We are a proud member of the Financial Services Online network!
Connect with us on your favourite social media platform for the latest financial news, views, tips, tricks, resources and 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
Source: Paige Estritori
| RBA Insights: The Dynamics Behind Rate Decisions 06 Oct 2024: Paige Estritori The Reserve Bank of Australia (RBA) is set to release its September board meeting minutes, which promise to explain the rationale behind the decision to maintain interest rates at their current level. Market watchers are keenly awaiting any indications of future rate changes. - read more |
| ANZ Settles $85 Million Dispute in Car Loan Commission Case 06 Oct 2024: Paige Estritori A significant settlement has been reached by financial powerhouse ANZ, totaling $85 million, concerning practices in its former car financing division. The settlement puts an end to allegations surrounding ANZ's controversial loan commission strategy, which purportedly exploited consumers purchasing vehicles. - read more |
| Major Australian Banks to Compensate Millions Over Unjust Fees 04 Oct 2024: Paige Estritori In an unexpected windfall for numerous Australians, several leading banks are set to return millions of dollars after imposing unjust fees on their customers. This comes in response to an investigative report conducted by the Australian Securities and Investments Commission (ASIC). - read more |
| Strain on Aussie Borrowers: A Deeper Dive 03 Oct 2024: Paige Estritori In Australia, financial pressures are mounting for many households. According to the latest Financial Stability Review (FSR) from the Reserve Bank of Australia (RBA), approximately one-in-20 Australian borrowers are facing negative cash flow situations. - read more |
| ANZ Ups Ante for Savers with New Balance Condition 03 Oct 2024: Paige Estritori In a move that has left many Australians reevaluating their savings strategies, ANZ, one of the nation's largest banks, has significantly altered the interest rates on its savings accounts. The bank has introduced a stipulation that demands customers grow their balance by at least $100 each month to avoid a drastic reduction in interest rates. - read more |
| Your Car Loan Journey: From Application to Approval In this article, we are embarking on a guided journey that we believe will help immensely in navigating the intricacies of the car loan process. - read more
|
| Top Tips for Australians Navigating the Online Car Market The Australian automotive landscape has witnessed a significant transformation with the rise of online car sales. The concept of browsing, selecting, and purchasing a vehicle through digital platforms has gained immense popularity, offering consumers a vast array of choices at their fingertips. - read more
|
| From Fuel to Finance: A Comprehensive Breakdown of Car Costs When it comes to owning a car in Australia, many of us view it as a symbol of freedom, an essential convenience, or even a reflection of our personal style. Yet, for all the road trips planned and errands run, the cost of owning a car extends well beyond the sticker price. - read more
|
| Understanding Car Loan Refinancing in Australia: When Is It the Right Move? Car loan refinancing involves replacing an existing car loan with a new one, usually to lower the interest rate, reduce monthly payments, or modify the loan term. In Australia's fluctuating economic landscape, refinancing can be a strategic financial decision for borrowers looking to adjust their finances to more favorable terms. - read more
|
| The Smart Aussie Buyer's Guide to Securing the Best Price on a New Car There's a unique thrill that comes with purchasing a new car; it's not just about getting from point A to B, but about fulfilling a dream and the freedom of the open road. However, with the excitement comes the need for careful planning and smart decision-making to ensure that your investment pays off in the long term. - read more
|
|
The Complete Checklist for Choosing a Car Loan Provider in Australia Finding the right car loan in Australia can be just as critical as selecting the car itself. Car finance, though a common undertaking, involves nuanced decisions that can have a significant impact on your financial future. - read more
|
|
Car Loans: Secured vs Unsecured Car loans play a pivotal role in empowering individuals to afford their own vehicle, which can be a significant purchase. These loans, structured to fit within one's financial situation, can ease the burden of acquiring a car and assist in achieving personal convenience and mobility. - read more
|
|
|
Your Car Loan Journey: From Application to Approval In this article, we are embarking on a guided journey that we believe will help immensely in navigating the intricacies of the car loan process. - read more
|
|
|
Understanding Car Loan Refinancing in Australia: When Is It the Right Move? Car loan refinancing involves replacing an existing car loan with a new one, usually to lower the interest rate, reduce monthly payments, or modify the loan term. In Australia's fluctuating economic landscape, refinancing can be a strategic financial decision for borrowers looking to adjust their finances to more favorable terms. - read more
|
|
Pre-purchase Checklist for Auto Buyers: Ensuring Financial Readiness Buying a car is an exciting milestone, but it's crucial to approach the process with a clear financial plan in place. Before you get swept away by the shiny showroom models or the thrill of a test drive, understanding the financial implications of purchasing a vehicle can save you from future stress and unwanted debt. Preparing before applying for a car loan is not just recommended; it's a necessary step that directly influences loan terms and your chances of approval. - read more
|