NEW YORK Feb 20 The Federal Reserve will buy
bonds from a larger group of broker-dealers under a one-year
pilot program meant to strengthen the U.S. central bank's direct
involvement in financial markets.
The Federal Reserve Bank of New York, which carries out the
central bank's monthly purchase of $85 billion in Treasury and
mortgage bonds, now does direct business with 21 so-called
primary dealers such as JPMorgan Chase & Co and UBS AG
Under the pilot, the New York Fed said it will expand that
list by up to five more firms so that smaller dealers can
compete for the business, and so that it can augment
"operational capacity and resiliency in its monetary policy
The Fed bank outlined requirements for new broker dealers
and invited them to apply to participate in the pilot. It plans
to announce the names later this year.