Approved Participants
Definition of 'Approved Participants'Institutional investors who are allowed direct access to an exchange's trading environment. Approved participant status usually affords trade execution cost savings and the right to install trading terminals in client offices. |
|
Investopedia explains 'Approved Participants'Eligibility of approved participants is determined by specific criteria outlined by the respective exchange. For example, the Boston Options Exchange requires a potential approved participant to be a U.S.-based entity, a member of a designated options examining authority and have a minimum $200,000 in net equity.
Approved participants are able to take part in prearranged transactions (trades where the two parties agree on the transaction's terms prior to placing orders in the electronic trading system) such as block trades. |
Related Definitions
Articles Of Interest
-
Institutional Investors And Fundamentals: What's The Link?
Big-money sponsorship might make a company look good, but it's not always a reliable gauge of stock quality. -
Getting To Know The Stock Exchanges
Here are the answers to all the questions you have about stock exchanges but are too afraid to ask! -
6 Asset Allocation Strategies That Work
Your portfolio's asset mix is a key factor in whether it's profitable. Find out how to get this delicate balance right. -
American Vs. European Options
These two options have many similar characteristics, but it's the differences that are important. -
Pay Attention To The Proxy Statement
Don't overlook this overview of a company's well-being. -
How Risk Free Is The Risk-Free Rate Of Return?
This rate is rarely questioned - unless the economy falls into disarray. -
An Introduction To Gamma-Delta Neutral Option Spreads
Find the middle ground between conservative and high-risk option strategies. -
Shopping For A Financial Advisor
Finding your perfect advisor is as simple as shopping for a car. Read on to learn more. -
Nobel Winners Are Economic Prizes
Before you try to profit from their theories, you should learn about the creators themselves. -
The Options Premium
An options premium is the amount of money that investors pay for a call or put option. The two components that affect options pricing are the intrinsic value and time value. Matthew is interested ...
Free Annual Reports