Global Markets Sales and Trading

GM Sales and Trading Commentary

This material has been prepared or distributed by individual sales or trading personnel of Nomura Securities International, Inc., and if applicable, with the contribution of one or more of its affiliates (“Nomura” or “we”) and is not a product of a Nomura research department. This material is not investment research as defined by US rules and regulations, the applicable rules in Hong Kong, and the European Economic Area. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations or needs of individual investors. This material does not fall within the definition of an analyst report as defined by the Japan Securities Dealer’s Association. It is intended for professional and institutional investors only, and is not intended for retail clients. Any questions or issues you may have in regard to this material should be addressed with your local sales representative.

This market commentary (including any summaries and trading calls) represents short-term ideas designed to take advantage of the most recent market fluctuations, which are subject to change without notice, and may differ from, or be inconsistent with the views of Nomura research analysts or other sales and trading personnel within the Firm. The trading calls, in particular, are based on the observations by the Firm’s trading and sales personnel of various market and trading data, including, but not limited to, trading volumes, oversold/undersold indicators and other technical information, market color, published news stories and Nomura research.  More information, however, is available upon request. 

All projections, valuations and statistical analysis are provided to assist the recipient in the evaluation of the matters described herein. They may be based on subjective assessments and assumptions and may use one among many methodologies that produce different results and, to the extent that they are based on historical information, they should not be relied upon as an accurate prediction of future performance. 

All prices, yields and opinions expressed are indicative only and are subject to change without notice. The trading desk generally makes a market or generally deals as principal in the financial instruments mentioned herein or in related securities, options or other derivative instruments. The trading desk may have accumulated a long or short position in the financial instruments or related derivative products that are the subject of this material. Nomura also may have acted as an underwriter of such securities or other products, and may currently be providing investment banking services to the issuers of such securities or products.

Opinions expressed are current opinions as of the date appearing on this material only and the information, including the opinions contained herein, are subject to change without notice. This material may have previously been or simultaneously communicated to Nomura’s agency and proprietary trading desks or other Nomura clients. You should assume that the trading desks make markets and/or currently maintain or establish positions in any of the securities mentioned above. The desk analysts from the sales and trading desks within NSI responsible for preparing this material have received compensation based on various factors including NSI’s total revenues, a portion of which is generated by its sales and trading desks.

This material is (1) for your information only; (2) not to be construed as an offer to sell or a solicitation of an offer to buy any of the securities or other products mentioned herein; and (3) based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Opinions expressed are current opinions as of the date appearing on this material only and the information, including the opinions contained herein, are subject to change without notice. Any projections, valuations or statistical analysis are provided to assist the recipient in the evaluation of the matters described herein. They may be based on subjective assessments and assumptions and may use methodologies that produce different results and, to the extent that they are based on historical information, they should not be relied upon as an accurate prediction of future performance.

Complete copies of any research report referenced, summarized or excerpted in this message and related disclosures are available on the Nomura Research website which can be accessed through the link below. These reports may contain dated information and are sent for historical purposes only. They should not be relied upon in substitution for the exercise of independent judgment, are intended for your use only and may not be transmitted to other parties. 

Nothing herein shall form the basis of or be relied on in connection with any contract or commitment whatsoever. Neither Nomura nor any other person accepts any liability whatsoever for any loss (howsoever arising and whether direct or consequential) from any use of the information contained herein or otherwise arising in connection herewith. 

Options and Derivative Products Disclosure

Derivative investments require investors to assess several characteristics and risk factors that may not be present in other types of transactions. You should consider the specific return and risk profile of a particular derivative investment before effecting, or agreeing to effect, any transaction. In reaching a determination as to the appropriateness of any proposed transaction, clients should undertake a thorough independent review of the legal, regulatory, credit, tax, accounting and economic consequences of such action. The information presented has been obtained from or based upon sources believed by the trader or sales person to be reliable, but none of Nomura or its employees, the trader or sales person represents or warrant its accuracy or completeness and is not responsible for losses or damages arising out of errors, omissions or changes in market factors.

Options involve risk and are not suitable for all investors. Please ensure that you have read and understood the current options risk disclosure document provided by the Options Clearing Corporation before entering into any options transactions. The Options Clearing Corporation's publication, "Characteristics and Risks of Standardized Options," is available by contacting your Nomura representative or at http://www.theocc.com/about/publications/character-risks.jsp. The risks of options trading should be weighed against the potential rewards. 

The Risks include but may not be limited to:

• Call or put purchasing: The risk of purchasing a call/put is that investors will lose the entire premium paid.
• Uncovered call writing: The risk of selling an uncovered call (including short call position in a ratio call spread) is unlimited and may result in losses significantly greater than the premium received.
• Uncovered put writing: The risk of selling an uncovered put (including short put position in a ratio put spread) is significant and may result in losses significantly greater than the premium received.
• Covered call or put writing: Selling a covered call or put limits the potential profit of a long or short stock position respectively.
• Call or put vertical spread purchasing (same expiration month for both options): The basic risk of effecting a long spread transaction is limited to the premium paid when the position is established.
• Call or put vertical spread writing (same expiration month for both options): The basic risk of effecting a short spread transaction is limited to the difference between the strike prices less the amount received in premiums.
• Call or put calendar spread purchasing (different expiration months & short must expire prior to the long): The basic risk of effecting a long calendar spread transaction is limited to the premium paid when the position is established.

Because of the importance of tax considerations to many options transactions, the investor considering options should consult with his/her tax advisor as to how taxes affect the outcome of contemplated options transactions. Supporting documents that form the basis of our recommendations are available on request. Commissions and taxes will affect the returns on option transactions and each leg of a multi-legged strategy will incur commission charges.

We do not provide legal, accounting or tax advice. In compliance with Internal Revenue Service Circular 230, we hereby notify you that any discussion of tax matters set forth herein was written in connection with the promotion or marketing of the matters described herein and was not intended or written to be used, and cannot be used by any person, for the purposes of avoiding tax-related penalties under federal, state or local tax law. Each person should seek legal, accounting and tax advice based on its particular circumstances from independent advisors.

Nomura and its affiliates 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. Nomura and its affiliates may make a market or deal as principal in the financial instruments or securities mentioned in this document or in options, futures, or other derivatives based thereon. In addition, Nomura and its affiliates, shareholders, directors, officers and/or employees may from time to time have long or short positions in such financial instruments or securities, or in options, futures, or other derivative instruments based thereon. 

This document is the sole proprietary material of Nomura and may not, in whole or in part, be (i) copied, photocopied, or duplicated in any form, by any means, or (ii) redistributed, posted, published, excerpted, or quoted without Nomura’s prior express consent. Further information on any of the securities mentioned herein may be obtained upon request. If this material 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 material, which may arise as a result of electronic transmission. If verification is required, please request a hard-copy version.

Nomura Securities International, Inc. is a registered broker-dealer in the United States and a member of SIPC. Nomura Securities International, Inc. is affiliated with Nomura Holdings, Inc., a publicly-traded company, and its subsidiaries and branches worldwide.

Nomura Global Financial Products, Inc. is a provisionally registered U.S. swap dealer subject to CFTC regulation and a U.S. OTC Derivatives Dealer subject to SEC regulations. 

© Nomura Securities International, Inc., and Nomura Global Financial Products, Inc., 2020. All rights reserved. Any unauthorized use, duplication, transmission or disclosure of this document is prohibited by law and may result in prosecution.