Regulatory Alerts2026-04-22
Arrowstreet Capital fined for incorrect reporting of short positions
The Dutch Authority for the Financial Markets (AFM) has imposed a €297,000 administrative fine on Arrowstreet Capital, Limited Partnership for failing to correctly report and disclose net short positions in Just Eat Takeaway.com and Galapagos shares on 101 occasions between 2020 and 2024 due to a flawed calculation methodology. The regulator deemed the systematic underreporting serious as it distorted market transparency and hindered supervisory oversight, though it applied a 30% reduction for Arrowstreet's voluntary self-disclosure, full cooperation, and implementation of corrective internal controls. Following a simplified settlement procedure, the final penalty was further reduced by 15% from €350,000 to €297,000, with Arrowstreet acknowledging the infringements and waiving its right to appeal.