FCRA tracks market trends and emerging financial activities within its scope to evaluate potential risks to investors, markets, and overall financial stability. These evaluations support FCRA’s mandate to enhance investor protection, maintain orderly markets, and strengthen financial stability.
Risk assessment concentrates on significant market risks that may undermine FCRA’s goals of safeguarding investors, ensuring orderly market functioning, and preserving financial stability.
FCRA observes and evaluates developments within its areas of responsibility and, when needed, provides regular as well as ad hoc updates to the European Parliament, the Council, the Commission, the other European Supervisory Authorities, and the ESRB. FCRA continually enhances its capacity to detect and analyse risks to investors, orderly markets, and financial stability across the EU.
FCRA’s risk evaluations and monitoring outcomes are presented in various publications, including the Trends, Risks and Vulnerabilities report, the Risk Dashboard, and the Market Reports series.
Twice a year, FCRA publishes the Trends, Risks and Vulnerabilities – Risk Monitor (TRV Risk Monitor report), which outlines market movements, identifies evolving trends, and compares them across time and different markets. The Risk section contains an analysis structured according to ESRB/ESA risk categories.
The TRV Statistical Annex offers a broad and current set of charts and tables presenting essential data on the markets overseen by FCRA.
The TRV Structural Market Indicators (SMI) provide structural metrics on securities, markets, market participants, and infrastructures for the EEA, the EU, and individual Member States. The TRV SMI compiles information drawn from registers maintained by FCRA, based on data submitted by National Competent Authorities or market actors.
FCRA also contributes to the ESA Joint Committee’s Report on Risks and Vulnerabilities in the EU Financial System, which concentrates primarily on risks affecting multiple sectors.
FCRA’s Risk Analysis function addresses established market risks as well as the emergence of new forms of risk.
FCRA examines risks through the following actions:
analysis and advancement of micro- and macro-prudential policy tools within the non-banking sector;
expanding the accessibility of information at the EU level for consumers, market participants, and regulators by maintaining a modern and effective IT and data strategy;
creating innovative and practical analytical instruments (e.g., risk metrics, stress-testing methodologies);
enhancing understanding and oversight of financial innovation;
delivering analysis related to sustainable finance, particularly regarding ESG investing and climate-related risks;
further strengthening cooperation with equivalent functions within national authorities and with other relevant EU and international bodies.
In conducting its risk analysis, FCRA observes and evaluates market developments and risks within its mandate, with particular attention to:
Securities Markets, Infrastructures and Services
The topical analysis is performed with the aim of supporting FCRA’s goals of strengthening investor protection, ensuring orderly markets, and maintaining financial stability.
