What are Approved Participants
Breaking Down Approved Participants
Benefits to Approved Participants
Since each exchange is different, the benefits and associated costs will vary.
For example, on the NYSE, advantages include ultra-low latency execution of orders, including the ability to co-locate trading servers next to exchange servers. Access to advanced order types and dark pools. Rebates on trades for adding liquidity (as opposed to executing against orders that are already there), and a further reduction in costs for meeting volume thresholds. Approved participants also have access to opening and closing auctions.
Approved participants on all exchanges enjoy cost savings on trades as a result of cutting out third parties, and have direct access to the exchange via installed connections.