Update
ASIC Seeks 10-Year CFD Curbs in Australia
The Australian Securities and Investments Commission (ASIC) has proposed extending existing restrictions on contracts for difference (CFDs) after retail traders lost over $458 million in the 2023-24 financial year. ASIC announced the proposal on October 12, citing losses of $73 million in fees and 68% of retail CFD traders losing money. The existing order, which limits leverage and requires providers to close positions when account funds fall below specified levels, is set to expire on May 23, 2027. The new proposal would change how providers calculate initial margin requirements for CFDs, with each CFD having its own margin requirement without offsetting gains or exposure from opposing positions. ASIC also wants clearer rules on trading incentives and will replace 'cryptoasset' with 'digital asset' in its regulations. The extension would provide greater regulatory certainty for CFD providers, though it could be revoked earlier. Exemptions include certain cryptocurrency futures and options with fixed expiry dates.