AFM position concerning measures against short selling

Following consultation at the ESMA level, Italy, France, Spain and Belgium have decided to implement measures against short selling. The European supervisors, including the AFM, made a joint statement in respect thereof.

Currently, the AFM does not see reason to implement further measures against short selling on the Dutch market and has discussed this position within ESMA with other European market supervisors.
Short selling performs a useful role in the formation of prices under normal circumstances. In exceptional circumstances, selling strategies combined with spreading rumours can be considered to be prohibited market manipulation. Based on the available information, the AFM currently does not see reason to implement a prohibition in the Netherlands.

The AFM monitors all developments in the financial markets closely and will continue to do so in the interest of fair and transparent financial markets. Moreover, the regulation that net short positions of more than 0.25 percent have to be notified has been in force since 2009.

The AFM promotes fairness and transparency within financial markets. We are the independent supervisory authority for the savings, lending, investment and insurance markets. The AFM promotes the conscientious provision of financial services to consumers and supervises the honest and efficient operation of the capital markets. Our aim is to improve consumers’ and the business sector’s confidence in the financial markets, both in the Netherlands and abroad. In performing this task the AFM contributes to the prosperity and economic reputation of the Netherlands.

The AFM is committed to promoting fair and transparent financial markets.

As an independent market conduct authority, we contribute to a sustainable financial system and prosperity in the Netherlands.

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