Add as a preferred source on GoogleAustralia’s ASIC Weighs Leverage Caps for Digital-Asset Derivatives
The proposed rules would extend CFD protections to some digitally settled contracts, including forced closeouts and negative-balance protection.
Australia’s financial regulator is considering leverage caps for derivatives settled in digital assets, potentially bringing some crypto contracts under stricter retail trading protections.
The Australian Securities and Investments Commission (ASIC) is proposing to extend and revise its intervention order for contracts for difference, or CFDs, through 2037. The changes would include digital-asset-settled contracts within the CFD framework.
Products covered by the rules would face leverage limits, mandatory closeouts when traders no longer meet margin requirements and negative-balance protection. The measures are designed to limit losses for retail investors trading leveraged derivatives.
Some crypto futures and options with fixed expiration dates would remain outside the CFD rules under the proposal, creating a distinction between products based on their structure and settlement method.
The consultation is scheduled to close Nov. 9. Any revised intervention order would still require approval from the responsible minister before taking effect.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.