By Stefania Spezzati LONDON (Reuters) - UK regulators eased capital demands on Nomura Holdings Inc. that had been place after it lost $2.9 billion on fund Archegos, according to two people with knowledge of the matter, freeing up the firm from a punitive measure that curbed risk-taking. The Prudential Regulation Authority (PRA), the Bank of England's supervisory arm, at the end of 2023 told Japan's largest brokerage firm it no longer had to set aside extra capital in its European unit, the sources said, requesting anonymity because the matter is private. The PRA's decision comes after the Tokyo-based firm made progress on a remediation plan that required Nomura to improve its risk monitoring and control systems, one of the sources added. The additional capital that Nomura now has available will be invested in its wholesale business in Europe, the same person said, without elaborating further. The curb's removal and its existence hasn't been previously reported.