ASIC plans consultation on CFD leverage rules before 2027 expiry

Australia's securities regulator ASIC is preparing to consult on the future of its retail CFD product intervention order, which is due to expire on 23 May 2027, according to Finance Magnates, which reported on 26 August 2026.

What was announced

The order was made in March 2021 and extended for five years in April 2022. It applies to every Australian licensee that issues CFDs to retail clients. According to the report, it caps leverage at 30:1 for major currency pairs and 2:1 for crypto CFDs, and it requires margin close-out protection, negative balance protection and standardised risk warnings. It also bans certain inducements.

Based on ASIC's regulatory timetable as cited in the article, the review begins in the third quarter of 2026 and public consultation follows in the fourth quarter. ASIC then plans to seek ministerial approval in the first quarter of 2027, with the instrument either extended or lapsing in the second quarter. The corporate plan says ASIC will consult on proposals to amend and extend the order, but neither the plan nor the timetable says which provisions might change.

The article also mentions a separate proposal to extend the financial requirements instrument for retail over-the-counter derivative issuers to 2032, with the minimum net tangible assets test unchanged.

Why it matters for traders

The order sets the basic safety features of CFD accounts offered in Australia, so any amendment would affect the product terms available to local clients. At this stage nothing has been decided: there is no draft text, and the outcome depends on the consultation. Traders outside Australia may still follow it, because leverage rules in different regions often influence each other.

What to check

• The leverage and negative balance terms in your account agreement.
• Which entity and regulator your account is held with.
• ASIC's consultation page when it opens, if you want to read the proposals directly.