ASIC Extends CFD Trading Restrictions for Five Years

The Australian Securities and Investments Commission (ASIC) has announced that it is extending the new contracts for difference (CFDs) requirements for another five years, until 23 May 2027. They have been in force since March 2021 and coincide almost entirely with those regulators imposed in the EU and the UK in mid-2018. The restrictions are to limit the leverage that brokers can offer to retail clients when trading CFDs, introducing negative balance protection and some marketing restrictions such as a ban on trade credits and discounts or free gifts for customers.