The Australian Securities and Investments Commission (ASIC) has released Consultation Paper CS 64, proposing a ten-year extension of its Product Intervention Order for contracts for difference (CFDs) until 2037. The regulator is currently accepting stakeholder feedback until November 9, 2026, pending final ministerial approval.
A key update in the proposal is the inclusion of CFDs settled via digital assets within the regulatory scope. The draft also replaces the term cryptoasset with digital asset throughout the document and clarifies rules regarding broker inducements. ASIC is further seeking industry input on whether to continue offering options CFDs to retail clients.
New margin requirements are also under consideration, which would mandate that initial margin be applied to each CFD individually. This change would prevent traders from netting opposing positions to reduce collateral requirements. The current order, which introduced leverage caps and negative balance protections, remains in effect until May 23, 2027.
ASIC reports that retail investors lost over $458 million in the past 12 months, with $73 million attributed to fees. The regulator notes that products settling in digital assets would be subject to the same leverage caps and close-out rules as cash-settled contracts if the proposal is adopted.
