Denmark to trial primary dealer payments in effort to boost liquidity
Central bank says payments in exchange for tougher requirements should improve liquidity
Denmark is to trial annual payments to its primary dealers in exchange for tougher minimum requirements and a fresh dose of competition, which the National Bank of Denmark believes could boost liquidity.
From April 1, Denmark's 11 primary dealers will be offered a share of a Dkr25 million ($3.6 million) pot, paid out annually according to which banks offered the best bid/ask spreads and had the highest turnover during the preceding year.
The central bank, which manages Denmark's national debt
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