SYSTEMIC FRAGILITY IN EUROPEAN CAPITAL MARKET INFRASTRUCTURES: A REVIEW OF FINANCIAL, OPERATIONAL, CYBER, AND GEOPOLITICAL RISKS

Amalia HOFFMANN

doi:10.65672/fs.2026.3.4

SYSTEMIC FRAGILITY IN EUROPEAN CAPITAL MARKET INFRASTRUCTURES: A REVIEW OF FINANCIAL, OPERATIONAL, CYBER, AND GEOPOLITICAL RISKS

Authors

Amalia HOFFMANN - Doctoral School of International Business and Economics, Bucharest University of Economic Studies, Romania.

Landing page: https://www.icfm.ro/fs.icfm.ro/articles/vol30i3p91-105.html

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DOI: 10.65672/fs.2026.3.4

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Abstract

This paper reviews the academic and regulatory literature on systemic fragility in European capital market infrastructures (CMIs), focusing on the interaction between financial, operational, cyber, and geopolitical sources of risk. Existing reviews typically examine individual dimensions of systemic risk, such as financial contagion, cyber resilience, or operational risk, in isolation. In contrast, this review integrates these complementary strands of the literature into a unified perspective centred on European capital market infrastructures. The paper synthesises recent theoretical and empirical evidence on the mechanisms through which shocks propagate across European financial markets, highlighting the role of financial interconnectedness, operational dependencies, cyber vulnerabilities, and geopolitical uncertainty in amplifying systemic fragility. The review shows that systemic vulnerability is inherently multidimensional and cannot be adequately assessed through traditional market-based indicators alone. Instead, the resilience of European CMIs depends on the interaction between financial, operational, technological, and geopolitical factors. These findings underscore the need for integrated macroprudential and operational resilience frameworks capable of addressing the evolving sources of systemic vulnerability and strengthening the resilience of European capital market infrastructures.

JEL Classification

G01, G10, G20

Keywords

systemic risk, financial stability, operational vulnerabilities, geopolitical shocks

How to cite

Amalia HOFFMANN (2026). SYSTEMIC FRAGILITY IN EUROPEAN CAPITAL MARKET INFRASTRUCTURES: A REVIEW OF FINANCIAL, OPERATIONAL, CYBER, AND GEOPOLITICAL RISKS. Financial Studies, 30(3), 91-105. DOI: 10.65672/fs.2026.3.4.

RePEc record

Handle: RePEc:vls:finstu:v:30:y:2026:i:3:p:91-105