The Dutch Authority for the Financial Markets (AFM) today announced that it has imposed an administrative fine of €297,000 on Arrowstreet Capital Limited Partnership for the systematically incorrect notifications of its net short positions in two companies listed on Euronext Amsterdam. Arrowstreet thus violated the rules on short selling between July 2020 and November 2024.

Arrowstreet is an institutional investment firm established in the United States. It held short positions in the companies Just Eat Takeaway.com and Galapagos, which are listed on Euronext Amsterdam.

Due to an error in its calculation methodology, Arrowstreet notified incorrect net short positions to the AFM a total of 101 times. The short positions were more substantial than notified, with differences of several tens of millions of euros in many cases. In 85 of those cases, Arrowstreet violated not only its notification obligation to the AFM but also its disclosure obligation to the public.

After discovering the error, Arrowstreet proactively informed the AFM of the incorrect notifications, promptly corrected them, cooperated fully with the AFM’s investigation and took measures to prevent a recurrence. This approach led the AFM to reduce the fine. Arrowstreet accepted the fine and the case was settled through the simplified procedure. The case is therefore closed.