The Federal Reserve Bank of New York on Monday increased the minimum net capital requirement for eligible primary dealers to $150 million from $50 million.
It also said that any firm applying to become a primary dealer must have had the "relevant operations" in place for at least one year.
The New York Fed said it "believes that a minimum net capital requirement is a prudent element of its counterparty credit risk management."
It also noted that it may demand higher capital under certain conditions — for example, if a dealer has a riskier business model.
There are currently 18 primary dealers, which include the leading Wall Street firms and large foreign institutions.
The New York Fed said the new regulations will apply to existing and new primary dealers. They also include a more formal application process and a clearer outline of the business standards expected of primary dealers.
It also includes a "clear notice that the New York Fed may take any number of actions against a noncompliant dealer." These could range from suspension from participating in Fed programs for a certain period, to termination of primary dealer status.