Iwai Cosmo Holdings

Basic Information

Stock Code
8707
Industry
Securities and Commodity Futures Trading
Category Detail
Securities
Prefecture
Osaka Prefecture
Establishment Year
July 1944
Listing Year
February 2006
Official Website
http://www.iwaicosmo-hd.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Daiwa Securities Group Inc., Nomura Holdings, Okasan Securities Group, Marusan Securities, Toyo Securities, Tokai Tokyo Financial Holdings, Mito Securities, Traders Holdings, Kyokuto Securities, Aizawa Securities Group

Overview

Iwai Cosmo Holdings is a financial holding company established in 1944 and based in Osaka Prefecture. As the largest securities group in the Kansai region, it combines the strengths of face-to-face and online trading.

Current Situation

Iwai Cosmo Holdings recorded consolidated revenue of approximately ¥18.9 billion and net profit of approximately ¥2.7 billion for the fiscal year ended March 2020, maintaining steady management. Headquartered in Osaka, its main businesses are securities and commodity futures trading. In 2010, it acquired Cosmo Securities and pursued synergies through business integration. Through the merged Iwai Cosmo Securities from Iwai Securities and Cosmo Securities, it has expanded its customer base. The company focuses on advancing financial technology and strengthening online trading, while also handling asset management and investment trusts. It leverages regionally rooted services and professional face-to-face sales as strengths. It considers sustainability, emphasizing healthy market expansion and safe management of customer assets. From 2025 onward, it aims for long-term growth by expanding U.S. stock trading and improving efficiency through digital transformation.

Trivia

Interesting Facts

  • Leapfrogged to Kansai's largest through Cosmo Securities acquisition
  • Combines strengths of online and traditional securities
  • Roots in an established securities firm founded in 1944
  • Historical ties to the Yoshimoto Shinkigyo Group
  • Listed in 2006 as a relatively new financial holding company
  • Offers diverse financial products to a wide customer base
  • Deploys regionally rooted strategy in Osaka and Kansai
  • As of 2021, consolidated employees number approximately 825
  • Specialized team with extensive asset management expertise
  • Strengthened governance as a company with a board of auditors
  • Features multifaceted financial services including investment trusts and FX
  • Early entry into foreign exchange margin trading
  • Financial data evaluated as stable
  • Actively expanding online services
  • Distinctive service deployment as a mid-tier player in the securities industry

Hidden Connections

  • Has history as the lead shareholder of Yoshimoto Shinkigyo Group
  • Headquartered in Imabashi, Chuo-ku, Osaka, contributing to local economy
  • Gained market position through business integration of Cosmo and Iwai Securities
  • Audited by PwC Kyoto, ensuring high reliability
  • Major shareholders include financial institutions like Resona Bank
  • Deploys multifaceted securities operations as a financial holding company
  • High liquidity from listing on Tokyo Stock Exchange Prime Market
  • Related company: Iwai Cosmo Business Services

Future Outlook

Growth Drivers

  • Increasing customer demand for U.S. stock trading
  • Strengthening of trading platforms through digital technology
  • Differentiation effect of regionally rooted face-to-face sales
  • Flexible business responsiveness as a mid-tier securities firm
  • Expansion of investment needs emphasizing sustainability
  • Diversification of asset management products
  • Growth in foreign exchange trading services
  • Increasing demand for M&A and corporate finance
  • Penetration of financial education and investment awareness activities
  • Trust gained through improved regulatory compliance capabilities
  • Enhanced competitiveness via AI and analytics technology
  • Continuation of long-term asset-building boom

Strategic Goals

  • Complete overhaul of digital platforms
  • Aim to double assets under custody
  • Maintain top domestic share in U.S. stock trading
  • Expand financial products emphasizing ESG (Environment, Social, Governance)
  • Promote coexistence with local communities
  • Diversify revenue through new business areas
  • Expand financial education service infrastructure
  • Strengthen market competitiveness as a mid-tier securities firm
  • Enhance cybersecurity framework
  • Improve employee diversity and work-life balance

Business Segments

Securities Brokerage Operations

Overview
Provides securities trading execution and sales services to a diverse range of customers.
Competitiveness
Service expansion leveraging extensive trading expertise and networks
Customers
  • Retail investors
  • Institutional investors
  • Institutional investors
  • Fund managers
  • Pension fund operators
Products
  • Stock trading execution services
  • Bond trading services
  • Investment trust sales
  • Foreign currency-denominated products
  • Derivatives trading

Asset Management and Financial Advisory

Overview
Provides asset management planning and operational support for clients.
Competitiveness
Customized management by highly specialized staff
Customers
  • High-net-worth individuals
  • Corporate pension funds
  • Fund management companies
  • Financial institutions
  • Public institutions
Products
  • Portfolio construction advice
  • Investment product proposals
  • Risk management solutions
  • Pension asset management
  • Asset valuation and analysis services

