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, the client has requested a detailed explanation of the underlying mechanics of the process whereby ETF’s are created and redeemed by Authorized Participants. Secondly, provide the client with an executive summary of the ETF market-place. You should use 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 that the client has expressed about possible risks with respect to certain sections of the ETF market. Fourthly, the client has some exposure to high yield bond ETF’s and would like you to provide guidance as to liquidity risks that might be associated with exiting these ETF’s.