Who can trade trackers?
· Fund managers (who also issue trackers). They manage the assets of the fund, and ensure the assets’ performance corresponds exactly to that of the relevant index. Fund managers are involved in creation and redemption with professional market participants. · Professional market participants. They can ask fund managers to create and redeem trackers on the primary market and can trade trackers on the secondary market. · Liquidity providers. They operate on the secondary market, providing continuous quotes in order to stimulate trading in trackers. Some liquidity providers are also market participants on the primary market. · Investors. They buy and sell trackers on Euronext’s secondary market.
