Nomura says sorry for the ‘significant difficulties to investors’ its ETN redemption has caused
Tokyo — Nomura Holdings issued an apology after investors in a $300m product betting on low volatility were all but wiped out during this week’s stock-market turmoil. Japan’s biggest brokerage said on Wednesday that it had received inquiries from individual investors after its decision to redeem the exchange-traded notes (ETNs) at a 96% discount. "We sincerely apologise for causing significant difficulties to investors," its Nomura Europe Finance unit said in a statement a day earlier. Nomura’s Next Notes S&P 500 VIX short-term futures inverse daily excess return index ETN involved a bet against stock-market gyrations by moving in the opposite direction to a gauge of volatility. Its early redemption — the first of its kind in Japan — was triggered after the notes lost more than 80% of their value amid the global equity-market selloff. "This is a listed product, and we believe it can be bought by both individual and institutional investors," Nomura said in an e-mailed statement. It d...
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