Authorized Participant

calender iconUpdated on January 31, 2024
etfs
investing

An authorized participant is a person who has been granted permission to engage in a particular activity or process. It is a term used in various contexts, including:

1. Clinical Trials:

  • In clinical trials, an authorized participant is a person who meets the eligibility criteria and has consented to participate in the study. They may be a patient, healthy volunteer, or control subject.

2. Financial Transactions:

  • In some financial transactions, authorized participants include shareholders, creditors, and other authorized individuals who have the authority to act on behalf of a company or organization.

3. Computer Systems:

  • In computer systems, authorized participants are users who have been granted permission to access a particular system or data. This includes employees, administrators, and authorized users.

4. Voting Systems:

  • In voting systems, authorized participants are eligible voters who have the right to vote in a particular election.
  • In legal proceedings, authorized participants include parties to the case, their attorneys, and other authorized individuals who have a vested interest in the case.

Generally, the term “authorized participant” refers to a person who has been specifically granted permission to participate in a particular activity or process. The specific definition and requirements for authorization will vary depending on the context.

FAQ's

What is the difference between authorized participants and market makers?

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Authorized participants create or redeem ETF shares, while market makers provide liquidity by buying and selling securities.

What is the difference between an authorized participant and an ETF sponsor?

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Who are called market makers?

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Does an authorized participant need to be a broker-dealer?

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