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, primary dealers are one party to the transaction.
To support the primary and secondary markets, the central government has entered into primary dealer contracts with a number of regional and international banks. Moreover, the central government has a price-quoting system on Nasdaq OMX under which four Danish banks have committed to quote current bid-ask prices. In addition to the price-quoting systems, various other initiatives have been taken to support trading and liquidity in the Danish market for government securities, for instance the securities lending facilities for primary dealers and buy-backs.
Liquidity in Danish government securities is generally high across maturity segments particularly in bonds with short remaining maturity, a large outstanding volume and benchmark status (Danish Government Borrowing and Debt 2013, Chapter 8: Liquidity in Danish Government Securities).
On 6 October 2014, the market standard for the number of settlement days on trades in the secondary market for government bonds changed from three to two.