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Read between the lines, the grubberment want their fingers in the pie.
MQG - Macquarie Group
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Just put a solidarity tax pr some other bull****, people saying the alp and lnp are the same..yes both very bad, but alp government in the last 3 years has been absolutely abysmal , a record yet the populace is blissfully unaware
Dona Ferentes
Did the Thessalonians write back?
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the usual pile on ^^^^^
Through January and February 2022 a single trading customer used a broker to place four futures orders with Macquarie, all of which were pegged seven-to-14 seconds before the market close.
The timing of the orders was odd. But it was the timing coupled with their impact on the daily settlement price that should have raised an alarm at Macquarie. Instead, the irregularity of the orders went undetected.
The orders in question reflected various electricity futures contracts, which are essentially a bet on future price movements in that part of the energy market.
At the time, Macquarie was a dominant force serving as the largest player in ASX electricity futures and accounting for about 58 per cent of all orders. This was also a period of extremely heightened geopolitical risk after Russia invaded Ukraine, leading to volatility in energy markets, which in turn had immense knock-on effects through Australia’s domestic economy.
That put the integrity of commodities and energy markets high on the list of priorities for the Australian Securities and Investments Commission.
While the aforementioned 2022 orders for electricity futures contracts and another with similar characteristics hadn’t raised the alarm at Macquarie, the corporate regulator’s interest was piqued late that February. Were these trades attempts to manipulate the market rather than genuine trading? Was Macquarie adequately on top of what was going on?
ASIC in mid-March demanded answers and served Macquarie with notices to provide documents and information.
Surely, communication from ASIC of this nature would warrant serious attention at Macquarie?
It did initially. Macquarie employees dispatched customer communication and other documentation to the regulator, and also reported that their trade surveillance system was not generating the right alerts.
But while Macquarie – long known among investors for its prudent risk management – was somewhat complying with ASIC’s requests and following up with its technology provider Nasdaq over the alerts, the suspicious trades kept coming thick and fast.
By late September 2022, three Macquarie customers had placed 51 orders for various electricity contracts – all within the last minute of a day’s trading.
During that period ASIC had been in touch multiple times to urge Macquarie’s compliance team to get across the issues. In June 2022, the regulator raised further concerns with Macquarie about the trading activity around the daily futures market close, and also requested the group tell its customers to be mindful of their trading obligations.
What happened – or didn’t happen at Macquarie – during the first nine months of 2022 paints a clear picture of how the group’s employees dropped the ball on multiple occasions. They failed to adequately manage risk and comply with their regulatory obligations, allowing the suspicious trading to continue to occur unabated.
ASIC this week slapped licence conditions on Macquarie relating to the futures dealing business and its over-the-counter derivatives arm, with nine market conduct matters identified in the past 18 months.
It was yet another blow to Macquarie on the regulatory front and came just seven months after ASIC’s markets disciplinary panel fined Macquarie almost $5 million for failing to stop the suspicious orders being placed on the electricity futures market.
This week, ASIC highlighted Macquarie’s lax supervision, poor change management practices and an “incomplete understanding” of its own processes and controls, including data governance.
The licence conditions force Macquarie to prepare a remediation plan to address the failures and their causes, alongside appointing an independent expert to review and report on the adequacy of that plan and its operation. A Macquarie executive – deemed an accountable person under the Financial Accountability Regime – will need to oversee the project.
ASIC’s statement this week identified the recurrent nature of Macquarie’s failures, including that it didn’t prevent 11 “suspicious orders” being placed on the electricity futures market just after the regulator referred the earlier and similar 2022 failures to the Markets Disciplinary Panel. The latter is a peer review and enforcement body set up by ASIC.
In the over-the-counter derivatives market, ASIC highlighted the misreporting of more than 375,000 transactions. Some of the derivatives trade reporting failings even dated back about a decade to when new transaction reporting rules came into effect in late 2014.
Macquarie’s failings follow those of other large investment banks including JPMorgan, which last year paid an almost $US350 million fine to settle US regulatory claims it failed to adequately report trading data to surveillance systems.
On Friday, Macquarie chairman Glenn Stevens lamented Macquarie’s compliance failings but said the board and management were focused on rectifying them.
