Nordea to boost Citi’s Nordic sub-custody services

By Megha Bhattacharya

Nordea announced that it has finalised an agreement with Citi, thus recommending its existing clients to appoint Citi as their new sub-custody services provider in the Nordic region. The development comes after Nordea’s decision of exiting the Nordic sub-custody business market.

“Citi is pleased to enter into this strategic referral arrangement with Nordea, a move that affirms our commitment to grow and invest in our sub custody network,” said Okan Pekin, Global Head of Securities Services at Citi. “Citi is committed to delivering local expertise to our global clients and also continues to be the partner of choice for many firms seeking access to different markets.”

According to Citi, clients that migrate will be able to leverage its European Single Legal Vehicle (SLV) platform through Citibank Europe Plc, Dublin Head Office. This platform offers clients direct access to all major European markets, including the TARGET2-Securities (“T2S”) markets, via one single access point.

Citi Direct Custody and Clearing provides clearing and settlement services for trading and investing activities of broker dealers as well as offering local market sub-custody services to banks and global custodians in around 60 markets around the world.

“The arrangement with Citi supports our strategic objective with increased Nordic focus. Our clients that transition to Citi can be confident that their short and long term needs are catered for in the best possible way,” said Martin Persson, Head of Large Corporates & Institutions at Nordea.

Matthew Bax, Global Head of Direct Custody and Clearing at Citi added, “We anticipate that many of Nordea’s clients are existing Citi clients in other parts of the world. Citi is well placed to not only meet their needs, but help standardize their businesses across different geographies.”

Recently, FinecoBank announced that it has added a suite of funds from Nordea Asset Management. The development will provide Fineco’s customer in the UK will now have access to Nordea’s investment expertise. Investors can access a number of strategies run by Nordea’s renowned Multi Assets Team, which is headed up by Asbjørn Trolle Hansen.