Nordea Culls Securities From Market Unit Amid Negative Rates

As long-term negative interest rates reshape life in the Nordic region, its biggest bank is trying to reinvent one of its most important business areas.

Nordea Bank Abp says it’s rethinking how it does market making -- a service that helps investors carry out securities trades and ensures liquidity -- in an effort to adapt to long-term negative rates. The decision, which is also a reaction to bigger capital requirements, means Nordea will cull its inventory of securities needed to execute trades. Keeping those products on its shelf has simply become too costly.