Macquarie admits short selling misconduct
19 December 2025 Australia
Image: Christian B./stock.adobe.com
Macquarie 网爆吃瓜 (Australia) Limited (MSAL) has admitted to misleading conduct regarding the misreporting of millions of short sales over several years, caused by repeated failures in its systems and processes.
ASIC and MSAL will ask the New South Wales Supreme Court to impose a penalty of AU$35 million (US$23 million) and to make other orders against MSAL.
The penalty and orders are subject to consideration and approval by the Court.
In a statement of agreed facts filed with the Court, MSAL has admitted it failed to correctly report at least 73 million short sales between 11 December 2009 and 14 February 2024, with it being estimated that MSAL misreported between 298 million and 1.5 billion short sales.
The inaccurate reporting was due to multiple systems-related failures, many of which remained undetected for more than a decade.
MSAL has also admitted it failed to have appropriate supervisory policies and procedures, have and maintain the necessary organisational and technical resources, and have adequate risk management systems to ensure compliance with its short sale reporting obligations.
The firm also admitted to incorrectly reporting regulatory data for more than 633,000 orders submitted to the market operator between 16 November 2022 and 21 March 2023.
Joe Longo, ASIC Chair, states: 鈥淎ccurate and reliable data underpins confidence in our financial markets. ASIC and the market rely on short sale and regulatory reporting data - especially during periods of volatility - to understand market activity and make informed decisions.
鈥淲ithout accurate data, market transparency is undermined. Market participants must have the proper systems and processes in place to comply with their regulatory obligations.
鈥淚t鈥檚 essential for public transparency, market integrity and trust in our system.鈥�
ASIC and MSAL will ask the New South Wales Supreme Court to impose a penalty of AU$35 million (US$23 million) and to make other orders against MSAL.
The penalty and orders are subject to consideration and approval by the Court.
In a statement of agreed facts filed with the Court, MSAL has admitted it failed to correctly report at least 73 million short sales between 11 December 2009 and 14 February 2024, with it being estimated that MSAL misreported between 298 million and 1.5 billion short sales.
The inaccurate reporting was due to multiple systems-related failures, many of which remained undetected for more than a decade.
MSAL has also admitted it failed to have appropriate supervisory policies and procedures, have and maintain the necessary organisational and technical resources, and have adequate risk management systems to ensure compliance with its short sale reporting obligations.
The firm also admitted to incorrectly reporting regulatory data for more than 633,000 orders submitted to the market operator between 16 November 2022 and 21 March 2023.
Joe Longo, ASIC Chair, states: 鈥淎ccurate and reliable data underpins confidence in our financial markets. ASIC and the market rely on short sale and regulatory reporting data - especially during periods of volatility - to understand market activity and make informed decisions.
鈥淲ithout accurate data, market transparency is undermined. Market participants must have the proper systems and processes in place to comply with their regulatory obligations.
鈥淚t鈥檚 essential for public transparency, market integrity and trust in our system.鈥�
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