Macquarie Slapped with Record $5M Fine for Market Manipulation Oversight
Macquarie Slapped with Record $5M Fine for Market Manipulation Oversight
8
Macquarie Bank, a cornerstone in Australia's financial sector, has been hit with a groundbreaking penalty for its lapses in supervising potentially market-manipulating activities.
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.
Peter Stevens Motorcycles, a cornerstone of Australia's motorcycle retail industry since 1970, has entered voluntary administration, revealing debts exceeding $65 million. This development casts uncertainty over the future of the company's 400 employees and its extensive customer base. - read more
Harley-Davidson is reportedly in discussions to sell a stake in its financing unit, Harley-Davidson Financial Services (HDFS), to investment firms Pacific Investment Management Co (PIMCO) and KKR & Co. The proposed deal, valued at approximately $5 billion, includes the sale of existing motorcycle loan portfolios. - read more
Westpac has announced a promotional offer for individuals seeking to finance their motorcycle purchases. Until 30 October 2025, the bank is waiving the $250 establishment fee on its unsecured personal loans for motorcycles. This initiative aims to make motorbike ownership more accessible and affordable for Australians. - read more
National Finance and Loans (NFAL) has entered into a multi-year partnership with Honda Racing Australia, marking a significant collaboration in the Australian motorcycle racing scene. This alliance was unveiled at the final round of the Australian Supercross Championship, where NFAL assumed title rights for rider Alex Larwood's #5 entry. - read more
Motorcycle loans have become an essential financial tool for many Australians looking to hit the open road on two wheels. With a growing popularity of motorcycles, understanding the ins and outs of financing these vehicles is crucial. In Australia, there are various loan options available, each tailored to different needs and circumstances. - read more
Financing a motorcycle in Australia can be a helpful option for individuals who want to own their own bike but may not have the immediate funds to do so. Motorcycle financing allows you to spread out the cost of the purchase over a period of time, making it more affordable and manageable. - read more
Welcome to the exhilarating world of motorcycle riding. Whether you're a seasoned rider or just getting started, there's something uniquely thrilling about hitting the open road on two wheels. - read more
Feeling the wind rushing past you as you glide down the open road, with the growl of the engine as your soundtrack – the thrill of motorcycle ownership is a unique blend of freedom, excitement, and passion. In Australia, where the vistas are as captivating as the sense of adventure, owning a motorcycle is not just about transportation; it's a way to experience the landscape to its fullest. - read more
Start Here
Knowledgebase
Prime Rate: The interest rate that commercial banks charge their most creditworthy customers.
