Kosei Securities

Basic Information

Stock Code: 8617
Industry: Securities and Commodity Futures Trading
Category Detail: Securities
Prefecture: Osaka Prefecture
Establishment Year: April 1961
Listing Year: May 1988
Official Website: https://www.kosei.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Gendai, Ajuban, Imamura Securities, Daiwa Securities Group, Nomura Holdings, Okasan Securities Group, Marusan Securities, Toyo Securities, Tokai Tokyo Financial Holdings, Mito Securities, Kyokuto Securities, Iwai Cosmo Holdings, Aizawa Securities Group

Overview

Kosei Securities is an independent securities firm founded in 1961, specializing in proprietary trading with a solid financial foundation, providing financial services in Osaka and Tokyo.

Current Situation

Kosei Securities recorded sales of approximately 1.2 billion yen in fiscal 2023, with a revenue structure centered on proprietary trading. Since its founding, it has been deeply involved in the establishment of the Nasdaq market at the Osaka Securities Exchange and targets conservative affluent clients. Operating from two bases in Tokyo and Osaka, it efficiently conducts sales, handling a wide range of derivative products such as gold futures and options to enhance expertise. In recent years, it has focused on strengthening services for individual investors through the expansion of online trading. Its financial position is robust, with a high equity ratio and stable management. Moving forward, it plans to strategically expand handling of hedge funds and alternative investments, while strengthening risk management systems to adapt to changing market environments. While specific sustainability initiatives are limited, it strives to enhance investor protection and governance. Future growth hinges on IT system enhancements and acquiring new customer segments, maintaining regionally rooted securities services while pursuing flexible business development.

Trivia

Interesting Facts

Founder contributed to the establishment of the Nasdaq market at the Osaka Securities Exchange
Company name derives from the Bible's 'salt of the earth, light of the world'
Small firm with about 44 employees but long history as a securities company
Veteran holder of Japan's first Type 1 Financial Instruments Business registration
Unique market strategy specialized in proprietary trading operations
Representative is Daisuke Tatsumi, with deep ties to the Tatsumi family
Two bases in Tokyo and Osaka for regionally rooted services
Introduced cloud-based core systems in 2014
Conducts options trading education for individual investors
Integrated Nagoya branch in the 1990s to form current structure
Early acquisition of Type 1 registration under Financial Instruments and Exchange Act
Registered for exchange FX trading as Type 2 Financial Instruments Business
Provides wide range of derivative products via online trading
Company name recognized as expressing corporate mission
Small scale but holds strong influence in financial markets

Hidden Connections

Founder Gorō Tatsumi was a key figure in Osaka Securities Market development with strong local financial ties
Company name origin based on Christian teachings, reflecting unique corporate ethics
Many Tatsumi family-related companies as major shareholders, contributing to management stability
Leverages collaborations with hedge fund-related firms to excel in alternative investments
Handles all derivative products at financial instruments exchanges, contributing to market formation
Part of online securities business partnered with other securities firms to complement customer base
Early approval for investment trust payment agency business to build trust
Pioneering industry support for options trading education for individual investors

Future Outlook

Growth Drivers

Digitalization of financial markets and increase in online trading customers
Expansion of alternative markets such as hedge funds
Growing demand for diversified financial products
Strengthened utilization of regionally rooted customer base
Improved responsiveness to financial regulatory reforms
Enhanced investment education for younger generations
Advanced risk management through AI utilization
Increasing interest in environment- and society-focused investments
Stable management leveraging financial soundness
Expansion of global investment product handling
Increased trading opportunities utilizing market volatility
Continuous updates to IT infrastructure

Strategic Goals

Double the number of online trading customers
Increase hedge fund-related trading volume by 50%
Maintain equity ratio above 20%
Develop and expand sustainability-related financial products
Further strengthen internal controls and compliance systems
Improve trading efficiency and reduce costs through new technology introduction
Enhance financial education programs for diverse customer segments
Improve brand through strengthened community collaborations
Advance digital platforms and ensure security
Diversify revenue base by 2030 to establish stable growth

Business Segments

Proprietary Trading Support for Financial Institutions

Overview

Provides trading support and risk management services for financial institutions in proprietary trading.

Competitiveness

Stability from high-precision market analysis and trading execution capabilities

Customers

Domestic financial institutions
Hedge funds
Asset management companies

Products

Futures trading intermediation
Derivative risk management
Market analysis tool provision

Alternative Investment Intermediation

Overview

Facilitates and advises on hedge funds and alternative investment products.

Competitiveness

Highly specialized investment advice and team with extensive market experience

Customers

Hedge funds
High-net-worth individuals
Institutional investors

Products

Hedge fund investment products
Alternative asset investment advice

Market Infrastructure Services

Overview

Contributes to securities market infrastructure development and financial information provision.

Competitiveness

Technical support system well-versed in market operations

Customers

Securities exchanges
Financial information service companies

Products

Trading system development collaboration
Financial information data provision

Competitive Advantage

Strengths

Expertise specialized in proprietary trading
Solid financial position
Major bases in Osaka and Tokyo
Handling of diverse derivatives
Experienced specialist personnel

Competitive Advantages

Flexible and swift decision-making as an independent firm
Track record in trading various derivative products
Advanced risk management system
Stable orders from close customer relationships
Capabilities in both online and face-to-face services

Threats

Market share competition from major securities firms
Risk of sudden market volatility fluctuations
Potential business restrictions from strengthened financial regulations
Aging of customer base
Rapid changes in digital technology

Innovations

2023: Renewal of online derivatives trading platform

Overview: Launched a faster and more secure trading environment using the latest IT technology.
Impact: Improved customer convenience and increased trading volume

2022: Advanced derivative risk management system

Overview: Developed and began operating an AI-introduced risk management tool.
Impact: Enabled rapid detection and response to market fluctuation risks

2021: Expansion of gold futures trading services

Overview: Began handling gold futures on the Osaka Exchange, strengthening the product lineup.
Impact: Contributed to acquiring new customers and expanding revenue

2024: Digitalization of customer education services

Overview: Expanded online seminars and e-learning to support improvement of customers' financial knowledge.
Impact: Achieved higher customer satisfaction and strengthened customer base

Sustainability

Focus on enhancing transparency in financial transactions
Strengthening customer asset protection
Renovation to energy-efficient offices
Thorough internal compliance training
Promotion of diversity