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 ?
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.
Over this period, the average CDS buyer had to pay 120 basis points to insure the senior unsecured bonds of a primary dealer.
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.
Further consideration suggests, however, that the apparent need for direct lending during crises stems, not from the inadequacy of open market operations as such, but from the inadequacy of the Fed's particular rules and procedures for conducting such operations, including its reliance upon the primary dealer system.
In a statement released recently, cabinet said it had instructed the finance ministry to issue bonds worth N$250 million to the central bank for the establishment of a portfolio that the bank will use to finance settlement by the primary dealers system.
In addition to being designated as a Primary Dealer by the Federal Reserve Bank of New York, Jefferies has been appointed an official member of the Federal Republic of Germany's bidding group, a Gilt-edged Market Maker (GEMM) jointly by the UK Debt Management Office and London Stock Exchange, a Dutch Primary Dealer by the Dutch State Treasury, an OEVT (Operadores Especializados em Valores do Tesouro) by IGCP in Portugal, and as a member of the Auction Panel for Republic of Austria Government Bonds.
Osman Morad, Managing Director & CEO, Standard Chartered Bank Malaysia said "We are proud to be the only global bank to be appointed a Primary Dealer for the programme.
This refers to the rules governing primary dealer system issued vide DMMD circular no.
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.
Meanwhile, the Ministry of Strategy and Finance also announced a plan to reform the primary dealer policy, aiming to promote competition among primary dealers and to establish a system that corresponds with those of developed treasury markets.
BANKING AND CREDIT NEWS-6 August 2010-Ukraine grants primary dealer status to 3 banks(C)1994-2010 M2 COMMUNICATIONS http://www.

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