ASIC Wants CFD Protections Extended to 2037 and Expanded to…
By Rick Steves
AI summary of the source article
ASIC has proposed extending retail CFD restrictions until 2037 and expanding the perimeter to include products settled through digital assets. The proposal also prohibits initial margin reductions for opposing positions and reviews CFDs over options.
Why it matters
ASIC stated that "different treatment based only on settlement form would create an opening for product engineering around rules designed to address the underlying risk."
Key facts
- ASIC proposes extending retail CFD restrictions, including leverage limits and negative balance protection, until 2037.
- The rules would expand to derivatives with CFD characteristics that settle through digital-asset transfers instead of cash differences.
- Issuers would be barred from reducing initial margin requirements simply because a client holds opposing long and short positions.
Source excerpt · FinanceFeeds
Australia’s securities regulator has proposed keeping its retail CFD restrictions in force for another decade while widening the rules to products settled through digital assets. The ASIC consultation would preserve leverage limits, standardised margin close-outs, negative balance protection and restrictions on inducements until 2037, subject to ministerial approval. It would also close gaps creat…