Sentences with phrase «authorized participants»

Large and active funds tend to have a greater number of authorized participants.

They also have relationships with broker - dealer trading desks which act as authorized participants.

In return, authorized participants receive a block of equally valued shares called a creation unit.

If it is an exchange - traded fund, then the question becomes how well are authorized participants taking advantage of the spread to make the fund track the index well?

Like ETFs, most NextShares funds meet redemptions through Authorized Participants primarily in kind, 2 meaning that the fund distributes current portfolio holdings of securities rather than cash.

Only Authorized Participants such as market makers or institutions can purchase or redeem shares directly from the Fund.

Creations / Redemptions The process by which Authorized Participants transact directly with the fund on an «in kind» basis.

The shares are only available for purchase through certain authorized participants engaged by Grayscale.

Issuers can use the services of one or more authorized participants for a fund.

When market makers and other large investors accumulate sufficient shares of a NextShares fund, they can redeem their shares from the fund by transacting through intermediaries called Authorized Participants.

Authorized participants follow this market mechanism and help manage premium and discount to NAV trading.

Fund sponsors are responsible for providing that information only to authorized participants who are the direct owners of creation units.

When authorized participants — the special ETF market makers who have the ability to make and destroy ETF shares — wish to redeem their ETF shares, they can do so by trading them in to the issuer, which delivers an equivalent amount of the ETF's underlying holdings in an «in - kind» transaction.

NextShares that transact with Authorized Participants primarily in kind may experience less cash drag than mutual funds, which often need to hold cash to meet shareholder redemptions.

Mauro: Creations and redemptions are done primarily using an «in - kind» process where authorized participants (APs, or bond broker - dealers) deliver bonds in order to create shares or redeem bonds out of the ETF to redeem shares.

It is an information exchange for and between professionals by which information is accumulated and disseminated to enable authorized participants to prepare appraisals and other valuations of real property; and by which participants engaging in real estate appraisal contribute to common databases.

Are you saying Authorized Participants exert an upward pressure on the index by transmitting the demand for the index fund through to its underlying assets?

When a NextShares fund does issue or redeem shares, the transactions are made through designated authorized participants and are normally in kind when practicable, meaning that the fund receives or delivers securities rather than cash.

Deloitte's study explains the creation - redemption process, the role of authorized participants and the three different structures of ETFs.

Unlike Bitcoin, JPMorgan's blockchain Quorum is private, or «permissioned,» meaning that only authorized participants can join the network of machines that maintains it.

When I search for explanations of how index - tracking ETFs avoid tracking error, the following explanation is normally given: ETFs allow certain Authorized Participants to trade the underlying assets for shares of the fund.

If you're reading American books or websites, PNUs are called creation units, and designated brokers are called authorized participants.

However, shares are not individually redeemable, and may only be redeemed directly from the Fund by Authorized Participants, in very large creation / redemption units.

NextShares funds issue and redeem shares only in specified creation unit quantities in transactions by or through authorized participants.

The process of creation / redemption involves a few large specialized investors, known as authorized participants (APs).

Authorized participants receive the same value of the underlying security in the fund after selling shares.

For one, Pyongyang does not view Seoul as an authorized participant in peace talks, a former CIA official told CNBC.

Only an Authorized Participant may create or redeem Creation Units directly with the fund.

Each «creator» or «Authorized Participant» enters into an authorized participant agreement with Franklin Templeton Distributors, Inc., an affiliate of Franklin Advisers, Inc..

When you invest in GLD, you buy shares through an Authorized Participant, which is usually a large financial institution responsible for obtaining the underlying assets necessary to create ETF shares.

Only an Authorized Participant may create or redeem Creation Units directly with the Fund.

Authorized participants may wish to invest in the ETF shares long - term, but usually act as market makers on the open market, using their ability to exchange creation units with their basic securities to provide liquidity of the ETF shares and help ensure that their intraday market price approximates to the net asset value of the underlying assets.

The fund and its Authorized Participants in large block transactions occasionally adjust underlying warehouse assets.

ETF shares are created when an authorized participant deposits a portfolio of stocks into the fund in exchange for an institutional block of ETF shares (usually 50,000).

Plus, should premiums and discounts ever grow too large, ETFs have a built - in mechanism to realign prices with value through the creation / redemption process and the authorized participants that drive it.