Arnone, Marco, and George Iden, 2002, “Establishing a System of Primary Dealers in Government Securities,” IMF/Monetary and Exchange Affairs Department Operational Paper No. 02/02 (Washington: International Monetary Fund).
Dattels, Peter, 1997, “Microstructure of Government Securities Market,” in Coordinating Public Debt and Monetary Management, edited by V. Sundararajan, Peter Dattels, and H. J. Blommestein (Washington: International Monetary Fund).
European Union, 2000, “Progress Report on Primary Dealership in EU Public Debt Management” (unpublished; Brussels: Economic and Financial Committee).
Gray, Simon, 1997, “Government Securities: Primary Issuance,” in Handbooks in Central Banking No. 11 (London: Center for Central Banking Studies, Bank of England). Also available on the web at http://www.bankofengland.co.uk.
Inoue, Hirotaka, 1999, “The Structure of Government Securities Markets in G10 Countries: Summary of Questionnaire Results” (unpublished; Basel: Bank for International Settlements). Also available on the web at http://www.bis.org.
International Monetary Fund, and World Bank, 2001, Guidelines for Public Debt Management (Washington), http://www.imf.org/external/np/mae/pdebt/2000/eng/, http://www.worldbank.org/fps/guidelines/
International Organization of Securities Commissions, 1998, Objectives and Principles of Securities Regulation (Madrid). Also available on the web at http://www.iosco.org/docs-public/1998-objectives.html.
McConnachie, Robin, 1996, “Primary Dealers in Government Securities Markets,” in Handbooks on Central Banking (London: Center for Central Banking Studies, Bank of England). Also available on the web at http://www.bankofengland.co.uk.
The authors would like to thank Peter Dattels, Jennifer Elliott, Mats Filipsson, Robert Price, Christine Sampic, Andrea Schaechter, Mark Stone, V. Sundararajan, Mark Swinburne, Piero Ugolini, and Mark Zelmer for their helpful comments, and Sandra Marcelino for her excellent research assistance. We would also like to express our gratitude to the national authorities that participated in our survey.
The operational and technical issues related to the establishment of a primary dealer system are developed in Arnone and Iden (2002).
See Guidelines of Public Debt Management, International Monetary Fund and World Bank, 2001; also found on http://www.imf.org/external/np/mae/pbebt/2000/eng/indes.htm
See International Monetary Fund and World Bank, 2001b, Developing Government Bond Markets—A Handbook (Washington), Chapters 5 and 7.
For a more detailed discussion of the choice of market structure and the role of primary dealers, see Peter Dattels, 1997, “Microstructure of Government Securities Markets,” in Coordinating Public Debt and Monetary Management, edited by V. Sundararajan and others (Washington: International Monetary Fund), pp. 209–82.
Among the countries with primary dealer systems, the average number of primary dealers was 14.5, and the median number was 13. Countries in the lowest quartile (in terms of number of primary dealers) had 8 primary dealers. Austria, the Czech Republic, Ghana, and Korea had the largest number of primary dealers—each with 26, and the United States was next with 25.
Informal primary dealerships might have been in place for some countries before formalizing the arrangement. Years of establishment of a primary dealer system, indicated in Figure 1 as reported in the survey of national authorities, might therefore differ depending on whether a formal, as opposed to factual, interpretation is adopted, and country-specific factors.