Primary Dealers in Government Securities: Policy Issues and Selected Countries Experience

March 1, 2003

Preview Citation

Format: Chicago

George Iden, and Marco Arnone. Primary Dealers in Government Securities: Policy Issues and Selected Countries Experience, (USA: International Monetary Fund, 2003) accessed October 15, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

In many countries, authorities have designated a group of financial firms as the principal intermediaries in the government securities market-referred to as "primary dealers" or a "primary dealer system." This paper discusses policy issues related to the establishment of a primary dealer system for countries that may be considering taking this step. In this regard, a key issue is whether a primary dealer system fits into the overall strategy for financial market development in the country. Under a primary dealer system, the debt manager and the group of primary dealers pursue a common strategy in support of the effective functioning and development of primary and secondary markets for government securities. This paper presents results of a survey of country practices conducted in early 2001. Among the countries surveyed, there was broad agreement among authorities that a primary dealer system is to be highly recommended.

Subject: Asset and liability management, Central banks, Financial institutions, Financial markets, Government securities, Liquidity, Open market operations, Securities, Securities markets

Keywords: Australia and New Zealand, Dealer, Dealer status, Dealer system, Dealers activity, Global, Government securities, Issuer policy, Liquidity, Market, Market liquidity, Market structure, Market-making responsibility, Open market operations, PD market participant, Price discovery, Primary dealers, Public debt management, Secondary market, Securities, Securities markets, Securities transaction, WP

Publication Details

Pages:

65
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2003/045
Stock No:

WPIEA0452003
ISBN:

9781451846492
ISSN:

1018-5941

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