Docstoc

2011-04-26-FXI=dollar

Document Sample
2011-04-26-FXI=dollar Powered By Docstoc
					FX Insights
FX Research and Strategy | G10


The dollar’s dark matter                                                                           26 April 2011
Over the last nine months the dollar has weakened significantly. The first part of                 Foreign Exchange Research & Strategy

the dollar weakness was driven by a shift in monetary policy expectations as the                   Contributing Strategists:
Fed geared up for QE2. Lately, the dollar has weakened beyond what rate
differentials would suggest. We conclude that higher oil prices as well as an under-               Jens Nordvig
                                                                                                   +1 212 667 1405
accumulation of dollars by central banks have been key factors. Meanwhile, the                     jens.nordvig@nomura.com
effect of fiscal tensions in the US is less clear. We envisage more two-way risk for
the dollar in the next 3-6 months as QE2 comes to an end and as the bull market                    Anish Abuwala
                                                                                                   +1 212 667 9934
for risky assets enters a very mature phase. But conditions are not yet in place for               anish.abuwala@nomura.com
a structural dollar recovery.
                                                                                                   This report can be accessed
                                                                                                   electronically via:
                                                                                                   www.nomura.com/research or on
Dark matter and recent USD weakness                                                                Bloomberg<NOMR>

Over the last nine months, the dollar has been on a clear weakening trend. Prior to
this period, the main source of volatility was swings in global risk sentiment, which
saw both periods of USD weakness and strength during H1 2010.
In order to analyze the drivers of the dollar weakening trend over the last nine
months, it is useful to pinpoint the part of USD weakness which can be attributed to
moves in relative monetary policy, as captured by shifts in rate differentials. Figure
1 shows a simple plot of our own broad USD index of G10 currencies along with a
similarly weighted index of interest rate differentials. As can be seen, the dollar has
broadly tracked global rate differentials since July 2010. Lately, however, the dollar
has weakened beyond what rate differentials alone would suggest.
We find it useful to decompose USD movements into moves explained by rate
differentials and a residual capturing other dollar drivers. We analyze this using a
cross-sectional regression model, which we run monthly. Figure 2 plots this ‘dollar
residual’. It shows a negative dollar residual in February and March and especially
April, when the residual was -3.2%. That is, a significant component of USD
weakness over the past several months cannot be explained by rates.




                                                               Figure 2. Monthly USD ‘residual’ moves not explained
Figure 1. Broad USD index vs. rate differentials
                                                               by changes in rate differentials
   %                                      Jan 2010 =                  %
 2.6                                            100      90      8

                                                         92      6
 2.5
                                                         94      4                                    Negative residual for
 2.4                                                                                                     five consecutive
                                                         96                                                        months
                                                                 2
 2.3                                                     98
                                                                 0
 2.2                                                     100
                                                                 -2
                                                         102
 2.1                        Rate differential (Rest of
                                                         104     -4
                            world - US)
 2.0                        USD vs. selected                     -6
                                                         106
                            crosses (rhs inverted)
 1.9                                                     108     -8
   Jul-10   Sep-10   Nov-10    Jan-11     Mar-11                  Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11

Source: Nomura.                                                Source: Nomura.


                                                                                                  Nomura Securities International, Inc.

            See Disclosure Appendix A1 for the Analyst Certification and Other Important Disclosures
Nomura | FX Insights                                                                                                               April 26, 2011



Figure 3. USD ‘residual’ returns vs. oil                           Figure 4. Non-USD reserve buying vs. USD ‘residual’
          %                                              %           15          3mth 'residual' USD                        -350
    10                                                       -40                 return vs. EUR
                                                             -30                                                            -280
                                                                     10          3mth non-USD
     5                                                       -20                 Intervention (rhs                          -210
                                                                                 inverted)
                                                             -10                                                            -140
                                                                      5
     0                                                       0                                                              -70

                                                             10       0                                                     0
     -5                                                      20                                                             70
                                                                      -5
                             USD 3mth return                 30                                                             140
    -10                      unexplained by rate moves       40                                                             210
                                                                     -10
                             Oil (3mth change) - rhs         50                                                             280
                             inverted
    -15                                                      60      -15                                                    350
      Jan-09    Jul-09     Jan-10    Jul-10    Jan-11                  Jan-05         Jan-07           Jan-09      Jan-11

Note: USD return removes changes attributable to moves in 2yr      Note: USD return removes changes attributable to moves in 2yr
rates. Source: Nomura.                                             rates. Source: Nomura.

