An authorised participant is a firm entitled to create and redeem exchange-traded fund shares directly with the fund, arbitraging any gap between the fund's price and the value of its basket.
instruments and markets · updated 2026-09-08
Where does authorised participant come up?
This term is used in the following manipulation techniques, each explained in full on
its own page.
ETF and NAV abuse— ETF and NAV abuse exploits a fund's valuation of illiquid or stale-priced holdings, creating or redeeming shares at a ratio that transfers value from the investors who remain in the fund.
See also
Exchange-traded fund— An exchange-traded fund is a pooled vehicle whose shares trade on an exchange and are created and redeemed in large blocks by auth…
Net asset value— Net asset value is the per-share value of a fund's holdings. For funds holding illiquid or stale-priced assets, the inputs to net …