“There are serious obligations in terms of reporting, market integrity and so on, and Macquarie wasn’t good enough here,” he said. “When that happens you have to own that, get it fixed ...we will fix it.”
Stevens outlined that the Macquarie board was alert to the issues and had sought accountability from the executive team on pay outcomes over the licence conditions. The board would also seek to incentivise executives with a “very objective test” to improve its risk management outcomes.
Macquarie chief executive Shemara Wikramanayake highlighted an increase in resourcing such as headcount and investment in regulatory compliance that would aid the group in lifting its standards. While spending on regulatory compliance was flat in the 12 months ended March 31 at $1.22 billion, compared to the year before, the outlay has doubled since 2021.
The regulator clearly lost patience, though, with Macquarie’s inability to meet reporting and compliance obligations on several fronts, culminating in this week’s licence conditions.
“This is repeated and systematic [behaviour from Macquarie] and that is an acknowledgement from us that there are comprehensive issues,” Simone Constant, an ASIC commissioner, told AFR Weekend on Friday.
“It does seem to be across various parts of business and various parts of product."
Constant said Macquarie needed to conduct a “read across” of its remediation plan, to ensure these issues were not occurring in other parts of the commodities and global markets unit or the broader company....
www.afr.com
How Macquarie’s trading units came unstuck on risk management
As suspicious trades kept coming thick and fast, the group should have raised the alarm. Instead, it dropped the ball – and ASIC lost patience.Through January and February 2022 a single trading customer used a broker to place four futures orders with Macquarie, all of which were pegged seven-to-14 seconds before the market close.
The timing of the orders was odd. But it was the timing coupled with their impact on the daily settlement price that should have raised an alarm at Macquarie. Instead, the irregularity of the orders went undetected.
The orders in question reflected various electricity futures contracts, which are essentially a bet on future price movements in that part of the energy market.
At the time, Macquarie was a dominant force serving as the largest player in ASX electricity futures and accounting for about 58 per cent of all orders. This was also a period of extremely heightened geopolitical risk after Russia invaded Ukraine, leading to volatility in energy markets, which in turn had immense knock-on effects through Australia’s domestic economy.
That put the integrity of commodities and energy markets high on the list of priorities for the Australian Securities and Investments Commission.
While the aforementioned 2022 orders for electricity futures contracts and another with similar characteristics hadn’t raised the alarm at Macquarie, the corporate regulator’s interest was piqued late that February. Were these trades attempts to manipulate the market rather than genuine trading? Was Macquarie adequately on top of what was going on?
ASIC in mid-March demanded answers and served Macquarie with notices to provide documents and information.
Surely, communication from ASIC of this nature would warrant serious attention at Macquarie?
It did initially. Macquarie employees dispatched customer communication and other documentation to the regulator, and also reported that their trade surveillance system was not generating the right alerts.
But while Macquarie – long known among investors for its prudent risk management – was somewhat complying with ASIC’s requests and following up with its technology provider Nasdaq over the alerts, the suspicious trades kept coming thick and fast.
By late September 2022, three Macquarie customers had placed 51 orders for various electricity contracts – all within the last minute of a day’s trading.
During that period ASIC had been in touch multiple times to urge Macquarie’s compliance team to get across the issues. In June 2022, the regulator raised further concerns with Macquarie about the trading activity around the daily futures market close, and also requested the group tell its customers to be mindful of their trading obligations.
What happened – or didn’t happen at Macquarie – during the first nine months of 2022 paints a clear picture of how the group’s employees dropped the ball on multiple occasions. They failed to adequately manage risk and comply with their regulatory obligations, allowing the suspicious trading to continue to occur unabated.
Broader failures
The shortcomings in 2022 are indicative of the serious and broader compliance failures Macquarie’s commodities and global markets unit now confronts.ASIC this week slapped licence conditions on Macquarie relating to the futures dealing business and its over-the-counter derivatives arm, with nine market conduct matters identified in the past 18 months.
It was yet another blow to Macquarie on the regulatory front and came just seven months after ASIC’s markets disciplinary panel fined Macquarie almost $5 million for failing to stop the suspicious orders being placed on the electricity futures market.