Dark matter, oil, reserve diversification or fiscal concerns?
Beyond monetary policy dynamics, we focus on three main potential forces which
help explain USD weakness beyond the effect from relative monetary policy
shocks (shifts in rate differentials).

     Higher oil prices,

     Reserve diversification by global central banks,

     US fiscal concerns.
Starting with the oil effect, we have observed a clear negative correlation between
the dollar and oil prices at least since 2004. Figure 3 illustrates that there is also
co-movement between the part of dollar movement which cannot be explained by
monetary policy shifts and oil. We interpret this co-movement as linked to flow
effects—either from US energy imports or from so-called petrodollar flow. US crude
oil imports amounted to $250bn in 2010; hence a 30% increase in oil prices, as we
have observed over the last six months could trigger additional imports of $75bn
annually. Although, there are some offsetting exports, this is a meaningful impact
on net trade flows. In addition, there could be a petrodollar flow effect on capital
flow as higher income in oil producing countries (such as Russia and the Middle
East) tends to support the euro from both a trade and reserve flow perspective.
Turning to the influence of reserve diversification, Figure 4 plots our proprietary
measure of central bank accumulation of non-USD currencies along with the dollar
residual (here shown as the portion of EUR/USD moves which cannot be
explained by monetary policy shifts). Here too we see some co-movement
between the dollar residual and the pace of accumulation of non-dollar currencies
(inverted on the axis). For example, low central bank accumulation of non-dollar
currencies in late 2008 and in mid-2010 coincided with a positive dollar residual (i.e.
the dollar was stronger than rates alone would have predicted in those periods).
Moreover, the recent strong pace of non-dollar reserve accumulation (at a pace of
$200-300bn per quarter), has coincided with negative dollar residuals. There could
be causality in both directions. But if inflows into EM countries are primarily funded
in USD, central bank reserve diversification should support G10 currencies such as
EUR, AUD and CAD. In this context, we note that the pace of accumulation of non-
dollar currencies over the past two quarters has been elevated, at around 90bn per
month, although not outside of the historical range.
In relation to the impact of rising concerns about the US fiscal situation on the
dollar, the evidence is mixed. First, US CDS spreads show a spike of 7bp on the
day of the S&P announcement (Figure 5), from 42bp to 49bp. However, the spread
has not broken out of the range of the last few months. Even relative to Germany,
the US CDS spread remains within the range of the last 1-2 years.


                                                                      2
Nomura | FX Insights                                                                                                         April 26, 2011



Figure 5. US and German 5yr CDS                              Figure 6. Daily 10yr UST term premium
        bp                                                              %
   65                                                           1.4
                           US CDS
   60                                                           1.2
                           German CDS
                                                                    1
   55
                                                                0.8
   50
                                                                0.6
   45                                                           0.4

   40                                                           0.2
                                                                    0
   35
                                                               -0.2
   30                                                          -0.4
   25                                                          -0.6
    Jan-10              Jul-10             Jan-11                   Jan-09    Jul-09    Jan-10      Jul-10     Jan-11


Source: Bloomberg, Nomura.                                   Note: Term premium is Kim-Wright proxy. Source: Nomura.

Second, the term premium in the 10yr Treasury bond, based here on a proxy of the
Fed’s Kim-Wright model, has shifted higher since November, but again has not
broken out of its historical range quite yet (Figure 6).
On one hand, these measures of the risk premium linked to fiscal tensions only
show mild tension, suggesting that the fiscal risk premium is not yet a major driver
of USD weakness. The price action in the Treasury market on following the S&P
outlook downgrade points in the same direction—towards still orderly conditions.
On the other hand, it is possible that the dollar could weaken due to fiscal concerns,
even if indicators of risk premia in the Treasury/CDS market are not flashing red.
This would happen in a situation where default is not in the cards, but where there
is an element of debt monetization; and the current QE2 policy does involve money
financing of government debt. It is hard to dismiss that this is playing a role in the
current dollar weakening trend, both through private sector portfolio rebalancing
effects and asset allocation decision by global central banks (more caution on USD
holdings). However, this policy has not been feeding into any outsized shift in
inflation expectations at this point. US 10yr breakeven inflation has moved up to
2.6%, up around 50bp from its level in Q4. But most of this increase has followed
the global trend. For example, eurozone break-even inflation is also up 40bp over
the same period.
Finally, it is instructive to look at recent moves compared to speculative positioning
(Figure 8). We note that Dollar shorts in the futures market are elevated, but not
higher than the levels reached in October and February, and not as extreme in
relation to open interest as back in 2007-2008. All told, recent dollar weakness has
not yet been matched by a large further accumulation of dollar shorts in the futures
market.

