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