Securities Lending Facility

Primary dealers in Danish government securities have the right to use the securities lending facilities of the central government and the Social Pension Fund (SPF) to which the participants are eligible.The purpose of the securities lending facilities is to supplement and strengthen market efficiency.

The central government's securities lending facility
The lending facility applies to on-the-run government securities and government securities with benchmark status.

Primary dealers in government bonds can borrow bonds for a period of up to 5 trading days. The fee is 0.2 per cent per year. Primary dealers in T-bills can borrow T-bills for a period of up to 5 trading days. The fee is 0.15 per cent per year. Collateral is required.

SPF's securities lending facility
The lending facility applies to all government bonds with more than 1 month remaining maturity of the type bullet loans in SPF's portfolio. The securities may be borrowed for a period of up to 5 trading days.
The fee is paid to SPF and is 0.2 per cent per year. Collateral is required.