Daiwa Securities Group Inc. has migrated its London trading operations to Frankfurt-based unit Daiwa Capital Markets Deutschland as part of its Brexit contingency plans, the Financial Times reported.

The Japanese group's new Frankfurt subsidiary was granted a securities trading license in September and serves as the lender's primary EU hub. It has its own pool of capital and employs 25 relocated or locally hired staff. Daiwa still employs roughly 450 staff in its London securities business, the FT said.

The move follows that of Japanese peer Nomura Holdings Inc., which established a licensed trading hub in the German financial capital and is reportedly in advanced talks with French regulators about using Paris as an alternative banking hub for clients who want to borrow from an EU counterparty instead of its existing hub in London.