TITLE: Netherlands' Financial Markets Authority Fines Arrowstreet Capital for Incorrect Short Position Reporting
BODY:
On April 20, 2026, the Dutch Authority for the Financial Markets (AFM) imposed an administrative fine of €297,000 on Arrowstreet Capital, Limited Partnership for systematically incorrect reporting of net short positions in two companies listed on Euronext Amsterdam between July 2020 and November 2024.
Arrowstreet Capital, a United States-based institutional asset manager, held short positions in Just Eat Takeaway.com and Galapagos. Due to an error in its calculation methodology, Arrowstreet failed to correctly report its net short positions to the AFM on 101 occasions. The reported positions were substantially lower than actual positions, with discrepancies often amounting to tens of millions of euros. In 85 instances, Arrowstreet violated both its reporting obligation to the AFM and its public disclosure obligation. These violations contravened short selling regulations applicable in the Netherlands.
Accurate reporting of net short positions is essential for market integrity. The AFM uses such reports to monitor short positions for market abuse, market disruption, and systemic risks. Public disclosure of significant individual short positions provides market participants with critical information regarding negative market expectations for specific companies, enabling investors to make better-informed investment decisions and reducing information asymmetry.
Following discovery of the error, Arrowstreet voluntarily notified the AFM, promptly corrected the filings, fully cooperated with the AFM's investigation, and implemented measures to prevent recurrence. In recognition of this cooperative approach, the AFM reduced the fine. Arrowstreet accepted the penalty, and the matter was resolved through simplified proceedings.
REFERENCE:
Dutch Authority for the Financial Markets (AFM) – Boetebesluit Arrowstreet Capital