These primary dealers, which all bid for government contacts competitively, purchase the majority of Treasuries at auction and then redistribute them to their clients, creating the initial market in the process.
Some of the well-known primary dealers in the United States include Merrill Lynch, Citigroup, and Lehman Brothers.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Primary dealer — A primary dealer is a bank or securities broker dealer that may trade directly with the Federal Reserve System of the United States. [http://www.ny.frb.org/markets/primarydealers.html Federal Reserve Bank of New York:Primary Dealers] . Retrieved… … Wikipedia
primary dealer — A designation given by the Federal Reserve System to commercial banks or broker/dealers who meet specific criteria. Among the criteria are capital requirements and meaningful participation in the Treasury auctions. Chicago Board of Trade glossary … Financial and business terms
primary dealer — See Treasury securities primary dealer … Euroclear glossary
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Primary Dealer Credit Facility — On March 17, 2008, in response to the subprime mortgage crisis and the collapse of Bear Stearns, the Federal Reserve announced the creation of a new lending facility, the Primary Dealer Credit Facility (PDCF). Eligible borrowers include all… … Wikipedia
Primary Dealer Credit Facility - PDCF — An institution created by the Federal Reserve to provide overnight loans to primary dealers through their clearing banks in exchange for eligible collateral. The Primary Dealer Credit Facility (PDCF) provides loans that settle the same business… … Investment dictionary
Treasury securities primary dealer — Financial institution having obtained, by the State, a particular role relative to the issuance, the placement, and the secondary market of Treasury securities, and having on a permanent basis, the obligation to ensure the liquidity of the… … Financial and business terms
Treasury securities primary dealer — Financial institution having obtained, by the State, a particular role relative to the issuance, the placement, and the secondary market of Treasury securities, and having on a permanent basis, the obligation to ensure the liquidity of the… … Euroclear glossary
dealer — A firm or an individual who buys and sells for his own account. A dealer has ownership, even if only for an instant, between a purchase from one party and a sale to another party, and is thus compensated by the spread between the price paid and… … Financial and business terms
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