Societe Generale Securities Australia (SocGen) has been fined A$3.88 million by the Market Disciplinary Panel (MDP) after failing to prevent suspicious trades on the ASX 24 electricity and wheat futures markets.
SocGen Australia Fined A$3.88m Over Market Gatekeeper Failures
The penalty follows an investigation by the Australian Securities and Investments Commission (ASIC), which found SocGen breached market integrity rules by allowing two clients to place 33 suspicious orders between May 2023 and February 2024.
ASIC said each order bore signs of an attempt to “mark the close”, where trades are placed just before market close to influence the daily settlement price.
The regulator noted this conduct occurred during a period of heightened volatility in global energy and wheat markets, fuelled by supply disruptions linked to the Russia-Ukraine war.
ASIC Chair Joe Longo said: “This is about integrity and confidence in our markets that can have real world impacts on electricity and wheat prices.”
Despite repeated warnings from ASIC, SocGen is said to have failed to take timely action.
The MDP described the bank as reckless and criticised the effectiveness of its compliance and surveillance systems, citing insufficient training, oversight and monitoring capabilities.
SocGen, the second-largest participant on the ASX 24 market, did not contest the breaches and has paid the fine. The company is a subsidiary of France’s Societe Generale S.A., the world’s 19th-largest bank by assets.
The action marks ASIC’s fifth enforcement in 15 months targeting manipulation in the electricity and wheat futures markets, as the regulator continues to prioritise misconduct in energy and commodity derivatives.
