ESMA’s 2019 risk assessment agenda is focused on further developing ESMA’s proprietary data sources and their analytical exploitation:
· Market Data – as market data collected under its AIFMD, MiFID and EMIR mandates and others becomes available, ESMA is – in cooperation with the National Competent Authorities (NCAs) – finalising the framework for their processing, management and analysis.
· Risk Monitoring – ESMA will enhance its risk monitoring capacities, generating market statistics as well as risk indicators and metrics based on new proprietary data. Most importantly for 2019, ESMA will complement its ongoing market monitoring reports by publishing an annual statistical report series. This will cover:
o EU derivatives markets (EMIR data);
o EU alternative investment funds (AIFMD data);
o the cost and past performance of long-term retail investment products (UCITS, retail AIFs and structured retail products); and
o the first annual statistical report on MiFID II data.
· Analysis – ESMA will continue to conduct in-depth analysis around key topics, including market and fund liquidity, fund leverage, and the impact of innovation especially in the areas of market infrastructures and investment advice; and
· Impact Assessment – ESMA is set to continue its impact assessment activities, complementing the regulatory work programme, and will – with the NCAs – improve its stress testing work to facilitate more sophisticated future EU-wide tests on Central Counterparties as well as developing its approach to investment fund stress testing.
The 2019 Risk Assessment Work Programme is one of ESMA’s activity reporting documents, the others are the Regulatory Work Programme, the Supervisory Work Programme and the Supervisory Convergence Work Programme. Also, ESMA is preparing for any changes to our analytical and statistical framework that may need to be made when the UK leaves the EU.