Treasury Market’s Elite Dealers Club at Risk of Getting Smaller

The group of firms that trades directly with the Federal Reserve and is mandated to participate in US Treasury auctions is at risk of getting smaller following the takeover of Credit Suisse Group AG by UBS Group AG.

Both UBS and Credit Suisse have subsidiaries that are among the 25 so-called primary dealers, the key firms that help grease the wheels of the world’s biggest debt market. Takeover transactions involving two primary dealers have historically tended to result in an exit by one of the firms from the official list; the last time that happened was more than a ...