Primary Dealers in Government Securities: Policy Issues and Selected Countries Experience
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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.
Series:
Working Paper No. 2003/045
Subject:
Asset and liability management Central banks Financial institutions Financial markets Government securities Liquidity Open market operations Securities Securities markets
English
Publication Date:
March 1, 2003
ISBN/ISSN:
9781451846492/1018-5941
Stock No:
WPIEA0452003
Pages:
65
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