New Model has improved Liquidity in the Danish Government Securities Market

Analysis - May 2017 - No. 8

Authors Danmarks Nationalbank
Subject Government debt management; Government bonds; Market making
Type Analysis
Year 2017
Published 22 May 2017
New primary dealer model is off to a good start with an improvement in liquidity. Price transparency has improved with narrower bid-ask spreads and increasing turnover in the interdealer market. All 11 primary dealers in Danish government bonds have quoted substantially tighter prices and the turnover is to a lesser degree than before concentrated on a few banks.