Securities lending facility


The central government's lending facility applies to all government securities. Securities lending takes place against collateral in other Danish government securities.

Primary dealers in government bonds can borrow bonds for a period of up to 5 trading days. Similarly, primary dealers in T-bills can borrow T-bills for a period of up to 5 trading days. The fee is 0.2 per cent per year for both government bonds and T-bills with settlement the following day. In case of same day settlement, the fee is 0.3 per cent per year. The lending facility is available as buy-/sell-back transactions. Participants borrow in one buy-/sell-back transaction and lend (provide collateral) in another buy-/sell-back transaction. A haircut of 2.5 per cent is applied to each buy-/sell-back transaction.​