Australia’s corporate regulator is taking legal action against Delta Power & Energy (Vales Point) Pty Ltd, alleging manipulation of the electricity futures market and related financial benchmarks.
ASIC Sues Delta Power & Energy: Alleges Futures Market and Financial Benchmark Manipulation
In civil penalty proceedings filed in the Federal Court, the Australian Securities and Investments Commission (ASIC) claims that Delta (formerly named Sunset Power International Pty Ltd) placed orders for New South Wales Peak Load Electricity Futures Contracts on 30 occasions between 8 September and 6 October 2022 with the intent of improperly influencing the daily settlement price on the ASX 24.
According to ASIC, the orders were designed to create a misleading appearance of genuine market activity and affect pricing benchmarks.
The regulator alleges the conduct aimed to “influence the level at which the daily settlement price of the quarterly futures contracts, which ASIC alleges is a financial benchmark, was generated or administered.”
ASIC Chair Joe Longo said such manipulation poses serious risks.
“The consequences of manipulating energy markets, especially in times of market stress and volatility, can flow through to the real economy, for example, as higher supplier funding costs, and in turn, energy prices,” he said.
Longo added that misconduct in energy and commodity derivatives markets has been a priority for ASIC.
The regulator is seeking declarations and pecuniary penalties against Delta. A date for the case management hearing is yet to be set by the Court.
