EU securities regulator flags contagion risks, closet indexing dangers

On the 09.03.20 at 7:28AM


Tuba Raqshan

The European Securities and Markets Authority (ESMA) launched its report on trends, risks and vulnerabilities (TRV) that underlined the risks of market-wide stress due to Covid-19 turmoil and regulating closet index funds for investor protection.

The Covid-19 risks materialised largely due to overstretched valuations before the pandemic and some part of the market collapse is because these valuations were high, said Steffen Kern, chief economist and head of risk analysis,

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