The European Securities and Markets Authority (ESMA) has made some changes to its risk assessment as a result of the outcome of the UK referendum on EU membership.
The overall assessment of risk levels in EU markets under ESMA’s remit, as indicated in the Risk Dashboard No.2, 2016 remain unchanged for the time being, characterised by continued very high credit and market risks.
The risk outlook, however, has changed for the current and next quarters with the uncertainty reflected in increased market, liquidity and contagion risks going forward, as political and event risks have intensified, and the macroeconomic environment may deteriorate. Any crystallisation of these risks might also impact other segments in the ESMA remit.