Authorized Participant is a broker appointed/selected by the ETF sponsor in order to create shares from the underlying assets required for ETF.
These Authorized Participant's create shares and securities from underlying assets. These authorized participants act as middlemen who deliver shares and receive assets and vice versa.
The authorized participant has a very critical task in the creation of ETF. The Authorized Participants also redeem shares when the buyer wants to sell or return them.
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