easy · Market Microstructure hft
What is the primary function of an 'Authorized Participant' (AP) in the microstructure of Exchange-Traded Funds (ETFs)?
- To manage the ETF sponsor's legal filings and ongoing regulatory compliance obligations.
- To perform arbitrage that keeps the ETF's market price aligned with its Net Asset Value (NAV).
- To publish independent research reports covering the index's underlying constituent companies.
- To guarantee that every retail order receives price improvement over the quoted spread.
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