LONDON (Reuters) - The new chief executive of Oriel Securities, one of London’s niche stock broking and corporate finance advisory firms, wants to attract analysts and ramp-up its coverage of larger firms to plug gaps left by bulge-bracket rivals cutting back in Europe.
David Knox, who took over the reins on Thursday after joining from JP Morgan (JPM.N) in June, said the current market conditions, which have forced some large brokers to pull back in Europe, presented opportunities for his research team.
“We see capacity coming out and there are people exiting, but all the while clients are not getting the tailor-made advisory services they need and corporate clients don’t feel they are getting coverage,” said Knox.
He was also looking to “improve the quality of the people we have” before stressing that Oriel has made strides in its research coverage and now covers larger companies as well as small and mid-caps.
His comments came as Nomura, the Japanese investment bank with about 4,000 staff in Europe, sought to streamline its European business by merging its two brokers in the region.
Unveiling details of a $1 billion (628.6 million pounds) restructuring plan outlined last week, Nomura said on Thursday the combined European, Middle East and Africa region would account for 45 percent of the total cost savings target, with the Americas accounting for 21 percent.
Nomura and other banks such as Deutsche (DBKGn.DE) and UBS UBSN.VX have sought to cut costs in their European equities businesses by reducing headcount to counter the effects of slow trading this year.
Knox joined Oriel three months ago as interim chief executive from JP Morgan, where he worked for eight years and was latterly head of equity research.
Simon Bragg, a founder and former chief executive of Oriel, has been appointed head of corporate finance where he will take responsibility for corporate clients, the London-based broker said in a statement.
Editing by Greg Mahlich