Record Fine for Macquarie Bank in Energy Market Breach

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 (ASIC) handed down a historic $4.995 million fine to Macquarie's Markets Disciplinary Panel on Wednesday, the largest in ASIC's history. The penalty emerged after the panel found Macquarie repeatedly allowed suspicious trading activity by three clients between January and September 2022.

ASIC expressed concerns that these dubious orders, placed in the final minute before market close, appeared intended to manipulate the daily settlement price to benefit the clients' existing contracts. Despite repeated flags, Macquarie allegedly did not act to preemptively mitigate these risks, failing its role as a market overseer.

Joe Lungo, the chair of ASIC, noted, "The substantial penalty underscores the significant and potentially systemic shortcomings by Macquarie in dealing with these suspected manipulations within the energy derivatives landscape." According to Lungo, Macquarie's stature as the largest energy derivatives participant necessitates encoding stringent surveillance measures to curb such suspicious trades.

Despite prior warnings, Macquarie’s surveillance measures proved insufficient to address these issues efficiently. This repeated inability to monitor and manage the pertinent concerns ultimately culminated in the hefty fine.

Lungo further remarked on the broader implications of market manipulations, explaining how these could potentially hike supplier funding costs, cascading down as augmented electricity charges for end consumers already grappling with rising living expenses.

The problematic period coincided with an era of immense volatility in global energy markets, partly due to geopolitical tensions like Russia's actions in Ukraine. On six different occasions, ASIC had addressed the potentially damaging impacts of the orders raised within this volatile context to Macquarie, yet no significant alterations ensued.

"The Markets Disciplinary Panel noted that Macquarie's reluctance to proactively manage ASIC's concerns, especially given the turbulent state of global energy markets, worsened the oversight failures," remarked the regulatory body. "Moreover, it assessed that Macquarie underappreciated the necessity of its duties as a market participant, failing to expedite appropriate actions to manage evident surveillance deficiencies," ASIC concluded.

This record-breaking penalty isn't just a simple reprimand but serves as an imperative reminder for other financial institutions about the importance and accountability in market oversight, especially during periods of heightened volatility.

Published:Friday, 27th 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

Mortgage Arrears Put Household Budgets Back in Focus

16 Sep 2026: Paige Estritori

Australia’s mortgage market is still showing resilience, but the latest banking indicators point to a household sector that has less room for error than it did during the ultra-low-rate years. APRA’s recent lending and asset quality data suggests that arrears remain an important signal to watch, particularly as higher repayment commitments continue to work through household budgets. - read more

Rising Loan Sizes Put Fresh Focus on Borrower Budgets

09 Sep 2026: Paige Estritori

Australian home buyers are facing a familiar but important shift: even when interest rates appear steadier, larger property prices can still push borrowing plans back under pressure. Recent housing finance and property market reporting points to buyers taking on bigger loan commitments as values strengthen across parts of the country, particularly in markets where supply remains tight and competition for quality homes is still firm. - read more

Low-Deposit Pathways Put First Buyers Back in Play

02 Sep 2026: Paige Estritori

First-home buyers are getting a fresh reason to revisit their purchase plans, with recent housing finance commentary pointing to stronger interest in low-deposit purchases under the expanded federal Home Guarantee Scheme. The broader settings are designed to help eligible buyers enter the market with a smaller deposit and without paying lenders mortgage insurance, which can otherwise add a substantial cost to buying with less than a standard deposit. - read more

Property Momentum Puts Borrowing Plans Back Under Pressure

26 Aug 2026: Paige Estritori

Australia's housing market is showing renewed signs of momentum, and that matters for anyone preparing to buy or upgrade. Recent property market reporting suggests values are firming across several capitals after a patchier period, with buyer demand, limited listings and expectations around future interest rates all playing a role. For households who were hoping that earlier winter softness would create more room to negotiate, the latest shift is a reminder that affordability can change quickly. - read more

Another Rate Hold Gives Borrowers Time to Reassess

19 Aug 2026: Paige Estritori

Australia’s mortgage market has moved into another watch-and-wait phase after the Reserve Bank of Australia kept the cash rate unchanged at its latest meeting. For borrowers, the decision offers a welcome period of stability, but it should not be mistaken for a signal that home loan costs are now locked in place. - read more

Click for more Finance News