Who Are the Primary Dealers of the Federal Reserve?

In “How Money Is Created: Part 1” I mentioned the “Primary Dealers.” They are the only ones authorized to trade directly with the Federal Reserve System and they buy US Treasury Bills, Notes & Bonds and resell them. As of October 31, 2011 according to the Federal Reserve Bank of New York, the Primary Dealers are (I rearranged them by nation):

Canada

● Scotiabank Global Banking and Markets

● BMO Capital Markets Corp.

● RBC Capital Markets, LLC

France

● BNP Paribas Securities Corp.

● SG Americas Securities LLC.

Germany

● Deutsche Bank Securities Inc.

Great Britain

● Barclays Capital Inc.

● HSBC Securities (USA) Inc.

Japan

● Daiwa Capital Markets America Inc.

● Mizuho Securities USA Inc.

● Morgan Stanley & Co. Incorporated

● Nomura Securities International Inc.

Scotland

● RBS Securities Inc.

Switzerland

● Credit Suisse Securities (USA) LLC

● UBS Securities LLC.

United States

● Cantor Fitzgerald & Co.

● Citigroup Global Markets Inc.

● Goldman, Sachs & Co.

● Jefferies & Company Inc.

● J.P. Morgan Securities LLC

● Merrill Lynch, Pierce, Fenner & Smith Incorporated

Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passions, they cannot alter the state of facts and evidence. (John Adams)