The Spanish Securities Commission (CNMV) published its December 2024 Financial Stability Note, reporting that its market stress indicator stayed in the low-risk zone during the second half of 2024 and closed the year at 0.13. The indicator has been revised from 1 January 2025 after CNMV assessed three potential methodological changes and adopted two, with a slight increase to 0.21 in early 2025 linked to higher volatility metrics. The indicator is presented as a real-time gauge of systemic risk for Spain’s financial system and aggregates 18 inputs across six segments covering equities, fixed income, financial intermediaries, the money market, derivatives and foreign exchange, with the main deviation from low risk in 2024 occurring in early August amid market turbulence. The risk assessment highlights elevated geopolitical risks, possible divergence in monetary policy across the Atlantic and medium- to long-term risks including cybersecurity, cryptoassets and sustainability, while also flagging market risk in equities and partially easing credit risk alongside interest-rate cuts; in non-bank financial intermediation, liquidity and leverage metrics do not point to relevant vulnerabilities, but fund interconnectedness appears very high based on measures of fixed-income portfolio similarity. The note also includes year-end market data and selected sector indicators, including average daily trading on the continuous equity market of EUR 1.223 billion, total Spanish share trading of EUR 336.805 billion in the second half of the year, investment fund assets just under EUR 394 billion at end-September, rising retail participation in Ibex 35 trading, ESG-labelled debt issuance by Spanish issuers of EUR 20.570 billion in 2024, and cryptoasset market capitalisation above USD 3.7 trillion in December.
Spanish Securities Commission (CNMV) 2025-02-03
Spanish Securities Commission publishes Financial Stability Note and updates its real-time systemic market stress indicator
The Spanish Securities Commission (CNMV) reported its market stress indicator stayed in the low-risk zone in late 2024, closing at 0.13, but rose to 0.21 in early 2025 due to increased volatility. This real-time systemic risk gauge aggregates 18 inputs across six segments, with notable deviations in August 2024 amid market turbulence. The report highlights elevated geopolitical risks, potential monetary policy divergence, and medium- to long-term risks, including cybersecurity and cryptoassets, while noting high fund interconnectedness in non-bank financial intermediation.