- ASIC wants its CFD product intervention order extended from 2027 to 2037, subject to ministerial approval.
- The regulator proposes expanding the CFD definition to include products settled through digital asset transfers rather than only cash or set-off.
- ASIC said retail client losses fell 91% within six months of the existing rules taking effect, although investors still lost more than $458 million over a recent year.
- Proposed changes would also clarify margin requirements, terminology and investor protections, with submissions open until 9 November 2026.
ASIC is proposing to keep its retail CFD (contract for difference) protections in force until 2037 and widen the rules so that products settled with digital assets are treated the same way as other CFDs.
The Australian Securities and Investments Commission has opened a four-week consultation on changes to its product intervention order, which is due to expire on 23 May 2027. If approved by the minister, the revised order would remain in place for another 10 years unless withdrawn earlier.
A key change would bring CFDs settled through transfers of digital assets within the regime. ASIC says the current wording may leave some products outside the rules even when their economic effect and risk profile are essentially the same as conventional CFDs.
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ASIC Commissioner Alan Kirkland said the existing measures had sharply reduced harm to retail traders.
Within six months of our current order taking effect, aggregate net losses by retail client accounts fell by 91%.
ASIC Commissioner Alan Kirkland In the first six months after the order began, quarterly net losses across retail accounts dropped from $372 million to $33 million. Margin close-outs also fell 87%, while active retail accounts declined 29%.
Despite that improvement, ASIC says CFDs remain a high-risk product. Its latest data shows retail clients lost more than $458 million over a 12-month period, including $73 million in fees.
Digital Asset Settlement and Margin Rules
CFDs let traders take a position on an asset’s price movement without owning it directly. They are usually leveraged, meaning traders put up only part of the position’s value, which can increase losses when the market moves against them.
ASIC also wants to clarify how initial margin rules apply to CFDs based on options. Under the proposal, margin would have to be calculated separately for each CFD, preventing firms from lowering the requirement by offsetting one position against another.
The regulator is also considering clearer rules for discounts, education and research tools, while replacing the term “cryptoasset” with “digital asset” in the order.
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Separately, ASIC is asking whether retail investors should still be allowed to trade CFDs over options where potential losses can exceed the premium paid.
The intervention order has been in place since 29 March 2021. Its protections include leverage limits, mandatory position closures when margin drops too far, safeguards against negative account balances and restrictions on certain incentives.
Feedback on both the proposed extension and the options issue is open until 5pm AEDT on 9 November 2026.
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