Securities Systems and Operational Support

Overview
Supports IT system construction and operational efficiency for securities trading.
Competitiveness
Integration of industry-specific IT technology and financial knowledge
Customers
  • Securities firms
  • Financial institutions
  • Asset management companies
  • IT-related companies
  • Audit firms
Products
  • Trading system development
  • Risk assessment tool provision
  • Data management systems
  • Business process optimization services
  • Operational consulting

Corporate Finance

Overview
Supports overall financial strategies including corporate fundraising and M&A.
Competitiveness
Precise financial analysis based on market insight
Customers
  • Listed companies
  • Mid-sized companies
  • Startups
  • Financial institutions
  • Venture capital
Products
  • Stock issuance support
  • Fundraising plan development
  • Financial advisory
  • M&A support
  • Corporate valuation

Information Services and Market Analysis

Overview
Provides market trend and customer needs analysis services to support investment decisions.
Competitiveness
High-precision analysis capabilities based on extensive data and experience
Customers
  • Financial institutions
  • Investors
  • Corporate research departments
  • Research institutions
  • Media
Products
  • Market data distribution
  • Investment research reports
  • Customer trend analysis
  • Economic forecasting tools
  • Risk monitoring

Risk Management Support

Overview
Supports the development and response to customers' risk management systems.
Competitiveness
Comprehensive support by a team of certified professionals
Customers
  • Financial institutions
  • Insurance companies
  • Large corporations
  • Asset management companies
  • Audit firms
Products
  • Credit risk assessment
  • Market risk analysis
  • Compliance support
  • Internal audit services
  • Investment risk management

Foreign Exchange Product Trading

Overview
Provides a wide range of foreign exchange-related products and services.
Competitiveness
High-speed trading environment via dedicated platform
Customers
  • Retail investors
  • Corporations
  • Funds
  • Financial institutions
  • Importers and exporters
Products
  • Foreign Exchange Margin Trading (FX)
  • Foreign currency-denominated bonds
  • Currency options
  • Risk hedging products
  • Forex consulting

New Business and Investments

Overview
Promotes new businesses and investment strategies for future growth.
Competitiveness
Rapid decision-making responsive to market trends
Customers
  • Group companies
  • Startups
  • Venture capital
  • Research institutions
  • External investors
Products
  • New business development
  • Venture investments
  • Financial technology research
  • M&A investments
  • Overseas investments

Competitive Advantage

Strengths

  • Strong customer base centered in the Kansai region
  • Strengths in both face-to-face and online trading
  • Extensive securities trading expertise
  • Comprehensive asset management and investment trust services
  • Solid management foundation and financial position
  • Team of highly specialized advisors
  • Synergies from business integration
  • Stable scale of assets under custody
  • Diverse lineup of financial products
  • Active utilization of IT technology
  • Reliability based on long history
  • Governance system with board of auditors
  • Regionally rooted service deployment
  • High customer satisfaction ratings
  • Efficient management structure

Competitive Advantages

  • Broad customer touchpoints via online and face-to-face sales
  • Brand recognition as Kansai's largest securities firm
  • Market share expansion through Cosmo Securities acquisition
  • Ability to provide diverse financial products in one package
  • Flexible responsiveness as a regionally rooted mid-tier securities firm
  • High expertise in asset management advice
  • Robust online trading platform
  • Excellent risk management system
  • Cost reductions and efficiency from business integration
  • Speedy response to financial products and services
  • Extensive trading track record in the securities industry
  • Improved customer convenience through digitalization
  • Securing and developing professional talent
  • Flexible response to diverse customer needs
  • Trust gained through sound financial position

Threats

  • Intensifying market competition from major securities firms
  • Rise of new services like crowdfunding
  • Increased operational burden from stricter financial regulations
  • Risk of lagging in adapting to digital technology changes
  • Decline in face-to-face due to spread of online investment services
  • Revenue fluctuations from exchange rate volatility
  • Potential increase in customer asset outflow risks
  • Information leakage risks from cyber attacks
  • Revenue pressure from prolonged low interest rates
  • Reputation damage risk from regulatory non-compliance
  • Insufficient risk response during sudden market swings
  • Decline in investment appetite due to new economic crises

Innovations

2023: Enhancement of U.S. Stock Trading Services

Overview
Revamped trading system to improve convenience of online U.S. stock trading.
Impact
Increased customer usage and sales contribution

2022: Online Platform Integration

Overview
Unified multiple securities services to improve operability.
Impact
Improved customer satisfaction and procedural efficiency

2021: Introduction of AI-Powered Investment Analysis Tools

Overview
Deployed AI-based stock analysis and asset management advisory systems.
Impact
Advanced investment decision-making and enhanced customer support

2020: Cybersecurity Enhancement Project

Overview
Introduced the latest security technologies to protect customer assets.
Impact
Risk reduction and improved reliability

Sustainability

  • Promotion of environmentally friendly offices
  • Strengthened governance focused on customer asset protection
  • Building sustainable relationships with local communities
  • Promotion of financial education and investment awareness activities
  • Creating a comfortable workplace through diversity initiatives