Figure 7. Weekly US fund flow into foreign assets            Figure 8. Net USD positioning on IMM
    $bn                                                                 $bn
  12                                                           30                                                       90
  10                                                                                                                    88
                                                               20
   8                                                                                                                    86
                                                               10
   6                                                                                                                    84
   4                                                            0                                                       82
   2                                                           -10                                                      80
   0                                                                                                                    78
                                                               -20
   -2                                                                                                                   76
                                                               -30
   -4                                                                                  USD positioning (lhs)            74
   -6                                                          -40                                                      72
                                                                                       DXY (rhs)
   -8                                                          -50                                                      70
   May-10    Jul-10    Sep-10    Nov-10   Jan-11    Mar-11       Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11


Source: EPFR, Nomura.                                        Source: CFTC, Nomura.


                                                                3
Nomura | FX Insights                                                                      April 26, 2011


Conclusion
The dollar has been on a clear weakening trend over the last nine months. The first
part of the trend coincided with the Fed moving towards renewed easing and
initiating QE2. But the second part of the weakness from December to now has
been driven by other forces. Higher rates outside the US, especially in Europe
have played a role, but there is still a significant residual effect. That is to say,
dollar weakness cannot be explained by rate differentials alone.
In our view, higher oil prices and an under-accumulation of dollars by global central
banks are key elements in the explanation of dollar underperformance. The effect
from concerns about the US fiscal outlook is less clear; tensions in the Treasury
market have so far been mild and there is little evidence that monetization of debt
is spilling over into rising inflation expectations. Nevertheless, the flow effect from
QE2 is likely to have played a role through portfolio rebalancing effects.
Over the next 3-6 months, we expect more two-way risk for the dollar versus G10
currencies, as QE2 comes to an end and as the rally in global risk assets enters a
very mature phase, impacting global capital flows. Moreover, the effect from higher
oil prices and rising rates in Europe may soon be peaking. Hence, the risk of short-
covering dollar rallies is probably rising as we enter May-June.
Nevertheless, we don’t see the conditions yet in place for a more structural dollar
recovery. Persistent slack in the US economy and weak growth in construction is
likely to keep monetary policy accommodative for the time being. Moreover, the US
is currently on an unsustainable long-term fiscal path, and we don’t expect a
political solution in the near-term. Finally, while the dollar is getting cheap on key
valuation metrics, this has yet to feed into improved trade performance in a way
which has a decisive impact on growth.
Coming months are likely to see more two-way risk after an unusually extended
bear-run. But the conditions for a more structural dollar recovery do not appear to
be in place yet.




                                                            4
Nomura | FX Insights                                                                                            April 26, 2011


Selected recent research from G10 FX Strategy

20/04/2011             Capital Flow Monitor (Reserves): Weak USD reserve accumulation persists in Q1

15/04/2011             Strategic Currency Views: The Norwegian krone: The case for outperformance

14/04/2011             FX Insights: JPY: Update on key FX flows

13/04/2011             FX Insights: EUR: What next after 1.45?

05/04/2011             FX Insights: Eurozone Sovereign debt restructuring: Implications for bank capital and the Euro

04/04/2011             FX Insights: What we learned about the dollar in Q1

18/03/2011             FX Insights: The history of coordinated FX interventions

17/03/2011             FX Insights: Toshin flow: Outflow to slow, but repatriation is rare

03/03/2011             FX Insights: CHF: European gold?

