Primary dealer
A primary dealer is a bank or -dealer authorized to trade government securities directly with the and required to participate in . There are only a couple dozen of these firms at any given time, and the designation comes with both privileges and obligations.
When conducts , buying or selling Treasury securities to implement monetary policy, it does so through primary dealers rather than the open market generally. In exchange for this direct access, primary dealers are obligated to bid meaningfully in every and to provide with market information that helps it understand conditions in the market.
Primary dealers matter to investors well beyond the market, because they are deeply involved in the plumbing that keeps short-term funding markets running smoothly, and stress in that plumbing can spill into and credit markets. Firms including the largest US and global banks hold primary dealer status, and publishes the full list, which shifts occasionally as firms are added or exit the role.