ESMA proposes key risk indicators for retail investors

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, today publishes an article  on the development of key retail risk indicators (RRIs) for the EU single market. The proposed RRIs highlight risks around:

• inexperienced investors;
• use of digital tools by younger investors; and
• spikes in overall trading during periods of market stress.

This development of RRIs is based on the new mandate ESMA recently received in this regard. ESMA is building on existing consumer analysis and indicators from the Trends, Risks and Vulnerabilities Reports to propose a conceptual framework that:

• defines key terms;
• considers

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