Nomura Launches Impact Neutralization Trust Service

Nomura Securities Co., Ltd. (NSC) and The Nomura Trust and Banking Co., Ltd. (NTB), wholly owned subsidiaries of Nomura Holdings, Inc., today announced the launch of the Impact Neutralization Trust(the "Neutralization Trust") service. Today, Cross Marketing Group Inc. resolved to implement the Neutralization Trust service, the first company to do so in Japan.

The Neutralization Trust is a new trust scheme developed by NSC and NTB to respond to listed companies' need for their shares to be sold as part of efforts to improve their corporate governance, while taking into consideration market liquidity.

This includes increasing the number of tradable shares in light of the market restructuring by the Tokyo Stock Exchange (TSE), reducing cross-shareholdings as outlined in the Corporate Governance Code, dissolving parent-subsidiary listings and reducing the ownership ratios of stable shareholders.

Under the scheme, stocks held by shareholders, including large shareholders, are acquired using a trust set up by the issuing company and sold on the stock market over time based on market liquidity. 

Nomura is committed to helping clients increase their corporate value by providing services that contribute to better corporate governance.