Global Markets Company
Providing solutions using market products to customers and managing a stable portfolio in ALM/ Investment businesses
The Global Markets Company conducts Sales & Trading business by offering solutions to customers through providing market products, and engages in ALM* and investment businesses through balance sheet management.
In the Sales & Trading business, the Company offers a wide variety of financial market products and responds to the risk hedging and investment needs of a diverse customer base in Japan and overseas, including individuals, corporations, financial institutions, investors and others. It provides optimal solutions that are suited to the financial and investment strategies of each of its customers. The Company offers these services by drawing on its in–depth understanding of customers' needs, detailed analyses and forecasts of financial market trends as well as expertise such as sophisticated knowledge and experience in various financial products.
The ALM/Investment business is comprised of the ALM business and Investment business. In the ALM business, the Company manages interest rate risks arising from Mizuho's funding activities as well as from assets and liabilities such as lending to and deposits from its customers. Meanwhile, in the Investment business, it works to generate a high and stable level of profits by managing its portfolios based on early warning control to quickly detect changes in the markets and portfolio diversification taking into account the market environment and forecast.
- *Asset liability management (ALM): Comprehensive management of assets and liabilities
- Sales & Trading Business Operating Framework
Key Aspects of the Company
Conditions in the External Environment
- Higher volatility in each market due to uncertainty about the future outlook, declining risk appetite of market participants and increasing geopolitical risks
- Growing needs among customers for risk hedges and asset management
- Responding to the needs of investors such as hedge funds, overseas asset management companies, etc.
- Enhancement of portfolio management
- Sophisticated financial product capabilities based on collaboration among banking, trust banking and securities functions
- Sales & Trading business framework that provides customized solutions for a wide variety of customer needs by segment and individual company
- Portfolio management framework that optimizes asset allocation and adjusts risks by portfolio diversification depending on market environment
Interim Results for Fiscal 2016
Achieve the aims of Mizuho's market business model through emphasis on the "customer first" principle
The basic strategy of the Company, as stated in its new medium–term business plan, is to achieve Mizuho's market business model by offering products and solutions that meet the needs of each customer segment and individual company through the "customer first" approach. During the period under review, the Company continued to steadily implement this strategy.
In its Sales & Trading business, it focused on offering products and solutions that were carefully tailored to customer needs. These included providing assistance to customers experiencing difficulty in asset management because of the negative interest rate policy and those wishing to conduct cross border transactions. In addition, through the realignment of the derivative business in Europe, it upgraded its infrastructure to strengthen its future business operations.
In the ALM/Investment business, the environment for asset management has been challenging due to low interest rates, but the Company generated a high level of profits during this period through early warning control and portfolio diversification.
Moreover, MHFG issued its first TLAC bonds (bonds with total–loss absorbing capabilities), enabling it to respond to evolving regulations and to raise non–yen funds smoothly.
- Net Business Profit for Fiscal 2018 (Plan)
- *Before head office expense deduction
- Breakdown of Gross Profit (Interim Fiscal 2016)
- Sales & Trading Related Income*
- *Global Markets Company managerial basis
Dual Operation Centers Framework (Tokyo and Osaka) Go Live in Preparation for unforeseen Disasters
To enhance business continuity of market–related operations in case a major natural or other types of disaster strikes the Greater Tokyo Region, the Company has upgraded the Osaka backup site, which were used only in times of emergency to enable tandem market operations at all times both in Tokyo and Osaka.
Moreover, we will be able to play our key role in the society, providing essential banking services and infrastructure even in times of emergencies, as we can always conduct cash settlement and other operations in these two locations. This substantially strengthens our systems to provide necessary customer services without interruption or delay.