Authorized Participant
An entity chosen by an exchange-traded fund's sponsor to undertake the responsibility of obtaining the underlying assets needed to create an ETF. Authorized participants are typically large institutional organizations, such as market makers or specialists. Investopedia Says:
The authorized participant plays a critical role in the construction of an ETF's creation units (large blocks of the ETF's underlying shares of equity or other assets). Related Terms:
Creation Unit
Exchange-Traded Fund
Intraday
Redemption
Sponsor
Trust |