Danske Markets will act as stockbrokers in New York, and the new unit is expected to start operating in the second half of 2010 when a number of practicalities are in place.
Natural extension
The New York unit will advise investors in North America and trade in Nordic securities. Steen Blaafalk, Head of Danske Markets, sees the new unit as a natural extension of Danske Markets’ activities with clients in the Nordic region, the UK and other parts of Europe.
“The opening in New York bridges one of the gaps in our strategy of being a leading Nordic market operator,” says Steen Blaafalk. “Currently, Danske Markets distributes shares in the Nordic countries and out of London, but we need to get a stronger foothold in the US market. The current setup only allows us to distribute shares indirectly. We are fairly competitive within bonds, but we are not physically close to our clients because we operate out of Copenhagen. To be truly competitive, we have to have a physical presence in the market.”
Stronger focus
Henrik Voetmann Mikkelsen, Global Head of Equities at Danske Markets, considers the establishment in New York a significant step towards stronger focus on Nordic shares in North America.
“Most of the large Nordic companies have American investors among their shareholders,” Henrik Voetmann Mikkelsen comments. “Just look at Danske Bank, for example. Ten per cent of the Bank’s shares are held by American investors.”
Henrik Mikkelsen adds that globalisation will speed up this trend.
“That makes it essential that Danske Markets has a presence in the US market,” Mikkelsen says. “We will get much easier access to the large number of professional American investors who have an eye for Nordic shares.”