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ETF Dictionary

ETF Term: What is AP? Role of Authorized Participant

What is AP? Term of AP in the stock market? briefly explain the definition and activities of Authorized Participants of Exchange-Traded Funds

AP là gì Thành viên lập quỹ ETF là gì
What is AP? Role of Authorized Participant?

1. What Is an AP?

  • The term AP stands for Authorized Participant 
  • An authorized Participant is a financial company( full services brokerage and depository banks) that enters into a legal contract with an ETF’s Fund manager to create and redeem shares of the ETF.
  • APs play a key role in the primary market for ETF activities that support investors to trading directly with the funds 

2. Role of Authorized Participant (AP)? 

  • On the primary market, AP acts as a dealer to create and redeem ETFs.
  • Get and submit the orders from investors to Funds managers 
  • AP is allowed to swap a portfolio of stocks and receive ETFs in return. 
  • Offering brokerage services to investors in exchange-traded transactions.
  • Fulfil reporting and information disclosure obligations as authorized by fund management companies. 

(Source: Vietnam Law Library 2023 ).

3. Vietnam ETF’s Authorized Participant and Market Market. 

  • KIS Vietnam is one of the top Authorized participants for 9 out of 13 ETFs in the Vietnam market.

  • At KIS Vietnam, our dedicated experts create a tailored service solution to fit your investment goals. Learn more about Vietnam ETF and whether they might be right for you about top ETFs in 2024 >>>