Knowing Roles

Knowing Roles: There is some news today about Wall Street firms that makes it suitable to quickly talk about a couple of roles in the ETF process.

Custodian bank--this is where ETF assets are held. To be clear, this is where the actual stocks that a fund owns are kept along with any cash--this is the fund.

Market makers are not custodian banks where ETFs are concerned. There is news about a market maker and the shares of that market maker are down dramatically. This has no impact on the value of a basket of stocks held at a bank.

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