Danish government securities are traded on a number of electronic interdealer and dealer-to-customer trading platforms as well as over-the-counter. In most of these transactions, one of the parties will be a primary dealer.
To support primary and secondary markets, the central government has entered into primary dealer contracts with a number of regional and international banks. Moreover, various other initiatives have been taken to support trading and liquidity in the Danish market for government securities. For instance buybacks of government bonds and the establishment of a securities lending facility for primary dealers.
Liquidity in Danish government securities is generally high across maturity segments, particularly in bonds with a short remaining maturity, a large outstanding volume and benchmark status.