Suppose you are an investment management company, that is a client of the bank, has been using Exchange Traded Funds (ETF's) as part of its capital allocation process.

Firstly, explain in details the underlying mechanics of the process whereby ETF's are created and redeemed by Authorized Participants.

Secondly, explain in an executive summary of the ETF market-place by using up-to-date statistics to make reference to the size of the market, the range of products available and the fee structures of ETF's.

Thirdly, in the light of problems that arose in February 2018 for ETF's that took a view on market volatility, explain in general terms how you would address concerns about possible risks with respect to certain sections of the ETF market.

Fourthly, since you have some exposure to high yield bond ETF's, how would you react with respect to liquidity risks that might be associated with exiting these ETF's.