Australia's securities regulator has proposed extending its CFD product intervention order by 10 years to 2037, subject to ministerial approval, while widening the definition to include digital-asset-settled contracts. According to ASIC Commissioner Alan Kirkland, the proposed updates ensure protections apply consistently regardless of whether a CFD is settled by cash, set-off, or digital assets. The regulator has also proposed replacing 'cryptoasset' with 'digital asset' throughout the regulatory framework. Feedback on the draft instrument is open until 5pm AEDT on November 9, 2026, providing a four-week window for stakeholder consultation.
ASIC's proposed extension follows significant improvements in retail trading outcomes under the current restrictions. During the first six months of the existing order, aggregate net retail losses fell 91% from $372 million to $33 million per quarter, while margin close-outs decreased 87% quarterly. Active retail accounts also declined 29%, from 504,905 to 357,841. However, ASIC Commissioner Alan Kirkland acknowledged that CFDs remain highly risky, with losses over the latest 12 months exceeding $458 million, including $73 million in fees. The regulator noted that 68% of retail clients trading CFDs recorded net losses during Australia's 2023–24 financial year, with 85% of clients trading CFDs over options losing money.
The proposed amendments introduce significant operational changes to CFD margin requirements. Initial margin would be applied separately to each CFD and cannot be reduced by netting, which offsets long against short positions. ASIC would also clarify how initial margin applies to CFDs over options and contracts tracking an option's price, along with conditions for permitted discounts and educational or research tools. The regulator separately asks whether CFDs over options that expose retail clients to losses greater than the premium should remain available to retail investors. These margin changes represent the most operationally significant operational changes to the current CFD framework.
The existing CFD product intervention order, which took effect on March 29, 2021, and is scheduled to expire on May 23, 2027, has demonstrated substantial effectiveness in reducing retail harm. ASIC's supervision priorities had indicated the order would lapse unless remade, with the regulator planning consultation in 2026. The order currently carries four key protections: leverage limits, standardised margin close-out arrangements, negative balance protection (losses cannot exceed deposited funds), and a ban on certain inducements. The draft instrument remains a proposal and is not law until approved, with the regulator noting that the proposal is not law until approved.
Australia has been making changes to how cryptocurrency businesses operate under its financial services laws, with separate requirements covering exchanges, custody platforms and investment products. On September 30, ASIC's temporary licensing relief expired for certain digital asset businesses required to obtain authorization under existing legislation. ASIC recorded more than 45 digital asset licensing applications following updates to its regulatory guidance in October 2025. The Corporations Amendment (Digital Assets Framework) Act 2026 creates two regulated categories: digital asset platforms and tokenized custody platforms, with the new framework commencing on April 8, 2027. Existing operators have until October 7, 2027 to apply for required authorization, while ASIC has received more than 140 digital asset licensing applications, including more than 110 during the temporary relief period.
