Primary Dealer Sample Clauses
The 'Primary Dealer' clause defines the status and obligations of a financial institution that is officially recognized to trade government securities directly with a central bank or government debt office. In practice, this clause outlines the criteria an institution must meet to be designated as a primary dealer, such as maintaining certain capital levels, participating in auctions, and providing market liquidity. Its core function is to ensure a reliable and efficient market for government securities by establishing a network of qualified dealers responsible for supporting issuance and secondary market activity.
Primary Dealer. The bank that has signed this agreement and has rights and obligations in primary and secondary market.
Primary Dealer. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S. Government securities market. PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.” REALIZED YIELD. The change in value of the portfolio due to interest received and interest earned and realized gains and losses. It does not give effect to changes in market value on securities, which have not been sold from the portfolio. REGIONAL DEALER. A financial intermediary that buys and sells securities for the benefit of its customers without maintaining substantial inventories of securities and that is not a primary dealer.