ESMA warns firms amid 'surge in trading by retail clients'

Investment firms face "even greater duties"

Pan-European regulator ESMA has warned investment firms they face "even greater duties" as waves of retail investors have flooded into the market since the start of the year at a time of heightened uncertainty.

ESMA wrote in a letter to regulated investment firms published on Wednesday (6 May) that "several" country-level European regulators had reported a "significant increase in the number of investment accounts opened by retail clients and a surge in trading by retail clients", who now face heightened risk "under these highly uncertain and unprecedented market circumstances". Market Movers Blog: Germany legal ruling questions European monetary policy - reports The regulator warned that "firms have even greater duties", particularly with regard to less sophisticated investors "who decide t...