AFM Market Watch

The AFM Market Watch is a newsletter that covers current capital market topics in an in-depth way. The AFM Market Watch newsletter covers capital markets related topics such as MAR, MiFID II and transaction reporting. With the AFM Market Watch we will express observations and findings on current, capital market related developments by using data analyses.
We will publish our newsletter on a regular basis. Would you like to have the AFM Market Watch automatically send to your inbox? Subscribe to our newsletters and check the box ‘Kapitaalmarkten’.

Edition 8 - Algorithmic trading

The absolute majority of trades on Dutch capital markets are traded algorithmically. The algorithmic trading universe is vast, divers, complex, and in constant development, and the AFM has made the supervision of algorithmic trading a key area of attention. In the last years, we have looked at the topic of algorithmic trading from different perspectives as algorithms. In this Market Watch we discuss several distinct aspects of algorithmic trading like the underlying terminology, key insights on Dutch capital markets, and potential benefits and risks.

Edition 7 - Benchmarks

Benchmarks are critical to the efficient functioning of financial markets and can be used in various ways. To price financial products, for instance, to serve as reference rates for fund managers, or to increase price transparency for investors. In the 7th edition of our AFM Market Watch, we aim to increase knowledge about the relevance of benchmarks for the financial markets and AFM’s supervisory role vis-à-vis benchmarks.

Edition 6 – Short selling: quantifying the effects of a ban

To ensure effective supervision, it is important for regulators to measure and evaluate the impact of regulatory actions. Together with the Autorité des Marchés Financiers, the AFM has conducted a joint study on the effects of the short selling ban from 17 March 2020 until 18 May 2020 imposed in France. In this issue of the Market Watch the AFM discusses the outcome of the study and the key takeaways for future supervision.

Edition 5 - An overview of the Dutch SPAC market

Last year the Netherlands was the leading jurisdiction by number of Special Purpose Acquisition Companies in Europe. Sixteen SPACs were listed on Euronext Amsterdam in 2021 alone. Although SPACs have certain benefits, the AFM is concerned about the protection of investors. The AFM regards investing in SPACs as complex and it has substantial risks. The AFM thinks SPACs are suitable for only a (very) limited group of retail investors. In this AFM Market Watch, we provide an overview of the Dutch SPAC market, including its risks and how they are supervised by the AFM.

Edition 4 - Prevention and detection of market abuse

The AFM and market participants have a common interest to keep markets trustworthy and free from market abuse. Preventing and detecting market manipulation and insider trading helps to achieve this goal. This fourth edition of the AFM Market Watch provides detailed information on the detection of potential market abuse and the reporting of STORs.

Edition 3 - Investing and social media in light of GameStop

Dynamics on social media can lead to significant price fluctuations of financial instruments. This was apparent in the GameStop hype, for example. Are you allowed to just give tips via social media? And what is your own responsibility as an investor? In the third edition of the AFM Market Watch, we look at the risks of investment decisions made under the influence of social media, and what questions you should ask yourself before making an investment. We also discuss the rules for investment recommendations and for the dissemination of information that messages, including on social media, must comply with.

Edition 2 - Market manipulation

One out of every six Dutch citizens makes private investments. They must be able to rely on the proper operation of the market in which they conduct their transactions. Market abuse damages that trust. In the second edition of AFM Market Watch, we address a specific aspect of market abuse: market manipulation.

Edition 1 - Short selling during COVID-19

The COVID-19 related turmoil has fuelled new discussion around the practice of short selling. In this first edition of our AFM Market Watch, we share our data-based observations how the AFM dealt with short selling in the Dutch financial markets during COVID-19.