Macquarie Slapped with Record $5M Fine for Market Manipulation Oversight

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The Australian Securities and Investments Commission's Markets Disciplinary Panel (MDP) levied a nearly $5 million fine, the highest in the MDP's history, on Macquarie for enabling questionable orders in the electricity futures market during highly volatile periods in 2022.

According to the watchdog, from January to September 2022, Macquarie allowed three clients to place suspicious orders 50 different times. These actions took place in the final trading minutes of each day, benefiting the clients' positions by manipulating settlement prices.

The MDP contended that Macquarie lacked adequate internal controls and surveillance mechanisms to detect and prevent these orders from creating a misleading impression in the market, an issue exacerbated in a post-Ukraine invasion energy landscape.

Joe Longo, ASIC's chair, criticized Macquarie’s conduct, emphasizing how critical it is for key market players to maintain stringent oversight. "Given Macquarie's pivotal role in the energy derivatives market, it has a fundamental duty to prevent suspicious activities," Longo stated.

Despite multiple warnings and six direct communications from ASIC highlighting evident risks, Macquarie failed to act in a timely manner, thereby allowing continued suspicious activity. The violations are particularly concerning given the chaos in global energy markets following Russia’s 2022 aggression against Ukraine.

Reacting to the fine, Macquarie acknowledged its deficiencies. "This situation arose from electronic trades in the electricity futures market by three commercial clients," a spokesperson for the bank admitted. "As the largest facilitator in this space across Australia and New Zealand, we bear significant responsibility."

The bank also mentioned taking immediate remedial actions and is committed to further improvements to its surveillance and monitoring capabilities. "We've introduced measures to escalate and effectively manage suspicious orders going forward," the statement concluded.

This development highlights regulators' increased vigilance and higher expectations for market participants, especially in volatile times and sectors crucial to national interests like energy.

Notably, the original article that elaborated on these infractions appeared under Nathan Schmidt on September 25, 2024.

Published:Monday, 30th Sep 2024
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Finance News

Clear

Why SME Borrowers Still Need to Shop Carefully for Finance

09 Sep 2026: Paige Estritori

The latest Reserve Bank lending-rate data gives Australian small business owners another reason to look beyond the first offer on the table. While business credit has continued to expand through 2026, the price paid by smaller borrowers remains highly dependent on loan structure, security, trading history and lender appetite. - read more

Business Credit Is Still Moving Despite Rate Pressure

02 Sep 2026: Paige Estritori

The Reserve Bank’s latest financial aggregates add another chapter to the borrowing story that has been building through 2026. The July update indicates that private sector credit is still expanding, with business lending remaining an important source of momentum. For SMEs, sole traders and self-employed borrowers, this extends the pattern seen in the earlier June credit data: demand for funding has not disappeared, even while interest rates and lender scrutiny continue to shape approval outcomes. - read more

RBA Minutes Signal a Longer Wait for Easier Borrowing Conditions

26 Aug 2026: Paige Estritori

The Reserve Bank’s latest meeting minutes have added more detail to the message borrowers heard after the earlier August rate decision: policy makers are not yet ready to declare victory over inflation, even if some parts of the economy are clearly slowing. For households, sole traders and SMEs, that means borrowing plans still need to be built around current lending conditions rather than expectations of a quick fall in rates. - read more

What the August RBA Decision Means for Borrowers

19 Aug 2026: Paige Estritori

The Reserve Bank of Australia’s August decision to leave the cash rate unchanged at 4.35% keeps a familiar message in place for Australian borrowers: relief may come eventually, but loan decisions still need to be made on today’s numbers. For households, sole traders and SMEs, the practical issue is not only where rates sit now, but how lenders assess affordability while policy remains restrictive. - read more

Why June Credit Trends Matter for Business Borrowers

12 Aug 2026: Paige Estritori

The latest Reserve Bank financial aggregates extend a pattern that has been building for several months: Australian businesses are still leaning on credit, even while borrowing costs remain elevated and lenders continue to scrutinise applications closely. Private sector credit continued to grow over the month and across the year, with business lending again a key contributor to overall momentum. - read more

Click for more Finance News