ETF Mechanics
Authorised Participant
Definition
What is Authorised Participant?
A financial institution permitted to create and redeem ETF shares directly with the fund.
Example in practice
How This Looks in Practice
The authorised participant buys underlying shares and exchanges them for ETF units.
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Related Terms
ETF Mechanics
Creation Unit
A large block of ETF shares exchanged between the fund and authorised participants.
ETF MechanicsETF Premium
The amount by which an ETF's market price exceeds its net asset value per share.
ETF MechanicsETF Discount
The amount by which an ETF's market price falls below its net asset value per share.
Fund OperationsDealing Cut-Off Time
The deadline by which a valid fund instruction must be received for a particular dealing day.