UPDATE 1-Jefferies says to be U.S. primary dealer Thursday

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NEW YORK, June 17 (Reuters) - Jefferies & Co (JEF.N) said on Wednesday it will become a U.S. primary dealer effective Thursday, allowing it to do business directly with the Federal Reserve.

Including Jefferies, there will be 17 primary dealers, according to New York Federal Reserve's website.

Last year's financial crisis wiped out some of the biggest primary dealers -- Bear Stearns, Lehman Brothers, Countrywide and Merrill Lynch. It exacerbated the depletion that began with consolidation between commercial and investment banks.

Futures and options broker MF Global (MF.N) and Japanese bank Nomura confirmed earlier this year that they were in talks with the Fed about becoming primary dealers, but have given no updates since then.

A primary dealer is required to make bids or offers in the Fed's open market operations and to take part in U.S. Treasury securities auctions. The Fed also consults regularly with primary dealers as it gathers market intelligence and needs to be sure it is getting the best possible information.

For the current list of primary dealers, click here (Reporting by Richard Leong and Kristina Cooke; Editing by Dan Grebler)