Dealers are people or firms who buy and sell securities for their own account, whether through a broker or otherwise. They act as a principal in trading for their own account, as opposed to a broker who acts as an agent who executes orders on behalf of its clients. They are composed mostly of large banks engaging in money dealing activities—engaging as a counterparty in repo markets. They are important figures in the market. They also help create liquidity in the markets and boost long-term growth.


Repo Market

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Jeff Snider

Dealers often will "window dress" their books at quarter-end or month-end to appease regulators. Doing this often withdraws liquidity from the markets and takes away liquidity from less risky activities.