What are the changes?
The changes released by ASIC include:
Leverage ratio limits
• 30:1 for CFDs referencing an exchange rate for a major currency pair
• 20:1 for CFDs referencing an exchange rate for a minor currency pair, gold or a major stock market index
• 10:1 for CFDs referencing a commodity (other than gold) or a minor stock market index
• 2:1 for CFDs referencing crypto-assets
• 5:1 for CFDs referencing shares or other assets
Margin close-out percentages - standardise CFD issuers’ margin close-out arrangements that act as a circuit breaker to close-out one or more a retail client’s CFD positions before all or most of the client’s investment is lost
Negative balance protection - protect against negative account balances by limiting a retail client’s CFD losses to the funds in their CFD trading account
Promotional offers - prohibit giving or offering certain inducements to retail clients (for example, offering trading credits and rebates or ‘free’ gifts like iPads).
Binaries and Countdown products - Countdowns were removed from the Next Generation platform on the 30 April 2021
