The European Securities and Markets Authority (ESMA) has published its Report on Trends, Risks and Vulnerabilities No.2 2014, and the Risk Dashboard for Q3 2014.
Overall, ESMA’s finds that valuation risks in key market segments are rising and merit investor attention. In the first half of 2014, conditions in the EU’s securities markets, asset management industry and market infrastructures remained favourable. Prevailing optimistic market sentiment was at odds with sluggish underlying economic fundamentals, but in line with the ultra-low interest rate environment.
The report also covers developments which may present future vulnerabilities. In-depth analysis is provided on the following four topics:
- trading venue developments, operational risk and new challenges;
- the systemic relevance of securities financing markets in the EU;
- performance and risks of exchange-traded funds; and
View ESMA sees valuation risks in key market segments rising, 3 September 2014