ESMA published its risk dashboard analysing liquidity, market, contagion and credit risks in European financial markets (no 1, 2015, covering the fourth quarter of 2014). ESMA also published a report on trends, risks and vulnerabilities in the EU securities markets(no 1, 2015, covering the second half of 2014). In its press release, ESMA noted that market conditions in the EU have remained tense, with high asset valuations, stable asset prices over time, but with rising short-term price volatility across key markets. There were strong price movements in foreign exchange and commodity markets, and overall capital market issuance for corporate funding continued to increase.

ESMA looked particularly at:

  • Fund investments in loans
  • Smart beta strategies
  • Monitoring systemic risk in the hedge funds industry
     

ESMA updates its report semi-annually, complemented by its quarterly Risk Dashboard.