The Australian Securities and Investments Commission has proposed extending its contracts for difference product intervention order for 10 years and updating its scope to cover products with the same economic characteristics and risks, regardless of whether they are settled in cash, by set-off or through digital asset transfers. Subject to ministerial approval, the order would remain in force until 2037 unless revoked earlier, preserving protections including leverage limits, standardized margin close-out arrangements, negative balance protection and restrictions on inducements. The amendments would include digitally settled CFDs, clarify initial margin requirements for CFDs over options and confirm that margins must be calculated separately for each CFD without netting opposing positions. They would also clarify the conditions for permitted discounts and educational or research tools. ASIC is separately seeking views on whether retail investors should continue to have access to CFDs over options where potential losses exceed the premium. The regulator reported that aggregate net losses by retail accounts fell 91% within six months of the current order taking effect, although its latest data show retail CFD losses exceeded AUD 458 million over 12 months, including AUD 73 million in fees.
Australian Securities and Investments Commission proposes 10-year extension and broader scope for CFD retail protections
The Australian Securities and Investments Commission has proposed extending its CFD product intervention order for 10 years and broadening it to include CFDs settled through digital asset transfers. The amendments would clarify margin and netting rules and ASIC is also considering whether retail access to CFDs over options with losses exceeding the premium should continue.