SEDA Capital Markets Expert Supports Settlement in the Prosecution of a Major Australian Bank Around Government Bond Issuance

SEDA Experts
Dec 18
1 min read

Updated: Dec 19

SEDA Expert Mark McKendry was retained to provide his expert opinion on the management of large interest rate risk positions around primary issuance in a high-profile case involving a major bank in Australia, the national securities regulator and the Australian debt management office.

THE CASE

A major Australian bank became the subject of a regulatory investigation into its capital markets practices. At issue were concerns over potential deficiencies in its management of a large government bond issue and associated risk management processes. The investigation raised broader questions about the transparency, conduct and integrity of the Australian sovereign bond market.

THE EXPERTS' ROLE

SEDA Expert Mark McKendry was retained to provide guidance to the claimant’s counsel on the mechanics of the Australian bond market and the hedge management role in large syndications. He reviewed the case in the context of regulatory standards, market conventions and internal risk management frameworks.

THE RESULT

Assisted by Mr. McKendry’s input and expertise, counsel for the claimant was able to contextualize the issues and the charge of market manipulation was ultimately withdrawn. The claimant was able to settle this and several outstanding matters with the regulator on mutually acceptable terms.

EXPERT INVOLVED

Mark McKendry

Mark McKendry has over 25 years of global experience in capital markets, global treasury and digital assets. His areas of expertise include the trading of fixed income in the UK, Europe and Australasia. In addition, he has considerable experience in treasury risk management and bank governance.