New primary dealer model continues in 2018

Authors Bang-Andersen, Jens
Subject Government Debt; Issuance; Government security; Government bond; Market making
Type Government Debt
Year 2017
Published 14 December 2017
The central government's primary dealer model with enhanced requirements and payments has strengthened the market for Danish government securities. That is the background for maintaining the model with payments in 2018. The model has contributed to a more liquid market for government securities and hence to lower financing costs for the central government. Liquidity has been increased through narrower bid-ask spreads and a higher number of banks actively trading Danish government securities.