Market Abuse / Surveillance in Netherlands

Key dates

22 July 2026

– AFM/AMF joint press release and position paper “From design to delivery – five enablers for effective European supervision” published, formally articulating the five enablers for centralised EU‑level supervision under the MISP

TBD (MISP legislative timeline)

– Specific dates for adoption and phased implementation of the Market Integration and Supervision Package will follow the EU legislative process; firms should anticipate a multi‑year transition with key milestones likely aligned to ESMA governance and funding reforms and initial scopes of direct supervision

Suggested considerations

• Review and update the firm’s supervisory engagement strategy to include structured, proactive engagement with ESMA (not just NCAs), anticipating more direct interactions, thematic reviews, and data requests at EU level.
• Assess current risk‑assessment and risk‑reporting frameworks to ensure they are compatible with a risk‑based and adaptive supervisory approach, including the ability to demonstrate how your firm identifies, measures, and mitigates emerging risks and new business models.
• Conduct a gap analysis of data architecture and regulatory reporting, focusing on data quality, standardisation, and ability to feed into centralised EU data hubs; plan upgrades to systems, controls, and data governance to support ESMA‑level data centralisation.
• Prepare for potential changes in supervisory levies and funding, by modelling the impact of EU‑level ESMA fees in addition to national contributions and incorporating them into medium‑term budgeting and pricing strategies.
• Review governance arrangements, including board oversight, senior management responsibilities, and internal escalation processes, to ensure they can meet higher expectations of independent, transparent, and accountable governance under an ESMA‑centric model.

What changed

• - ESMA is explicitly positioned as the central supervisory authority for selected capital‑markets activities, with national competent authorities (NCAs) expected to operate within a more formalised...
• Supervisory objectives are reframed towards risk‑based and adaptive supervision, meaning firms should expect more differentiated supervisory intensity based on risk profile, business model, and...
• The paper supports proportionate and transparent funding for ESMA, indicating a future where firms may be subject to EU‑level supervisory levies or fee structures in addition to national regimes,...
• AFM and AMF call for independent, transparent, and accountable EU‑level supervisory governance, foreshadowing changes to ESMA’s decision‑making bodies, oversight processes, and accountability...
• Data centralisation is identified as a core enabler, implying a stronger move towards EU‑wide data hubs, harmonised reporting formats, and central access for ESMA to transaction, position, and...

Key dates

July 2020

– Start of the period in which Arrowstreet’s incorrect calculation methodology led to systematically incorrect net short position notifications to AFM and underdisclosures to the public

November 2024

– End of the period during which Arrowstreet violated short selling rules through inaccurate notifications and disclosures of its net short positions in Just Eat Takeaway.com and Galapagos

20 April 2026

– AFM imposes an administrative fine of €297,000 on Arrowstreet Capital, LP for the systematic incorrect notifications and underdisclosures of net short positions

22 April 2026

– AFM publishes the enforcement notice stating that the case has been settled via a simplified procedure and is closed

Suggested considerations

• Review and document the firm’s methodology for calculating net short positions in EU‑listed shares, ensuring alignment with the EU Short Selling Regulation and AFM’s thresholds and definitions, including aggregation rules and treatment of derivatives.
• Perform a comprehensive back‑testing and reconciliation of historical and current net short position calculations against trade data, positions and corporate actions to identify any systemic discrepancies or underreporting risks.
• Implement or enhance controls that validate short position calculations prior to submission, including independent second‑line checks, exception reporting, and automated variance checks for large movements or threshold breaches.
• Map all AFM short selling notification and disclosure thresholds and timing requirements into the firm’s surveillance and reporting systems, ensuring automated alerts when positions reach, exceed or fall below relevant levels.
• Establish robust governance over short selling reporting, including clear ownership between trading, operations, risk and compliance, formal sign‑off procedures, and regular reporting to senior management on short‑selling compliance.

What changed

• - AFM has reaffirmed strict enforcement of notification and disclosure obligations for net short positions in shares admitted to trading on Euronext Amsterdam, including the expectation of accurate...
• The case confirms AFM’s interpretation that systematic underreporting (wrong figures in 101 notifications) and underdisclosure to the public (wrong figures in 85 cases) constitutes a material breach...
• AFM emphasises that net short positions must be notified promptly and accurately, and that disclosures above the public threshold are a key tool for market participants to understand negative...
• AFM demonstrates that self‑reporting, prompt correction, full cooperation and remediation can result in a reduced fine and simplified settlement, signalling a clear incentive structure for firms to...
• The publication reinforces that AFM will use the short selling register and underlying notifications to monitor for market abuse, market distortion and systemic risks, increasing scrutiny on firms...