primary dealer


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Primary dealer

Usually refers to the select list of securities firms that are authorized to deal in new issues of government bonds.

Primary Dealer

A firm to and from which the New York Federal Reserve directly sells and buys Treasury securities. That is, primary dealers help the Federal Reserve control the money supply by underwriting Treasury securities and placing them with investors. Primary dealers tend to be well-respected and well-known financial institutions. Merrill Lynch and Citigroup are examples of primary dealers.

primary dealer

A government securities firm to which the New York Federal Reserve Bank sells directly and from which it buys directly in an attempt to control the money supply. Compare reporting dealers. See also open-market operations.
References in periodicals archive ?
After an applicant is found fit by the State Bank of Pakistan, a letter would be issued for its appointment as Primary Dealer for a period of one year.
Fourth, for obvious reasons, it was necessary to clarify the reasons and the conditions under which the Federal Reserve Bank of New York would alter its relationship with a primary dealer firm.
As noted above, among the private participants in the market are the so-called primary dealers in U.S.
PRIMARY DEALERS AND THEIR ASSOCIATION WITH THE FEDERAL RESERVE BANK OF NEW YORK
If the finance ministry disqualifies Samsung, which has been designated a primary dealer since 1999 when the system was introduced, it would be degraded to a preliminary primary dealer.
Al-Roshoud, explained that KFH has a long track-record of participating in IILM's issuances since its inception where KFH was the first bank in Kuwait nominated as a primary dealer. He reiterated that IILM's Sukuk lured Islamic and conventional banks to take part in the trading which is in line with KFH's endeavors to improve Islamic finance industry at the global level.
Treasury transaction reports to determine if the primary dealer had Troubled Asset Relief Program (TARP) funds outstanding by the loan date.
Proprietary Trading of Government Securities on the stock exchanges provided such trading is carried out by the Primary Dealers (PDs) directly on the workstation given by the exchange for this purpose.
Both permanent and temporary open market operations have traditionally been conducted with a limited number of counterparties known as primary dealers. Although the roots of this primary dealer system trace to 1935, when the Fed was first prevented from buying bonds directly from the U.S.
The Indonesian finance ministry has appointed PT Bank HSBC Indonesia as a primary dealer of government bonds, according to Reuters.
The State Bank of Pakistan recently, 2nd year in a row has declared JS Bank as the Number 1 Primary Dealer of Government Securities for the year 2011-12.
Global Banking News-April 18, 2011--Goldman Sachs India to launch primary dealer operations(C)2011 ENPublishing - http://www.enpublishing.co.uk

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