What are Authorised Participants?
Authorised Participants are an important part of managing ETFs and play a critical role in their underlying liquidity.
As you are probably aware, shares can trade on the primary (e.g IPO) or secondary (e.g ASX) markets. Similar to shares, ETFs do as well. Authorised Participants are appointed by the Responsible Entity of the ETF to trade in the primary market. After that, investors trade ETFs as per normal on the stock market.
“Put simply, Authorised Participants provide much needed liquidity to ETFs when traded on the stock market. They work with the Responsible Entity to create and redeem shares to keep ETFs priced fairly.”
What do Authorised Participants do?
Put simply, Authorised Participants provide much needed liquidity to ETFs when traded on the stock market. They work with the Responsible Entity to create and redeem shares to keep ETFs priced fairly.
In the main, Authorised Participants are generally invisible to you and your financial adviser or broker, going about day-to-day doing their important role.
Just so that you know, the Authorised Participant for eInvest Funds is Macquarie Securities Australia, a subsidiary of Macquarie Bank and Deutsche Bank.
For more information, please read the Fund’s PDS on the role and responsibilities of an Authorised Participant.
