MARKETS, INFRASTRUCTURE & INVESTORS
Markets, Infrastructure & Investors
The table and accompanying analysis are up-dated quarterly and published in our ESMA Risk Dashboard (RD) series:
|Latest edition of the ESMA RD||All ESMA RDs|
Extensive market monitoring and in-depth topical analyses are provided in our semi-annual Reports on Trends, Risks and Vulnerabilities (TRV):
|Latest edition of the TRV|
Statistical annex to our semi-annual Reports on Trends, Risks and Vulnerabilities (TRV):
|Latest edition of the Annex|
ESMA Annual Statistical Reports (ASR)
|ASR on EU Alternative Investment Funds - 2019|
|ASR on the performance and cost of retail investment products - 2018|
Rigorous analytical work addressing issues relevant to ESMA, providing a topical complement to our continuous risk monitoring, and conceptual and empirical evidence to inform policy-making and supervision.
|ESMA Working Papers|
|ESMA Economic Reports|
Assessing risks to investors, markets and financial stability
In order to protect investors, ensure orderly markets and safeguard financial stability it is necessary to identify and assess, at an early stage, trends, potential risks and vulnerabilities stemming from the micro-prudential level, across borders and across sectors.
Particular attention is paid to any systemic risk posed by financial market participants or related to financial innovation that may impair the operation of the financial system or the real economy.
ESMA monitors and assesses such developments in the area of its competence and, where necessary, informs the European Parliament, the Council, the Commission, the other European Supervisory Authorities and the ESRB on a regular and, as necessary, on an ad hoc basis. ESMA continuously strengthens its capabilities to identify and assess risks to investors, orderly markets and financial stability in the EU.
Risk assessment focuses on important market risks that could harm ESMA’s objectives of investor protection, orderly markets and financial stability. This entails both the monitoring of known market risks and the identification of new manifestations of risks through the following actions:
- analysis and development of micro- and macro-prudential policy instruments in the non-banking sector;
- enhancing the availability of information at EU level for investors, market participants and regulators via an up to date IT and data strategy;
- developing innovative and practical analytical tools (e.g. risk indicators, stress testing);
- improving insight in and oversight of financial innovation; and
- further intensifying cooperation with similar functions at national authorities and other relevant international and EU authorities.
ESMA’s Reports in the Area of Market surveillance
Twice a year, ESMA produces the Trends, Risks and Vulnerabilities report (TRV report) composed of three parts:
- the Trends part highlights market developments, identifies market trends and compares them over time and across markets;
- the Risk part is an analysis based on ESRB/ESA categories; and
- the Vulnerabilities part is composed of topical articles on current and emerging vulnerabilities.
- The TRV report is complemented by the quarterly Risk Dashboard. Two occurrences of the Risk Dashboard are integral components of the TRV. The other two are stand-alone publications. This report analyses various risks in securities markets at EU level: systemic risk, liquidity risk, market risk, contagion risk, credit risk and operational risk.
ESMA also takes part in the production of the ESA Joint Committee’s Report on Risks and Vulnerabilities in the EU Financial System which focuses mainly on cross-sectoral risks.
ESMA’S ANNUAL STATISTICAL REPORTS
ESMA's risk assessment draws on data and statistics sourced and managed through an integrated approach, ensuring high quality, efficient management and effective use. This is particularliy the case for the proprietary data that ESMA collects. As part of this integrated approach we have established an Annual Statistical Report series. These reports complement ESMA’s ongoing market monitoring through the TRV report and the Risk Dashboard.
In its Annual Statistical Report series ESMA currently covers:
- EU derivatives markets, based on EMIR data,
- EU alternative investment funds, drawing on AIFMD data, and
- the cost and past performance of long-term retail investment products (UCITS, retail AIFs and structured retail products).