28/02/2011             Strategic Currency Views: The UK pound: Gilt flows to assist

24/02/2011             Strategic Currency Views: The Swedish Krona - Party winding down

13/01/2011             FX Insights: The pivotal role of Spain - Part II

17/12/2010             FX Insights: What the US trade balance tells us about the USD

29/11/2010             FX Insights: EUR outlook: The pivotal role of Spain

15/11/2010             FX Insights: Measuring the risk premium on the euro




                                                                  5
Nomura | FX Insights                                                                                                                           April 26, 2011


                                                            Disclosure Appendix A1
ANALYST CERTIFICATIONS
We, Jens Nordvig and Anish Abuwala, hereby certify (1) that the views expressed in this report accurately reflect our personal views about any
or all of the subject securities or issuers referred to in this report, (2) no part of our compensation was, is or will be directly or indirectly related to
the specific recommendations or views expressed in this report and (3) no part of our compensation is tied to any specific investment banking
transactions performed by Nomura Securities International, Inc., Nomura International plc or any other Nomura Group company.
Additional Disclosures required in the U.S.
Principal Trading: Nomura Securities International, Inc and its affiliates will usually trade as principal in the fixed income securities (or in related
derivatives) that are the subject of this research report. Analyst Interactions with other Nomura Securities International, Inc Personnel: The
fixed income research analysts of Nomura Securities International, Inc and its affiliates regularly interact with sales and trading desk personnel
in connection with obtaining liquidity and pricing information for their respective coverage universe.
VALUATION METHODOLOGY
Nomura’s fixed income credit strategists and analysts use relative value as their primary approach for forming the basis of buy, hold and sell
recommendations. This valuation methodology analyzes spread differences between an appropriate benchmark security or index and the
security being discussed. Relative value can compare different maturities within the same capital structure, different collateral/seniority structure
within the same capital structure or a unique opportunity associated with a debt security. It is also common for a strategist/analyst to recommend
an asset swap—a buy and sell recommendation between two securities from the same issuer, tranche or sector based on the relative value of
where the securities trade at a given point in time.
A buy recommendation on an individual security reflects the analyst’s belief that the price/spread on the security will outperform selected
securities in the same industry as the issuer (peers). Outperformance can be the result of, but not limited to, improving fundamentals, trading
activity, a major rating agency upgrade, or the acquisition by an issuer with a higher credit rating. Similarly, hold and sell recommendations
represent the analyst’s belief that the security in question will perform in-line or substantially worse than its peers.

Online availability of research and additional conflict-of-interest disclosures:
Nomura Japanese Equity Research is available electronically for clients in the US on NOMURA.COM, REUTERS, BLOOMBERG and
THOMSON ONE ANALYTICS. For clients in Europe, Japan and elsewhere in Asia it is available on NOMURA.COM, REUTERS and
BLOOMBERG.
Important disclosures may be accessed through the left hand side of the Nomura Disclosure web page http://www.nomura.com/research or
requested from Nomura Securities International, Inc., on 1-877-865-5752. If you have any difficulties with the website, please email
grpsupport@nomura.com for technical assistance.
The analysts responsible for preparing this report have received compensation based upon various factors including the firm's total revenues, a
portion of which is generated by Investment Banking activities.

