ASIC proposes 10-year extension of CFD consumer protections

The Australian Securities and Investments Commission (ASIC) has proposed extending and amending its product intervention order (PIO) for contracts for difference (CFDs). If approved by the Minister, the order would remain in force until 2037, extending the current protections which are set to expire in May 2027.

The proposed updates aim to modernize the definition of CFDs to include those settled through the transfer of digital assets, replacing the term ‘cryptoasset’ with ‘digital asset’. The draft instrument also seeks to clarify margin requirements, specifically stating that initial margin requirements must be applied separately to each CFD and cannot be reduced by netting opposing positions.

Additionally, ASIC is reviewing whether CFDs over options that expose retail clients to losses exceeding the premium should remain available to retail investors. The regulator has invited industry stakeholders, including CFD issuers and consumer representatives, to provide feedback on these proposals by 9 November 2026.