Whereas the work of APs is taken into account the “main” market, one other key participant, market makers, is required within the “secondary” market, for instance on exchanges, the place many of the buying and selling is completed. Market makers construct on the function APs fill by shopping for ETF shares when others wish to promote them, and vice versa. If costs get out of whack, they’ll earn a revenue by buying and selling to nudge them again in line. In some instances, market makers additionally play the function of the AP.
