A report on risk in European securities markets has been published by the European Securities and Markets Authority (ESMA). The Trends, Risks and Vulnerabilities Report, which covers market developments from January to June 2015, found that market risk in European securities markets has increased.

The authority has set its risk indicator for market risk at its highest level and states that this increase is due to “high volatilities and fluctuating performances across asset classes – all of which translates into elevated risks for investors, market infrastructures and the financial system at large”.

The main sources of overall risk are the improved but uneven economic outlook, ultra-low interest rates, high public sector indebtedness and potential weaknesses in market functioning.

ESMA also has indicators for credit risk, which is currently also rated 'very high', and liquidity risk, which is at a lower level but expected to intensify further, while contagion and operational risk are also at high and elevated levels respectively.

The report also made key findings on: the emergency measures put in place in June 2015 to address the Greek debt situation; the EU investment fund industry's increased appetite for risk, in light of low interest rates; and the role of capital markets financing in the EU economy.