|Nomura Europe Holdings and Borut Miklavcic, the head of Nomura’s fixed-income proprietary trading desk, have teamed up to launch an internal hedge fund. According to Financial News, Nomura and Miklavcic jointly incorporated Nomura Cross Asset Strategies LLP and have been working over the past year on plans for the new hedge fund.|
Nomura will provide capital for the hedge fund but its launch has been held back by difficult market conditions. Additionally, to comply with the Dodd-Frank Act which prevents banks from trading with their own capital, Nomura can only seed the fund, but has till July 2014 to reduce its stake to 3% or less. Nomura plans to spin-off the hedge fund after it is operationally stable.