This week, ASIC highlighted Macquarie’s lax supervision, poor change management practices and an “incomplete understanding” of its own processes and controls, including data governance.
The licence conditions force Macquarie to prepare a remediation plan to address the failures and their causes, alongside appointing an independent expert to review and report on the adequacy of that plan and its operation. A Macquarie executive – deemed an accountable person under the Financial Accountability Regime – will need to oversee the project.
ASIC’s statement this week identified the recurrent nature of Macquarie’s failures, including that it didn’t prevent 11 “suspicious orders” being placed on the electricity futures market just after the regulator referred the earlier and similar 2022 failures to the Markets Disciplinary Panel. The latter is a peer review and enforcement body set up by ASIC.
In the over-the-counter derivatives market, ASIC highlighted the misreporting of more than 375,000 transactions. Some of the derivatives trade reporting failings even dated back about a decade to when new transaction reporting rules came into effect in late 2014.
Macquarie’s failings follow those of other large investment banks including JPMorgan, which last year paid an almost $US350 million fine to settle US regulatory claims it failed to adequately report trading data to surveillance systems.
On Friday, Macquarie chairman Glenn Stevens lamented Macquarie’s compliance failings but said the board and management were focused on rectifying them.
“There are serious obligations in terms of reporting, market integrity and so on, and Macquarie wasn’t good enough here,” he said. “When that happens you have to own that, get it fixed ...we will fix it.”
Stevens outlined that the Macquarie board was alert to the issues and had sought accountability from the executive team on pay outcomes over the licence conditions. The board would also seek to incentivise executives with a “very objective test” to improve its risk management outcomes.
‘Repeated and systematic’
“It is disappointing that we’ve had another set of incidents … on the ASIC matters. We do continually ask the question: Do we have the settings right?”Macquarie chief executive Shemara Wikramanayake highlighted an increase in resourcing such as headcount and investment in regulatory compliance that would aid the group in lifting its standards. While spending on regulatory compliance was flat in the 12 months ended March 31 at $1.22 billion, compared to the year before, the outlay has doubled since 2021.
The regulator clearly lost patience, though, with Macquarie’s inability to meet reporting and compliance obligations on several fronts, culminating in this week’s licence conditions.
“This is repeated and systematic [behaviour from Macquarie] and that is an acknowledgement from us that there are comprehensive issues,” Simone Constant, an ASIC commissioner, told AFR Weekend on Friday.
“It does seem to be across various parts of business and various parts of product."
Constant said Macquarie needed to conduct a “read across” of its remediation plan, to ensure these issues were not occurring in other parts of the commodities and global markets unit or the broader company....
How Macquarie’s trading units came unstuck on risk management
As suspicious trades kept coming thick and fast, the group should have raised the alarm. Instead, it dropped the ball – and ASIC lost patience.
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There's always some type of scandal going on with banks, but I think the main issue here was the misreporting of the derivative deals.
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^^^^ we are living in paradise,who needs the world
lets crucify MQG: CBA will save Australia one HL at a time
Disclaimer: I own MQG, i short CBA long term
lets crucify MQG: CBA will save Australia one HL at a time
Disclaimer: I own MQG, i short CBA long term
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liable to lose their hands right up to the elbows if they get involved there , after all it is very hard to control greed ,
remember MQG are used to playing against ( and with ) the biggest in the world
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Market derivatives are the easiest way to manipulate the market without being caught, at the best of times, let alone not being reported. Nothing to do with whether or not I like banks, I've bought and sold bank stocks quite a few times.
Garpal Gumnut
Ross Island Hotel
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I’m unsure whether @peter2 is helping Mick out this month or not so I’ve included him in this post.
@mullokintyre MQG is one of my picks in the yearly comp. Everyone goes on about these jokers and other funds being crooked. I think that is a positive sign unless they are caught and punished. This won’t happen to MQG. Unless you are a muppet like whatsisname who found Buddha among the detritus of Sydney beaches and got a certificate from a dodgy GP.
