ASIC Proposes 10-Year CFD Order Extension to 2037
The Australian Securities and Investments Commission (ASIC) has proposed extending its product intervention order on contracts for difference (CFDs) by 10 years, to 2037, subject to Ministerial approval. ASIC published the draft on 12 October 2026 in media release 26-239MR and consultation paper CS 64. The current order, which commenced on 29 March 2021 and was extended on 6 April 2022, expires on 23 May 2027.
A product intervention order (PIO) is an ASIC rule restricting how a product is sold, and a CFD is a contract that pays out on the change in an asset’s price. The order carries four protections: leverage limits, standardised margin close-out arrangements, negative balance protection (losses cannot exceed deposited funds) and a ban on certain inducements. ASIC’s supervision priorities had already said the order would lapse unless remade and that it would consult in 2026.
The draft also closes a gap in the definition. ASIC Commissioner Alan Kirkland said:
Some products expose retail investors to the same risks as CFDs but may fall outside the current PIO because of how they are settled. The proposed updates ensure protections apply consistently, regardless of whether a CFD is settled by cash, set-off or digital assets.
Alan Kirkland, ASIC Commissioner
Set-off means settling by cancelling mutual obligations. The draft would also replace “cryptoasset” with “digital asset” throughout.
The margin changes matter most operationally. Initial margin, the deposit needed to open a position, would have to be applied separately to each CFD and could not be reduced by netting, which offsets long against short positions. ASIC would also clarify how initial margin applies to CFDs over options, contracts tracking an option’s price, and the conditions for permitted discounts and for educational or research tools.
| Proposed change | What it does |
|---|---|
| Order term | Runs to 2037 unless revoked earlier, subject to Ministerial approval |
| CFD definition | Includes CFDs settled through transfer of digital assets |
| Initial margin | Applied separately to each CFD, not reduced by netting |
| Options CFDs | Clarifies how initial margin applies |
| Discounts and tools | Clarifies conditions for permitted discounts and educational or research tools |
ASIC separately asks whether CFDs over options that expose retail clients to losses greater than the premium should stay available to retail investors at all.
ASIC justifies the extension with the results of the current order. In its first six months, aggregate net retail losses fell 91%, from $372m to $33m a quarter, and margin close-outs fell 87% a quarter, while active retail accounts fell 29%, from 504,905 to 357,841. Later reviews show the reduction in harm has largely been maintained. Kirkland also said CFDs remain highly risky, with losses over the latest 12 months exceeding $458m, including $73m in fees.
CFD issuers, industry bodies, consumer representatives and other stakeholders can respond until 5pm AEDT (Australian Eastern Daylight Time) on 9 November 2026, a four-week window. The draft instrument number is still 2026/XX, and the proposal is not law until approved.
