ESMA published today its second risk monitoring report of 2026, setting out the main risks and vulnerabilities in EU financial markets. While markets have remained resilient, stretched technology valuations and heightened geopolitical tensions are testing this resilience, in a climate of persistent inflation and weaker economic growth. Despite heightened market volatility and event-driven uncertainty, strong performance in technology and AI-related sectors has been helping to sustain fast recovery of investor optimism and financial markets valuations. 

ESMA has issued a statement to clarify expectations for how unauthorised crypto asset service providers (CASPs) must wind down activities while also protecting investors after the end of the transitional period under the Markets in Crypto-Assets Regulation (MiCA) on 1 July 2026.

ESMA has published its final report on the simplification of transaction reporting, setting out a clear path towards a ‘Report Once’ approach. ESMA’s review confirms that the main drivers of cost and complexity include frequent and unsynchronised regulatory changes, duplication of reporting across frameworks and channels, and dual-sided reporting and associated reconciliation processes.  

ESMA published its Position Paper on “Building more effective and attractive capital markets in the EU”. The Paper includes 20 recommendations to strengthen EU capital markets and address the needs of European citizens and businesses.

ESMA will focus on strengthening supervision, enhancing the protection of retail investors, fostering effective markets and financial stability, enabling sustainable finance, as well as facilitating technological innovation and effective use of data.