In 2024, Macquarie Bank was ordered to pay $4.995 million after it allowed dozens of allegedly manipulative electricity futures trades by several clients including Delta Energy, which owns the Vales Point power station in New South Wales. These trades were handled through the ASX 24 derivatives market and were flagged by authorities as potentially distorting prices, leading to a broader legal investigation.
The case dates back to trades made between September and October 2022, when Delta allegedly placed 30 questionable transactions aimed at influencing electricity futures prices. Controlling around 4% of power generation in the National Electricity Market, Delta had direct access to ASX 24 through Macquarie. The Australian Securities and Investments Commission (ASIC) stated that the bank did not stop orders that may have misled the market, despite having received earlier warnings.
Macquarie is the largest participant in Australia’s energy derivatives market, giving it a critical role in market oversight. The Markets Disciplinary Panel, appointed to review ASIC’s concerns, found that systemic monitoring shortcomings allowed approximately 50 suspect orders from three clients to go unchecked. Although Delta’s trades contributed to the violation, the identities of the other clients have not been revealed.
Wider implications may follow as ASIC separately takes legal action against Delta. Authorities claim the company’s former executives attempted to manipulate futures trades to inflate settlement prices paid by Shell under a long-term power agreement. Delta’s current owners have denied any involvement, but the case highlights the way energy pricing can be influenced by activity at the close of trading.
