EU financial regulators warn against risks for EU financial markets, Brexit, asset repricing and cyber-attacks key risks

The ESA report for the second half of 2017 outlines the following risks as potential sources of instability:

• sudden repricing of risk premia as witnessed by the recent spike in volatility and associated market corrections;
• uncertainties around the terms of the UK’s withdrawal from the EU; and
• cyber-attacks.

The ESA report also reiterates their warning to retail investors investing in virtual currencies and raises awareness for risks related to climate change and the transition to a lower-carbon economy.