Wed Sep 25 04:11:17 UTC 2024: ## Macquarie Fined $4.99 Million for Failing to Prevent Client Manipulation of Energy Markets

**Sydney, Australia -** The Australian Securities and Investments Commission (ASIC) has fined Macquarie Group Ltd (ASX: MQG) $4.99 million for failing to prevent its clients from manipulating energy markets through on-market trades. The trades took place from January to September 2022, during a period of surging global energy prices due to the Russian invasion of Ukraine.

ASIC found that Macquarie allowed three clients to place suspicious orders on 50 occasions, exhibiting characteristics of “mark the close” tactics, impacting the daily settlement price in a direction beneficial to the client’s existing interests. This manipulation occurred due to a technical failure in Macquarie’s surveillance system, which shut down early, allowing trades to go through after monitoring had ceased.

Despite receiving six warnings from ASIC, Macquarie allowed over 40 such trades to proceed. ASIC Chair Joe Longo emphasized that this type of manipulation could have a downstream impact on energy prices.

“Macquarie plays a large role in Australia’s energy derivatives market,” said Longo. “The bank must ensure suspicious orders are not permitted to be placed on our markets.”

While the fine is a record for its type, it is unlikely to significantly impact Macquarie’s financial performance. The bank remains financially strong and is expected to receive significant performance fees from its recent $24 billion sale of data centre giant AirTrunk.

Despite the setback, analysts remain optimistic about Macquarie shares. The stock is rated a moderate buy from consensus, according to CommSec.

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