ESMA publishes report on trends, risks and vulnerabilities

ESMA has published its latest report on trends, risks and vulnerabilities (TRV) and the accompanying risk dashboard. The TRV identifies political and policy uncertainty, such as potential repercussions from the upcoming elections in some EU Member States, as the main risk drivers for 2017.

ESMA’s overall risk assessment remains unchanged: market and credit risks remain very high, which is the highest level, while liquidity and contagion risk remain high. The TRV covers market developments from July to December 2016 and provides an outlook for the next reporting period.

ESMA will update its report semi-annually, complemented by its quarterly risk dashboard, as part of its ongoing market surveillance.