Authorized Participant (AP)

Authorized participants (APs) take on the role of reception desk for requests from institutional investors for creation and cancellation (redemption) in the primary market. On investors’ demand, APs request to the collective investment company creation or redemption of ETF. APs facilitate ETF trading by requesting creation and redemption of ETFs, and try to match the market price to the NAV. To do this, more than one of the APs should make an agreement with the collective investment management company to be a liquidity provider of a product.

Rol of Authorized Participants
Role of Authorized Participants
Role as Aps (Authorized Participants)
(1) Request for creation / cancelation of ETFs
(2) Change payment, etc. to asset equivalent to creating unit
Role as Lps (Liquidity Provider)
(3) Provide liquidity
  • (1) Request ETF creation/ redemption
  • (2) Convert payment to assets equivalent to CU
  • (3) Provide liquidity