Why has the New York Fed adopted a revised policy for the administration of relationships with primary dealers?
The revised policy takes into consideration the evolution of the marketplace and of open market operations over the past decade, as well as recent changes in the role of primary dealers. The intent of the policy is to be more transparent about the significant business standards expected of primary dealers, and to provide clearer guidance regarding the process of becoming a primary dealer. The business standards in the revised policy represent a formalization of existing practice that has accumulated over time and do not represent new standards expected of primary dealers.