Anyways MQG is getting fees as its funds flounder and will come up smelling sweet no matter what happens. A chart.
gg
@mullokintyre MQG is one of my picks in the yearly comp. Everyone goes on about these jokers and other funds being crooked. I think that is a positive sign unless they are caught and punished. This won’t happen to MQG. Unless you are a muppet like whatsisname who found Buddha among the detritus of Sydney beaches and got a certificate from a dodgy GP.
Anyways MQG is getting fees as its funds flounder and will come up smelling sweet no matter what happens. A chart.
gg
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@mullokintyre
i hold MQG ( 'free-carried ' )
unlike some OZ banks MQG is a little lower than it's record highs ( unlike some local peers )
which is intriguing since it has clear paths to growth ( unlike most local peers ) albeit by taking higher risks
one risk i can see is franking credits virtually disappearing as more and more income is sourced internationally
| VALUE | Company | Market | Sector |
| Morningstar Earnings Model | 0.27 | 0.64 | 0.33 |
| P/E Ratio | 27.10 | 18.10 | 11.80 |
| P/B Ratio | 2.37 | 1.42 | 1.05 |
| P/E Growth Ratio | 1.14 | 1.13 | 0.63 |
| INCOME | Company | Market | Sector |
| Dividend Yield | 3.0% | 4.0% | 4.0% |
| Franking | 35.0% | -- | -- |
i hold MQG ( 'free-carried ' )
unlike some OZ banks MQG is a little lower than it's record highs ( unlike some local peers )
which is intriguing since it has clear paths to growth ( unlike most local peers ) albeit by taking higher risks
one risk i can see is franking credits virtually disappearing as more and more income is sourced internationally
Last edited:
Dona Ferentes
Did the Thessalonians write back?
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which local peers would that be?
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well CBA , NAB and WBC will have to sweet-talk the ACCC ( like ANZ did ) to make any meaningful acquisitions
MYS and ABA merged because they were small enough not to raise many concerns
that leaves BEN and BOQ as 'fair game ' to either merge or be swallowed buy somebody larger
since the BIG 4 have such a dominant share of the OZ market and some are slimming down the NZ and PNG exposure who will run the tape over BEN or BOQ
now MQG might be tempted to add to their tiny penetration in the retail market , but they seem to be more interested in overseas investments , and then there are all those pesky inquiries the regulators have , would they bother
CBA is supposedly making new records highs rather often
NAB isn't so far of 2006 peaks
despite their Clydesdale Bank adventure ( which i made some profit on after they divested it , Clydesdale that is )
now of course you could argue the inflation factor over the past 20 years ....
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I Doubt Bendigo Bank Will be Taken over, i Don't think the Government would allow it!
BOQ.....Been a Bit of a Disaster over the last few years (Yep made Money, then bought it back at the wrong time & sold losing Money)
I don't think any of the banks would be interested unless they have some secret sauce that the other banks may want!
MQG....Would like to own,but Not in my Buy range at the moment Between 143 &166 i would consider preferably the lower end.
BOQ.....Been a Bit of a Disaster over the last few years (Yep made Money, then bought it back at the wrong time & sold losing Money)
I don't think any of the banks would be interested unless they have some secret sauce that the other banks may want!
MQG....Would like to own,but Not in my Buy range at the moment Between 143 &166 i would consider preferably the lower end.
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there was a narrative several years back to turn ( some of ) the minors into a No. 5
now originally the issue back then was QLD , both SUN and BOQ had heavy exposure in QLD and BEN had it's share of QLD branches too
, add in the old WBB/ABA ( another bank with a concentrated QLD exposure )
now SUN has become an insurance play ( sold the banking to ANZ )
WBB/ABA merged with Tasmanian MYS diffusing that trap
in theory folding BOQ into BEN is possible ( but have no idea how you sell that to customers,franchisees or shareholders ) so might be a nest of problems , before going to the regulator
i bought MQG ( several parcels ) during 2011 going for extra risk/growth instead of 'safety ( but paradoxically only in the banking sector )
as i see it not a secret sauce but a poison pill with many branches owned by franchisees , the franchisees may not be so open to being re-branded even less so with the revolving door board of directors
not a 'disaster ' for me but not a big profit either , and in April 2023 i found a better investment outside to market for that cash
while i can't guarantee that i will never buy back into BOQ , it will need to do something very special to lure me into considering a re-entry
Garpal Gumnut
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@mullokintyre MQG is one of my picks in the yearly comp. It's a solid company and I believe cheap atm. It relies much on it's investing and lending business and thus American business. Many are signalling a top in the NASDAQ. I'm tipping the start of a super cycle and thus growth in MQG.
