N.Avenue Co., Ltd., the operating company of CoinDesk JAPAN, will co-host the “Digital Securities Forum 2023” on Wednesday, December 13, 2023 with Nihon Keizai Shimbun.
While the emergence of the digital securities “Security Token (ST)” provides retail investors with new investment opportunities, it is also being discussed that there is a need to create an environment that allows investors to appropriately face new risks. We asked Nomura Securities Executive Officer Tomohisa Murakami, who is working to strengthen the company’s efforts to achieve this goal, about its efforts toward ST.
In charge of Investment Banking Products
Mr. Tomohisa Murakami
Joined Nomura Securities in 2000. He is assigned to the Financial Markets Department. Worked at a London corporation in 2003. After returning to Japan in 2008, he worked in global markets and investment banking both domestically and internationally, focusing on product development. He has been the syndicate manager since 2019 and assumed his current position from April 2022.
Efforts to establish ST in the market are accelerating
In the two years since full-scale public issuance began, various product formulation challenges have been undertaken, and some product areas are beginning to take root in the market. Digital technology has uncovered latent market needs that were difficult to meet using traditional frameworks, and the market is beginning to grow and change as a new market. For example, real estate ST, which attracts many retail investors to the digital securities (ST) market and drives market expansion, and support investment, where issuers provide social impact investment opportunities to their customers, are attracting a certain number of investors. It has grown into a product that has gained recognition from the public and can be continued to be published.
While new product ideas that take advantage of digital characteristics will continue to be tested, we believe that efforts will be made to develop products that are already established in the market into products that are more convenient and liquid for investors. . For example, in terms of convenience, it is likely that the design and information disclosure for each product group will become more standardized, and this will clarify the points that investors should compare and consider even if the issuers are different. In addition, in terms of liquidity, starting with the launch of the ST exchange being prepared by Osaka Digital Exchange (ODX), systems and practices are expected to improve, and trends that will lead to future developments are expected to accelerate.
Strengthening the system for explaining new investment risks
With the advent of digital securities, it is now possible to introduce risk-return profiles and investment angles that were previously unavailable to investors. While this expands options for investors, it also exposes them to unfamiliar risks. Based on this understanding, in order to develop a healthy market for digital securities, which is expected to become increasingly diversified, we will carefully select and appropriately handle products, especially for products aimed at retail investors. We would like to strengthen our system to ensure accurate explanations.
At Nomura Securities, we work with a high level of awareness as a member of the market, not only to develop new products, but also to ensure high-quality product design, information disclosure, and explanations to investors. We hope that this forum will be an opportunity for you to understand the current state of the market and its future possibilities.
｜Reprinted from Nihon Keizai Shimbun “Digital Securities Forum 2023 Advertising Special” dated December 5, 2023
｜Image: CoinDesk JAPAN