ASIC Proposes Extending CFD Investor Protections to 2037

ASIC CFD protections could remain in force until 2037 under a proposal announced on October 12, 2026. The Australian regulator is consulting on a further 10-year extension and amendments to its product intervention order (PIO), subject to Ministerial approval.

Broader Coverage and Margin Rules

The proposed changes would cover CFDs settled through digital asset transfers, ensuring consistent protections for products with comparable economic characteristics and risks.

ASIC also proposes clarifying initial margin rules for CFDs over options and confirming that margin must apply separately to each CFD, without reductions through netting opposing positions. Other changes concern permitted discounts, educational and research tools, and replacing “cryptoasset” with “digital asset”.

Retail Losses Remain Significant

ASIC said aggregate quarterly net losses fell 91% during the order’s first six months. However, its latest data showed retail losses exceeding A$458 million over 12 months, including A$73 million in fees.

The current order provides leverage limits, standardised margin close-out arrangements, negative balance protection and restrictions on certain inducements. It is due to expire on May 23, 2027.

Feedback Due November 9

Submissions close at 5pm AEDT on November 9, 2026. ASIC is separately seeking views on whether CFDs over options that expose retail clients to losses exceeding the premium should remain available to them.

These are proposals, not final amendments. ASIC cautions that CFDs remain highly risky and that leverage and financing fees can magnify losses.

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