ASIC Launches Landmark Short Sale Case Against Macquarie Securities

Miko Santos

May 14, 2025

Transcript

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The Australian Securities and Investments Commission (ASIC) has initiated its first-ever short sale case against Macquarie Securities, alleging systematic failures in regulatory reporting dating back to December 2009.

ASIC Chair Joe Longo, speaking from Doha, emphasized the market integrity implications of the case: "By not accurately reporting its short sale activity and related regulatory data, it does undermine our confidence that we know what's going on in the market... if we're getting a misleading picture, then that's not good for transparency and market efficiency."

The proceedings filed in the New South Wales Supreme Court claim Macquarie repeatedly failed to rectify reporting issues despite ASIC raising concerns on multiple occasions since 2015. While ASIC is not alleging deliberate misconduct, Longo described the situation as "systemic failures over a long period of time."

This legal action marks the fourth regulatory proceeding against Macquarie in just over 12 months, raising questions about the institution's compliance culture. When asked about potentially revoking Macquarie's financial license, Longo responded: "We're a long way from that. Macquarie are a major institution of the Australian economy. They're a global player. They're capable of dealing with these issues. They simply have not invested enough and taken the appropriate approach."

Market reaction was immediate, with Macquarie's share price declining by more than one percent following the announcement.

Trump Dismisses Ethical Concerns Over $600M Qatari Aircraft Gift

President Donald Trump has rejected criticism regarding his acceptance of a $600 million luxury aircraft gifted by Qatar's royal family, stating the plane will eventually be donated to his presidential library with no intended personal use.

The controversy comes amid Trump's extensive Middle East tour, which has yielded substantial business deals across the region, including weapons sales to Saudi Arabia and semiconductor agreements with the United Arab Emirates.

Dr. Mark Rolfe from the University of New South Wales raised concerns about potential conflicts of interest: "I think the concern is that this plane is a cost of business for the Qatari government, whose sovereign wealth fund, through its real estate arm, is arranging a business deal with Trump organisation for a luxury villa and golf course in Qatar."

Beyond ethical considerations, security experts note that significant modifications would be necessary before any gifted aircraft could serve as Air Force One. The specialized aircraft requires missile defense systems, radiation shielding for nuclear scenarios, medical facilities, and extensive communication equipment.

"It's a very specialised aircraft that should be built from the ground up," Dr. Rolfe explained. "It's sort of back to square one in fitting out this Qatari plane for a new Air Force One. And they're saying that it would be ready by the end of 2027, which would be a miracle, given the current state of things."

When questioned about potential counterintelligence risks, Dr. Rolfe noted that standard security protocols would include the aircraft being "ripped apart" and thoroughly inspected by military personnel and the Secret Service.

Australian Wages Rise 3.4% Amid Historic Public Sector Spending

Newly released Australian Bureau of Statistics data shows wages increased by 3.4% in the year to March, aligning with Reserve Bank expectations ahead of its upcoming interest rate decision.

KPMG Chief Economist Brendan Wrynn provided analysis on the figures: "It shows still a good strength within the Australian labour market. We haven't seen an escape with regards to wages growth back up to what we've seen in the last couple of years. That still seems pretty well contained."

Public sector jobs significantly contributed to wage growth, bolstered by enterprise bargaining agreements structured during the reporting period. Wrynn highlighted unprecedented levels of government expenditure, noting: "The level of public sector spending we're seeing at the moment is higher than the level of public sector spending that Australia spent during World War I. And in fact, we're at levels of public sector spending that took three years into World War II to in fact be."

With inflation currently at 2.4%, real wages are growing at approximately 1% year-on-year, which Wrynn described as "reasonable outcomes." The data emerges as a critical factor for the Reserve Bank's upcoming interest rate decision, with economists divided on whether to expect standard or accelerated rate cuts.

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