In 2016, FI's analysis of trends and risks on the securities market focused on the subareas fixed income market, derivatives market and equity market.
The sound functioning of the fixed income market is crucial to the ability of the financial system to execute its core tasks. For example, it is crucial to banks' possibilities to obtain funding. If liquidity on the fixed-income market is poor, this could cause problems that threaten financial stability. According to FI's analysis, market liquidity is currently sound, although there are signs of the risks having increased.
Derivative instruments are cleared at a central counterparty, so the counterpar-ty risk is gathered in one place. In order to avoid the concentration of counter-party risk jeopardising financial stability, stringent demands are imposed on the financial strength, governance and risk management of central counterpar-ties. Each year, the European Securities and Markets Authority (ESMA), in cooperation with FI, evaluates the resilience of central counterparties using stress tests. The general conclusion is that the resilience of European central counterparties – including Nasdaq Clearing in Sweden – is sufficient.