Authorized participant

Authorized Participant

An institutional investor that takes part in the creation of an exchange-traded fund (ETF). An exchange-traded fund is an investment company that tracks all the stocks on a particular exchange. When an ETF is created, an authorized participant buys the shares that are to underlie it and gives them to the fund's sponsor in exchange for units (or shares) in the new ETF. The authorized participant then sells these units to investors. Authorized participants are handpicked by the sponsor of the ETF.

Authorized participant.

An authorized participant is an institutional investor who takes part in the creation of exchange traded fund (ETF) shares.

The ETF sponsor selects authorized participants to assemble creation units, which are baskets of securities in the index that underlies the ETF. Each creation unit corresponds to a fixed number of shares in the ETF.

The authorized participant transfers the creation unit to the ETF sponsor in exchange for shares in the ETF, which can then be sold to other investors. Authorized participants may also redeem ETF shares by trading them back to the ETF sponsor for corresponding baskets of securities.

Since ETFs exchange shares only for corresponding baskets of securities and don't buy back shares investors wish to sell, they don't have to keep cash on hand or liquidate securities to meet redemption demands. As a result, ETFs are able to track the underlying index more closely and achieve tax efficiency.

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Instead, certain financial institutions known as authorized participant (AP) purchase and redeem ETF shares directly from the ETF in creation units.
That is, the authorized participant has to bring a scaled replica of the ETF's portfolio to receive the corresponding number of shares.
Modern monitoring systems share the collected information in graphical trend and table data format for any authorized participant.
lt;br>The Authorized Participant then sells the new units to investors at an intraday premium does not show up during the day and the advertised price of the ETF is brought back to NAV at the end of the day.
The new ETF interface, which includes first-to-market functionality, allows Authorized Participant partners to more efficiently place creation and redemption orders directly with ALPS, streamlining the process and creating a more controlled environment.
Thus, each ETF will provide one authorized participant with a one-time opportunity to redeem the respective odd lot unit at its split-adjusted NAV, or at the NAV on such date the authorized participant seeks to redeem the odd lot unit.
Thus, the Funds will provide one authorized participant with a one-time opportunity to redeem the odd lot unit at the split-adjusted NAV or the NAV on such date the authorized participant seeks to redeem the odd lot unit.
Alternatively, the Trust or any Authorized Participant will arrange to send you the prospectus if you request it by calling toll free at 1-866-320-4053 or contacting State Street Global Markets, LLC, One Lincoln Street, Attn: SPDR Gold Shares, 30th Floor, Boston, MA 02111.
This process ensures that the authorized participant is completely in compliance with all regulatory and exchange requirements when trading ETFs.
Alternatively, the Trust or any Authorized Participant will arrange to send you the prospectus if you request it by calling 1-866-320-4053 or contacting State Street Global Markets, LLC, One Lincoln Street, Attn: SPDR Gold Shares, 30th Floor, Boston, MA 02111.
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.

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