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 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

What APRA’s 3% Buffer Means for Borrowing Power

23 Jul 2026: Paige Estritori

APRA’s decision to keep the mortgage serviceability buffer at 3 percentage points is a timely reminder that loan approval is still being judged on resilience, not just today’s advertised interest rate. The buffer requires regulated lenders to test whether borrowers could still manage repayments if rates were materially higher than the loan rate being offered. - read more

Why the RBA’s Latest Signals Matter for Your Next Loan

22 Jul 2026: Paige Estritori

The Reserve Bank of Australia’s latest policy commentary has reinforced a message that borrowers cannot afford to ignore: interest rate relief is not something to build a budget around too early. While inflation has eased from its peak, the central bank remains alert to price pressures, wage growth, productivity challenges and the possibility that demand may prove more resilient than expected. - read more

Why Personal Loan Borrowers Need to Look Past the Advertised Rate

21 Jul 2026: Paige Estritori

Australian borrowers comparing personal loans in July are facing a market where the headline rate can tell only part of the story. Canstar’s latest personal loan update, published on 21 July 2026, shows some competitive rates remain available, but the gap between the cheapest and most expensive unsecured offers is still substantial. - read more

Small Businesses Are Still Paying More for Finance

14 Jul 2026: Paige Estritori

The latest Reserve Bank of Australia lending rate data gives small business owners a timely reminder: the cost of finance is still highly dependent on borrower profile, loan size, security and lender appetite. For May 2026, the average rate on new small business loans sat at 7.26% per annum, compared with 6.12% for medium businesses and 5.49% for large businesses. - read more

Click for more Finance News