–Retransmitting Story Published 17:34 ET Tuesday
By Sheila Mullan
NEW YORK (MNI) – The New York Federal Reserve Bank said it has
named the following primary dealers in U.S. government bonds: BMO
Capital Markets Corp. and also Bank of Nova Scotia/New York Agency.
The move raises the ranks of primary dealers to 22.
The last addition to the list occurred in February 2011, when MF
Global Inc. and SG Americas Securities got added to the dealer ranks.
Canadian banks had survived the 2008 financial crisis relatively
unscathed, as they did not have much exposure to U.S. subprime debt and
in the latest financial crisis, to the European peripheral debt, thus
had money for expansion, said traders. There are now three Canadian
primary dealers in the U.S. government bond primary dealer ranks.
Primary dealers serve as counterparties to the Federal Reserve Bank
of New York in open market operations, participate directly in Treasury
auctions and provide analysis and market intelligence to trading desks
at the New York Federal Reserve Bank of New York. BMO officials said is
the only Midwestern-U.S. based broker dealer to hold this designation.
“We are delighted to be a part of the group of dealers trading
directly with the Federal Reserve Bank of New York,” said Charlie
Piermarini, Executive Managing Director and Head of Debt Products, BMO
Capital Markets. “This designation is consistent with BMO Capital
Markets’ global development and expansion strategy and is a natural next
step as we continue to build our fixed income platform in both the U.S.
and internationally.”
BMO Capital Markets is a full-service North American financial
services provider, with 2,200 employees in 17 North American locations
and 29 worldwide. It is also a member of BMO Financial Group (NYSE, TSX:
BMO), one of the largest diversified financial services providers in
North America with US$499 billion total assets and more than 47,000
employees as at July 31, 2011.
The Bank of Nova Scotia (TSX: BNS) (NYSE: BNS) said its U.S. primary
dealership status follows its recent attainment of similarl status in
Germany, France and the United Kingdom.
“Primary dealer designation by the Federal Reserve Bank of New
York is consistent with Scotiabank’s history of operating a fixed income
franchise in Canada, and its expansion in the U.S. is a natural
extension of its core strength,” said Mike Durland, Group Head, Global
Capital Markets and Co-Chief Executive Officer of Scotia Capital, the
wholesale banking arm of Scotiabank.
“Becoming a Primary Dealer in the U.S. is a welcome next step as
Scotiabank continues to expand its Global Fixed Income platform,” said
Michael Zych, Managing Director and Head, Global Fixed Income, Scotia
Capital.
Scotiabank is one of North America’s major financial institutions
with more than 70,000 employees, Scotiabank Group and its affiliates
serve some 18.6 million customers in more than 50 countries around the
world. It offers a broad range of products and services
including personal, commercial, corporate and investment banking.
With assets above $567 billion (as at July 31, 2011), Scotiabank trades
on the Toronto (BNS) and New York Exchanges (BNS).
The U.S. government bond primary dealer ranks appear below
as follows:
Bank of Nova Scotia, New York Agency
BMO Capital Markets Corp.
BNP Paribas Securities Corp.
Barclays Capital Inc.
Cantor Fitzgerald & Co.
Citigroup Global Markets Inc.
Credit Suisse Securities (USA) LLC
Daiwa Capital Markets America Inc.
Deutsche Bank Securities Inc.
Goldman, Sachs & Co.
HSBC Securities (USA) Inc.
Jefferies & Company, Inc.
J.P. Morgan Securities LLC
MF Global Inc.
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Mizuho Securities USA Inc.
Morgan Stanley & Co. LLC
Nomura Securities International, Inc.
RBC Capital Markets, LLC
RBS Securities Inc.
SG Americas Securities, LLC
UBS Securities LLC.
–By Sheila Mullan, smullan@marketnews.com, 212-669-6432
** Market News International New York Newsroom: 212-669-6430 **
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