BMO Exits the European ETF Business

The video discusses the exit of BMO Asset Management and IMC from the European ETF market due to competitive pressures and the need for scale. It highlights the aggressive fee cuts by major players like Vanguard and iShares, and the challenges smaller firms face in scaling up. The discussion also covers the importance of product closures and launches as indicators of market health, and compares trading practices in Europe and the US, noting the aggressive nature of over-the-counter trading in Europe.

What is the main reason BMO Asset Management and IMC are exiting the European ETF market?

• High competition and difficulty in scaling

• Decline in investor interest

• Regulatory challenges

• Lack of brand recognition

How does the speaker view the closure of ETF products?

• As a sign of market health

• As a sign of market failure

• As a sign of declining investor interest

• As a sign of regulatory issues

What is necessary for the ETF market to remain healthy, according to the speaker?

• Issuers should continue launching new products

• Issuers should increase fees

• Issuers should stop launching new products

• Issuers should focus only on existing products

How does trading in Europe differ from trading in the United States?

• More trading is done on exchanges in Europe

• Trading is less aggressive in Europe

• More trading is done over-the-counter in Europe

• Trading is more regulated in Europe

What challenge does IMC face in the European market?

• Regulatory hurdles

• Limited product offerings

• Inability to offer competitive pricing

• Lack of investor interest