News 05/03/26

AFM Market Watch: transparency around pre-close calls remains necessary

Pre-close calls are conversations between listed companies and investors or analysts. They usually take place just before the quiet period. During that period, companies do not conduct discussions with stakeholders prior to the publication of their financial results. The AFM Market Watch 14 describes how these discussions are used in practice, what effects may occur and the points of attention for companies involved. We emphasise the importance of transparency around pre-close calls, specifically following the good practices drawn up by the European regulator ESMA.

In short

• About one in three companies holds pre-close calls
• ESMA good practices known, but their application differs
• Pre-close calls have a noticeable impact on trading volume and volatility
• Market dynamics around pre-close calls require prudence

About one in three companies holds pre-close calls

The AFM conducted a survey among the 85 largest Dutch listed companies, in which a third of the 49 respondents (16 companies) indicated that they hold pre-close calls. The responses showed that the main purpose of the pre-close call is to maintain contact with the analysts who follow the company and to ensure that all recent, externally shared information has been properly received.

ESMA good practices known, application differs

The European regulator ESMA released a statement in 2024 with good practices around pre-close calls. All companies that completed the survey indicate that they are familiar with the guidelines, and 27% of respondents have adjusted their policy as a result. The recommendation to carry out a thorough assessment of the information to be shared in advance is widely applied: all companies surveyed indicate that they do so. At the same time, only 31% publish the agenda for the pre-close call in advance.

Pre-close calls have a noticeable impact on trading volume and volatility

In addition to the survey among the institutions, we analysed the market behaviour around 104 pre-close calls between 2023 and 2025. On the day of a call, trading volume is on average 13% higher and volatility is 12% higher than on comparable days without a call. Although this effect is much smaller than, for example, when publishing quarterly figures, it shows that pre-close calls are not neutral events and are associated with somewhat increased market activity.

Market dynamics around pre-close calls require prudence

Higher trading volume or more volatility around pre-close calls does not automatically indicate market abuse but may be related to how the market processes information. As with any contact between a public company and investors or analysts, concerns about information asymmetry can arise and there is a risk of unintentional sharing of inside information. We therefore emphasise the importance of ESMA good practices and compliance with the Market Abuse Regulation.