Macquarie Pays $300,000 After MDP Found Systems Weakness
Macquarie Securities Limited has paid AUS$300,000 after the Australian Markets Disciplinary Panel (MDP) found it to have contravened market integrity rules.
The MDP found Macquarie to have transmitted around 42m orders which had either failed to include, or incorrectly stated, regulatory data. The orders, which were made to the Australian Securities Exchange (ASX) and Chi-X, took place over a four year period between July 2014 and July 2018. It submitted around 377,000 deficient trade reports over the same period.
While the MDP agreed that Macquarie had not intended to provide incorrect information, it found it to have weaknesses in its systems and controls, especially those concerning the on-boarding of new clients and its control framework. As such, it had been negligent in its design and implementation of updates to key systems.
In its findings, the MDP highlighted the importance of providing accurate regulatory data in order to ensure market transparency. The fine comes hot on the heels of an announcement by the Australian Securities and Investments Commission (ASIC) that it is cautiously embracing AI solutions, and encourages firms to do the same.