Under the Quota Management System quota is a share in a fish stock. In every fish stock there are 100 million shares. Investors buy and sell these shares. Every year quota owners receive ACE, Annual Catch Entitlement for each quota share they hold. This is an entitlement to catch a specific amount of fish, in weight, during the fishing year. Quota holders can retain their quota shares and buy or sell their ACE during the year.

The amount of ACE each quota owner receives is dependent on the Total Allowable Commercial Catch (TACC) for that year. The Minister of Fisheries decides the TACC for each fish stock. Every commercial fisher must have ACE to cover their catch. If a fisher cannot source enough ACE to cover their catch the fisher is charged a penalty fee.