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The Role Of The Primary Dealers In The Government Securities Market

Author

Listed:
  • Olesea SPEIAN

Abstract

Governments need money for good functioning. Following the COVID – 19 pandemic and the energy crisis, finding sources to cover the budget deficits has become a real challenge. One of the ways of accumulating funds is by issuing government securities through auctions. Thus, countries are continuously concerned about developing the domestic debt market to decrease the dependence on external creditors. The primary dealer system is the most widespread form of cooperation between the issuer and investors. The main goal of the research is to show the influence of the primary dealer system on the development of the government securities market. In order to meet the requirements of the debt manager’s office they have to fulfil certain obligations. Despite the quantitative obligations of the primary dealers, the analysis focuses also on their qualitative aspects. Also, the paper presents a practical experience for selected countries regarding the evaluation of the activity of the primary dealers. The results of this research show a dependence between the development of the domestic government securities market and the methodology for evaluating the activity of the primary dealers.

Suggested Citation

  • Olesea SPEIAN, 2022. "The Role Of The Primary Dealers In The Government Securities Market," Eastern European Journal for Regional Studies (EEJRS), Center for Studies in European Integration (CSEI), Academy of Economic Studies of Moldova (ASEM), vol. 8(2), pages 68-81, December.
    • Handle: RePEc:aem:journl:v:8:y:2022:i:2:p:68-81
    DOI: https://doi.org/10.53486/2537-6179.8-2.05
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    References listed on IDEAS

    as
    1. Mr. George Iden & Mr. Marco Arnone, 2003. "Primary Dealers in Government Securities: Policy Issues and Selected Countries Experience," IMF Working Papers 2003/045, International Monetary Fund.
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    More about this item

    Keywords

    government securities; primary dealers; obligations; evaluation; auction.;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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