies by using share swaps and other means, to Bank of Nova Scotia for an undisclosed sum.The business has about 40 staff, the majority of which are based in London. It also has desks in Hong Kong and New York.

The Bank of Nova Scotia (the Bank) is a diversified financial institution. The Bank Of Nova Scotia (NYSE: BNS): fell by 1.51% or $-0.76/share to $49.61. In the past year, the shares have traded as low as $45.79 and as high as $62.33. On average, 612560 shares of BNS exchange hands on a given day and today's volume is recorded at 313745.