Authorized participants (APs) are one of the major parties at the center of the ETF creation/redemption mechanism, and as such, they play a critical role in ETF liquidity. In essence, APs are ETF liquidity providers that have the exclusive right to change the supply of ETF shares on the market. Role Of Authorized Participants When an ETF company wants to create new shares of its fund, whether to launch a new product or meet increasing market demand, it turns to an AP, which may be a market maker, a speci ...