DISCLAIMERS
This publication contains material that has been prepared by the Nomura entity identified on the banner at the top or the bottom of page 1 herein
and, if applicable, with the contributions of one or more Nomura entities whose employees and their respective affiliations are specified on page
1 herein or elsewhere identified in the publication. Affiliates and subsidiaries of Nomura Holdings, Inc. (collectively, the 'Nomura Group'), include:
Nomura Securities Co., Ltd. ('NSC') Tokyo, Japan; Nomura International plc, United Kingdom; Nomura Securities International, Inc. ('NSI'), New
York, NY; Nomura International (Hong Kong) Ltd., Hong Kong; Nomura Financial Investment (Korea) Co., Ltd., Korea (Information on Nomura
analysts registered with the Korea Financial Investment Association ('KOFIA') can be found on the KOFIA Intranet at http://dis.kofia.or.kr );
Nomura Singapore Ltd., Singapore (Registration number 197201440E, regulated by the Monetary Authority of Singapore); Nomura Securities
Singapore Pte Ltd., Singapore (Registration number 198702521E, regulated by the Monetary Authority of Singapore); Capital Nomura Securities
Public Company Limited; Nomura Australia Ltd., Australia (ABN 48 003 032 513), regulated by the Australian Securities and Investment
Commission and holder of an Australian financial services licence number 246412; P.T. Nomura Indonesia, Indonesia; Nomura Securities
Malaysia Sdn. Bhd., Malaysia; Nomura International (Hong Kong) Ltd., Taipei Branch, Taiwan; Nomura Financial Advisory and Securities (India)
Private Limited, Mumbai, India (Registered Address: Ceejay House, Level 11, Plot F, Shivsagar Estate, Dr. Annie Besant Road, Worli, Mumbai-
400 018, India; SEBI Registration No: BSE INB011299030, NSE INB231299034, INF231299034, INE 231299034).
THIS MATERIAL IS: (I) FOR YOUR PRIVATE INFORMATION, AND WE ARE NOT SOLICITING ANY ACTION BASED UPON IT; (II) NOT TO
BE CONSTRUED AS AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITY IN ANY JURISDICTION WHERE
SUCH OFFER OR SOLICITATION WOULD BE ILLEGAL; AND (III) BASED UPON INFORMATION THAT WE CONSIDER RELIABLE.
NOMURA GROUP DOES NOT WARRANT OR REPRESENT THAT THE PUBLICATION IS ACCURATE, COMPLETE, RELIABLE, FIT FOR
ANY PARTICULAR PURPOSE OR MERCHANTABLE AND DOES NOT ACCEPT LIABILITY FOR ANY ACT (OR DECISION NOT TO ACT)
RESULTING FROM USE OF THIS PUBLICATION AND RELATED DATA. TO THE MAXIMUM EXTENT PERMISSIBLE ALL WARRANTIES
AND OTHER ASSURANCES BY NOMURA GROUP ARE HEREBY EXCLUDED AND NOMURA GROUP SHALL HAVE NO LIABILITY FOR
THE USE, MISUSE, OR DISTRIBUTION OF THIS INFORMATION.
Opinions expressed are current opinions as of the original publication date appearing on this material only and the information, including the
opinions contained herein, are subject to change without notice. Nomura is under no duty to update this publication. If and as applicable, NSI's
investment banking relationships, investment banking and non-investment banking compensation and securities ownership (identified in this
report as 'Disclosures Required in the United States'), if any, are specified in disclaimers and related disclosures in this report. In addition, other
members of the Nomura Group may from time to time perform investment banking or other services (including acting as advisor, manager or
lender) for, or solicit investment banking or other business from, companies mentioned herein. Furthermore, the Nomura Group, and/or its
officers, directors and employees, including persons, without limitation, involved in the preparation or issuance of this material may, to the extent
permitted by applicable law and/or regulation, have long or short positions in, and buy or sell, the securities (including ownership by NSI,
referenced above), or derivatives (including options) thereof, of companies mentioned herein, or related securities or derivatives. For financial
instruments admitted to trading on an EU regulated market, Nomura Holdings Inc's affiliate or its subsidiary companies may act as market maker
or liquidity provider (in accordance with the interpretation of these definitions under FSA rules in the UK) in the financial instruments of the issuer.
Where the activity of liquidity provider is carried out in accordance with the definition given to it by specific laws and regulations of other EU
jurisdictions, this will be separately disclosed within this report. Furthermore, the Nomura Group may buy and sell certain of the securities of
companies mentioned herein, as agent for its clients.
Investors should consider this report as only a single factor in making their investment decision and, as such, the report should not be viewed as
identifying or suggesting all risks, direct or indirect, that may be associated with any investment decision. Please see the further disclaimers in
the disclosure information on companies covered by Nomura analysts available at www.nomura.com/research under the 'Disclosure' tab.
Nomura Group produces a number of different types of research product including, among others, fundamental analysis, quantitative analysis
and short term trading ideas; recommendations contained in one type of research product may differ from recommendations contained in other


                                                                             6
                    Any authors named on this report are research analysts unless
Nomura | FX Insights                                                                                                                       April 26, 2011


