Macquarie Securities fined for hiding millions of short sales over 14 years
The New South Wales Supreme Court has fined Macquarie Securities Australia Limited (MSAL) for misreporting tens of millions of short sales over a 14-year period. Between December 2009 and February 2024, the firm failed to accurately disclose trading data, leading to regulatory action by the Australian Securities and Investments Commission (ASIC).
ASIC found that MSAL engaged in misleading or deceptive conduct by incorrectly reporting at least 73 million short sales. The regulator suggested the true figure could be far higher—potentially between 298 million and 1.5 billion transactions. The court identified nine specific issues, including the use of 'dummy fills' and flawed data extraction methods.
MSAL did not contest the judgement, and Justice Nixon acknowledged the firm's cooperation during the investigation. As part of the penalty, MSAL must now hire an independent expert to review its compliance systems and reporting processes. The case highlights the importance of accurate short sale data, which ASIC described as essential for regulators and investors to assess market risks. Despite the fine, Macquarie Group's broader financial performance remained strong, with net interest and trading income reaching AUD $4.5 billion in the six months to September 2025—a 9.3% increase from the previous year.
The court's decision imposes a financial penalty and mandatory system review on MSAL. The ruling aims to ensure stricter adherence to reporting rules in future. The case serves as a reminder of the regulatory focus on transparency in financial markets.
