The first report on trends, risks and vulnerabilities in the EU securities markets has been published by the European Securities and Markets Authority (ESMA). One noteworthy finding is that EU securities markets and investment conditions have improved in 2012, while systematic risk in EU securities markets decreased in the fourth quarter of 2012. Collective Investment Schemes have benefitted from easing markets, particularly bond, hedge, real estate and exchange-traded funds.
The resurgence was aided by the ECB’s announcement of Outright Monetary Transactions in August, which eased pressure on Euro area sovereign bond markets. In the words of Steven Maijoor, ESMA Chair, the report provides impetus for securities regulators to consolidate the recent improvements in financial markets and enhance financial stability in the EU.
