Primary dealer
BankingDefinition
Bank approved by the New York Fed to trade directly with the central bank, participate in Treasury auctions, and provide market-making in Treasuries. As of 2024: 24 primary dealers (Goldman, JPM, Morgan Stanley, BofA, etc.).
Status grants enormous information advantage and trading flow. The list contracts in crises (Lehman, Bear Stearns) and expands gradually thereafter.
Status grants enormous information advantage and trading flow. The list contracts in crises (Lehman, Bear Stearns) and expands gradually thereafter.