The European Securities and Markets Authority (ESMA) published on Wednesday, 20 July an article on the development of key retail risk indicators in the EU single market. Retail risk monitoring aims to provide policymakers and supervisors with the information they need to better protect retail investors.
The proposed indicators highlight risks relating to: - inexperienced investors; - the use of digital tools by young investors; - spikes in trading during periods of market stress.
The ESMA has used existing consumer analysis and indicators from the Trends, Risks and Vulnerabilities reports as a basis. It proposes specific ‘proof-of-concept indicators’.
The European authority will continue to refine and develop indicators to strengthen its risk monitoring in this area. In particular, it plans to refine the set of indicators, developing new ways of representing the data fields examined. It also wishes to standardise the methodology by adopting common conventions and technical definitions. Finally, it is considering extending the set of indicators to cover other financial instruments, such as derivatives.
To read the ESMA article: https://aeur.eu/f/2qp (Original version in French by Anne Damiani)