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June 12, 2023 - LINE Financial Corporation and Nomura Holdings ave announced that they have reached an agreement to restructure the financial services business of their joint venture, LINE Securities.
Nomura will take over the client brokerage accounts and LINE Securities will focus on margin-FX trading. Nomura has invested around 24 billion yen ($172 million) in the financial services joint venture with the messaging app operator which was set up in 2018.
As a result of the business restructure, LINE Securities will focus on foreign exchange margin trading services while management of clients’ brokerage accounts will be transferred to Nomura Securities Co. Ltd. (“Nomura Securities”). Client assets have been segregated and protected in trust accounts in accordance with laws and regulations and will not be affected in any way.
The restructuring is slated for completion in 2024. Any other matters requiring disclosure will be promptly announced once finalised.
1． Background to the business restructure
LINE Securities launched the Ichikabu service in August 2019, taking advantage of the vast user base and usability-focused UI/UX of LINE, and Nomura’s expertise in the financial services business. Ichikabu was primarily designed to meet the potential asset building needs of LINE users by enabling trading of Japanese stocks from one share. The company has released a diverse range of securities and related products and services through the LINE app, such as LINE FX (foreign exchange margin trading), LINE CFD (contracts for difference), and Tsumitate NISA. The services reached over 1.5 million accounts as of September 30, 2022. In addition, LINE Securities recorded over 570,000 accounts as of December 31, 2022, ranking first* in the industry for new FX accounts .
*LINE survey comparing net number of FX accounts newly opened between Jan–Dec 2022 from five companies. Five companies were GMO Click Securities, Gaika ex byGMO, Hirose Tusyo, Gaitame.com, Traders Securities
In light of changes in the business environment and the profit outlook for LINE Securities’ services, LINE Financial and Nomura agreed to the business restructure after considering the optimal allocation of resources. The two companies determined this was the best course of action to ensure LINE Securities’ continued growth and for their clients and all other stakeholders.
Moreover, LINE Group is seeking to further boost its earnings power and product creation as it merges with Yahoo Japan Corporation and Z Holdings Corporation among others, and makes other internal restructures. As part of its ongoing efforts to bolster its digital services through internal app development and enhanced online offerings, Nomura is looking to further invest operating capital into its own digital strategy to generate growth.
2． Details of the business restructuring
LINE Securities’ securities business will be transferred to Nomura Securities through a demerger. Once completed, Nomura Securities will provide the securities services while LINE Securities will continue to offer LINE FX.
The restructuring will mainly result in the following changes to LINE Securities’ services.
LINE Securities asks interested parties to refer to LINE Securities’ special website for more details on upcoming service closures and transfers to Nomura Securities, as well as LINE Securities’ ongoing provision of LINE FX.
3． Future plans
The parties will hold discussions in preparation for the 2024 completion of the business restructure and beginning of a new LINE Securities. The parties will promptly disclose any relevant matters related to the business restructure.
