Nordea, Stockholm, hired Bank of New York as global subcustodian for €240 billion ($295.2 billion) in assets for Nordea's Nordic and Baltic clients, confirmed Atte Palomaki, Nordea's chief communications officer. Under the five-year agreement, Bank of New York will also provide services including performance measurement.
"Before this, we were managing them through a network of subcustodians," Mr. Palomaki said.
"We had three options - either team up with someone, invest heavily ourselves, or just give up the business, and we saw this as a very good way to be a strong player," he said, adding that the search for a custodian took about two years. "We naturally took a close look the most important players in the field."