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Collateral makes it easier for participants
To facilitate the operation of the settlement systems, participants can obtain credit by pledging securities to Danmarks Nationalbank. In that way participants do not have to wait until there are sufficient funds on their accounts before they can effect payment.
In addition to ordinary collateral, Danmarks Nationalbank may also grant access to a particularly flexible form of collateral, the automatic collateralization agreement, in connection with securities trading, settlement of positions in the Sumclearing system as well as pay-in’s to CLS. Furthermore the participants can use Scandinavian Cash Pool, SCP for cross boarder pledging of collateral for intra day credit between Denmark, Norway and Sweden.
Collateral for payments in euro
EU central banks make credits in euro available for payment systems via participants in TARGET2. Credit is granted against collateral in domestic securities and in securities issued in other EU member states.
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