NY Fed Increases Primary Dealer Standards

Law360, New York (January 11, 2010, 7:17 PM EST) -- Financial institutions seeking a primary dealer designation from the Federal Reserve will have to comply with higher capital requirements and prove that they've been in similar markets for at least one year, under guidelines published by the central bank's New York branch Monday.

Banks or securities trading firms that don't meet the raised standards will not be accepted as primary dealers, and existing primary dealers can lose the designation if they fall behind on their requirements, the New York Fed said.

Primary dealers deal directly with...
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