These products do not sell or redeem their shares at net asset value (NAV) except to authorized participants
At a minimum, the Automated Activity Tracking and Access System shall incoiporatc on-line and telephony check in/check out services to (1) register authorized participants
, (2) issue hunting/fishing/trapping/firewood permits, collect user fees, (3) track user access on installation, (4) generate reports and (5) communicate important announcements regarding rules and safety awareness to authorized participants
The growing number of investors in the first-ever, and so far the only, exchange-traded fund in the country is a reflection of the investing public's demand for new and exciting financial products that suit their needs," said Gonzalo Ordonez, president of First Metro Securities Brokerage Corporation, the market maker and one of the authorized participants
of the First Metro ETF.
However, shares may only be redeemed directly from a Fund by Authorized Participants
, in very large creation/redemption units.
The SECP circular has stipulates the regulatory requirements for the authorization of ETFs, including investment restrictions, issuance and redemption of creation units, pricing and dealing, additional disclosure requirements, role of the authorized participants
, and fees and expenses.
The regulations broadly cover the listing procedure for ETFs, trading and clearing and settlement of ETF units, disclosure requirements for asset management companies, obligations of authorized participants
and fee structure.
At present, one of the safest methods on the market is virtual data exchange in a Cloud to which only authorized participants
Because ETF units may be created or redeemed throughout business hours, arbitrageurs are constantly watching for disparities in their pricing, relative to the net asset value of the securities held in each ETE The ability of authorized participants
(primarily large brokerage and arbitrage securities firms that are allowed to exchange baskets of individual, specified constituent securities for ETFs) to create and redeem shares acts to mitigate the variations between market price and underlying values.
Banks and brokerage houses acting as Authorized Participants
contribute the Basket to the ETF and in turn receive "Creation Units" priced at net asset value from the ETF Trustee.
The Sudzus court began by recognizing that the legislature has specifically authorized participants
in IDES hearings to be represented by nonattorneys.
Only authorized participants
may post material, which eliminates the problem of spam and other unwanted communications.
Depository institutions and other authorized participants
use this service to send and receive large-value, time-critical payments.