Financial markets continue to face elevated risks heading into 2016, according to an evaluation published on Wednesday by the European Securities and Markets Authority (ESMA).

The ESMA report indicates that risk levels remained high in the third quarter, including elevated risks for investors, infrastructures, and the financial system at large. In particular, market risk indicators continued to remain “very high”, following a continuous build-up of risk in the preceding quarters, the ESMA report notes.

These elevated market risks are being driven by the low-interest-rate environment, high asset valuations, the potential spill-over from heightened emerging market risks, and fiscal and political developments within Europe. And, the regulators don’t see that changing in the year ahead. ESMA’s market risk outlook for 2016 remains unchanged at “very high,” according to the ESMA report.

In addition, credit risk remains at very high levels, the ESMA report says. It notes that liquidity risk isn’t quite as high, but that contagion risks and operational risk remain unchanged at high levels.

Overall systemic stress remains high too, the ESMA report says, driven by market uncertainty with sovereign debt in Europe, and rising concerns about emerging markets.