It’s in Iceland where hake swim round the lake (5)

I believe the answer is:

hekla

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'it's in iceland' is the definition.
I know nothing about this answer so I can't tell whether it can be defined by this definition.

'hake swim round the lake' is the wordplay.
'swim' indicates an anagram.
'round' is an insertion indicator.
'the lake' becomes 'l'.
'hake' anagrammed gives 'heka'.
'heka' going around 'l' is 'HEKLA'.

'where' is the link.

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I've seen this clue in the Evening Standard.

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