6.1.6.2.4.2. Open Market Trading Desk
While the FOMC sets the target rate for its open market operations, its policy is implemented at the Federal Reserve Bank of New York by the Open Market Trading Desk.
The Open Market Trading Desk conducts open market operations by buying and selling Treasury securities with selected primary dealers. Primary dealers are very large brokerage firms and investment banks that have won an exclusive right to trade directly with the Federal Reserve on the secondary market. To receive this right, primary dealers obligate themselves to participate in auctions for the issuance of new Treasury securities and