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In Denmark there are three netting systems whereby net amounts are settled via banks' accounts with Danmarks Nationalbank. Net amounts cannot be settled unless there are sufficient funds on the banks' accounts with Danmarks Nationalbank.
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Netting systems
The three netting systems which are settled via Danmarks Nationalbank handle three different types of payments. The three systems are:
- Sumclearing, which handles payments involving e.g. Dankort (debit card), cheques and BetalingsService (direct debit).
- The VP system, which handles payments related to securities trades, typically shares and bonds.
- FUTOP, which handles payments related to trading in futures and options.
Finally, the international settlement system for currency trades, CLS, also settles amounts in Danish kroner via Danmarks Nationalbank.
Only settlement if the funds are available
In all three systems, settlement can only take place if there are sufficient funds on the banks' accounts with Danmarks Nationalbank.
Banks can ensure that the funds are present in several ways. They can either make sure that they have sufficient funds in their accounts, or they can provide collateral in the form of securities.
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