What happened
ASIC has proposed extending its CFD product intervention order until 2037 and updating rules to explicitly cover contracts settled via digital assets. Regulatory data revealed 133,674 retail clients lost over $458 million trading CFDs in FY24, including $73 million in fees. Furthermore, 69 per cent of retail clients trading crypto-based CFDs incurred net losses.
Why it matters here
The proposed regulatory changes ensure that leverage limits and investor protections apply uniformly, regardless of whether derivative transactions use fiat currency or digital assets. For Australian retail investors, the figures highlight the substantial structural risks and high fees associated with over-the-counter derivative instruments.
What to watch
Watch for ASIC's final decision following the public consultation period, which closes on November 9, before the existing intervention order approaches its May 2027 expiration.
Source
brokernews.com.au