Today it has broken comprehensively through resistance and although it may temporarily retrace coming up to June 9th and Trump's deadline for Chinese tariffs, I believe it will continue to be bullish for the stock this year.
gg
Today it has broken comprehensively through resistance and although it may temporarily retrace coming up to June 9th and Trump's deadline for Chinese tariffs, I believe it will continue to be bullish for the stock this year.
gg
Dona Ferentes
Did the Thessalonians write back?
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finally, some narrative that makes sense.
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You all know my views on CBA, but i have to concur with GG.
i own MQG and happy to be in such position...
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did you miss
given MQG now offers it's own array of 'managed funds' ETFs i can see these funds + Asia exposure as likely a good thing as China and US start to wrestle for influence in Asia@mullokintyre
Macquarie Group Appoints David Chang as Head of Wealth Distribution in Asia
Macquarie Group Appoints David Chang as Head of Wealth Distribution in Asia - The Bull
Macquarie Group Ltd (ASX: MQG) has announced the appointment of David Chang as the Head of Wealth Distribution in Asia, effective March 2, 2025. The move is part of Macquarie's strategy to strengthen its presence in the Asian market and enhance its distribution capabilities across the region...thebull.com.au
i hold MQG ( 'free-carried ' )
this probably won't move the needle share price-wise
but better exposure to Asia is very much the way i like to tilt my investment bias , currently
i guess time will tell if this is good for me
time will tell if Trump's antics can save America , that is not the way i do business , but then i didn't desire a trophy wife ( or was it two ) nor an iconic building sporting my name in lights
i prefer win/win (/win ) deals sign them , honor them , and move on to another project/deal ( and rinse/repeat )
but the US was going somewhere nasty anyway , maybe Trump can soften the consequences
China created a lot of levers , and understands how to use them , this is no longer the 1900s China learned a lot from then
if MQG can keep close to growth forecasts it will soon suck market share from larger ( and even less reputable ) rivals
Garpal Gumnut
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Thanks @divs4ever . Sorry I did miss your post. There is so much going on with MQG and I've been pressed for time all day. I reckon I could have done an ft.com report on MQG if I had the skills. There is so much opportunity. And I agree with @qldfrog 's feelings as well.
gg
Garpal Gumnut
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MQG suffered a backlash from shareholders with 25% voting against the renumeration report. A repeat with a higher percentage next year will lead to board vacation and a call for new electors. The "millionaires' factory" is really too greedy with other peoples' money. From ft.com the combined pay of the company’s top nine executives reached almost A$100mn and Nick O’Kane, Macquarie’s head of commodities who left last year, took home A$58mn (US$38mn) in 2023, exceeding the pay of JPMorgan chief Jamie Dimon and Citibank head Jane Fraser that year.
This is not good management it is low greed and snouts in troughs. It is piggish behaviour. Nonetheless they are a pick for me @mullokintyre in the 2025 Comp.
MQG pays a 2.88% yearly divie with 35% franked. The price dropped today.
gg
gg
This is not good management it is low greed and snouts in troughs. It is piggish behaviour. Nonetheless they are a pick for me @mullokintyre in the 2025 Comp.
MQG pays a 2.88% yearly divie with 35% franked. The price dropped today.
gg
gg
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@mullokintyre
all the more reason to buy this dirt cheap ( my av. SP is $26,76 )
this is a HIGH risk stock , but also has the potential to reward you for the extra risks taken
and if MQG is kicking cans of crap ( sometimes ) what are rivals like Goldman Sachs doing are they actually doing worse ( than MQG )
new ( potential ) buyers should be aware the franking credits are liable to keep shrinking unless they buy more Australian-sourced income ( say like part of PPT or AMP )