types of research product, whether as a result of differing time horizons, methodologies or otherwise; it is possible that individual employees of
Nomura may have different perspectives to this publication.
NSC and other non-US members of the Nomura Group (i.e. excluding NSI), their officers, directors and employees may, to the extent it relates
to non-US issuers and is permitted by applicable law, have acted upon or used this material prior to, or immediately following, its publication.
Foreign-currency-denominated securities are subject to fluctuations in exchange rates that could have an adverse effect on the value or price of,
or income derived from, the investment. In addition, investors in securities such as ADRs, the values of which are influenced by foreign
currencies, effectively assume currency risk.
The securities described herein may not have been registered under the US Securities Act of 1933, and, in such case, may not be offered or
sold in the United States or to US persons unless they have been registered under such Act, or except in compliance with an exemption from
the registration requirements of such Act. Unless governing law permits otherwise, you must contact a Nomura entity in your home jurisdiction if
you want to use our services in effecting a transaction in the securities mentioned in this material.
This publication has been approved for distribution in the United Kingdom and European Union as investment research by Nomura International
plc ('NIPlc'), which is authorized and regulated by the UK Financial Services Authority ('FSA') and is a member of the London Stock Exchange. It
does not constitute a personal recommendation, as defined by the FSA, or take into account the particular investment objectives, financial
situations, or needs of individual investors. It is intended only for investors who are 'eligible counterparties' or 'professional clients' as defined by
the FSA, and may not, therefore, be redistributed to retail clients as defined by the FSA. This publication may be distributed in Germany via
Nomura Bank (Deutschland) GmbH, which is authorized and regulated in Germany by the Federal Financial Supervisory Authority ('BaFin'). This
publication has been approved by Nomura International (Hong Kong) Ltd. ('NIHK'), which is regulated by the Hong Kong Securities and Futures
Commission, for distribution in Hong Kong by NIHK. This publication has been approved for distribution in Australia by Nomura Australia Ltd,
which is authorized and regulated in Australia by the Australian Securities and Investment Commission ('ASIC'). This publication has also been
approved for distribution in Malaysia by Nomura Securities Malaysia Sdn Bhd. In Singapore, this publication has been distributed by Nomura
Singapore Limited ('NSL') and/or Nomura Securities Singapore Pte Ltd ('NSS'). NSL and NSS accepts legal responsibility for the content of this
publication, where it concerns securities, futures and foreign exchange, issued by their foreign affiliates in respect of recipients who are not
accredited, expert or institutional investors as defined by the Securities and Futures Act (Chapter 289). Recipients of this publication should
contact NSL or NSS (as the case may be) in respect of matters arising from, or in connection with, this publication. Unless prohibited by the
provisions of Regulation S of the U.S. Securities Act of 1933, this material is distributed in the United States, by Nomura Securities International,
Inc., a US-registered broker-dealer, which accepts responsibility for its contents in accordance with the provisions of Rule 15a-6, under the US
Securities Exchange Act of 1934.
This publication has not been approved for distribution in the Kingdom of Saudi Arabia or to clients other than 'professional clients' in the United
Arab Emirates by Nomura Saudi Arabia, Nomura International plc or any other member of the Nomura Group, as the case may be. Neither this
publication nor any copy thereof may be taken or transmitted or distributed, directly or indirectly, by any person other than those authorised to do
so into the Kingdom of Saudi Arabia or in the United Arab Emirates or to any person located in the Kingdom of Saudi Arabia or to clients other
than 'professional clients' in the United Arab Emirates. By accepting to receive this publication, you represent that you are not located in the
Kingdom of Saudi Arabia or that you are a 'professional client' in the United Arab Emirates and agree to comply with these restrictions. Any
failure to comply with these restrictions may constitute a violation of the laws of the Kingdom of Saudi Arabia or the United Arab Emirates.
No part of this material may be (i) copied, photocopied, or duplicated in any form, by any means; or (ii) redistributed without the prior written
consent of the Nomura Group member identified in the banner on page 1 of this report. Further information on any of the securities mentioned
herein may be obtained upon request. If this publication has been distributed by electronic transmission, such as e-mail, then such transmission
cannot be guaranteed to be secure or error-free as information could be intercepted, corrupted, lost, destroyed, arrive late or incomplete, or
contain viruses. The sender therefore does not accept liability for any errors or omissions in the contents of this publication, which may arise as
a result of electronic transmission. If verification is required, please request a hard-copy version.
Additional information available upon request.
NIPlc and other Nomura Group entities manage conflicts identified through the following: their Chinese Wall, confidentiality and independence
policies, maintenance of a Stop List and a Watch List, personal account dealing rules, policies and procedures for managing conflicts of interest
arising from the allocation and pricing of securities and impartial investment research and disclosure to clients via client documentation.

Disclosure information is available at the Nomura Disclosure web page:
http://www.nomura.com/research/pages/disclosures/disclosures.aspx




                                                                           7

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:101
posted:4/27/2011
language:English
pages:7