Briefing

ASIC proposes extending CFD retail protections for another decade

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On 12 October 2026 the Australian Securities and Investments Commission opened consultation CS 64 on extending and amending its CFD product intervention order. The order is still the current instrument. The extension is a proposal, and ASIC says any extension is subject to Ministerial approval.

A document with a margin bar, for a consultation that has not become a new rule
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Key facts

  • CS 64 was released on 12 October 2026. Comments close at 5 pm AEDT on 9 November 2026.
  • The current order is due to expire on 23 May 2027. An extension needs Ministerial approval.
  • The proposal covers margin, netting, inducements and digital-asset settlement. It is not a final instrument.

ASIC is seeking feedback on a proposal to extend and amend the ASIC Corporations (Product Intervention Order—Contracts for Difference) Instrument 2020/986. It says the order commenced on 29 March 2021 and is due to expire on 23 May 2027. It proposes to continue the protections for a further 10 years, and it says a 10-year extension would still leave it able to revoke the order earlier. A consultation paper was not issued. Comments go to Market.Intermediaries@asic.gov.au by 5 pm AEDT on Monday 9 November 2026.

The proposed amendments are targeted. ASIC proposes to clarify initial margin for CFDs over options, to require the initial margin to be applied separately to each CFD so opposing positions are not netted, to clarify the inducements prohibition including discounts and educational tools, and to replace the term cryptoasset with digital asset. It also proposes to modernise the definition so a derivative with the same economic characteristics can be covered when settlement is in cash, by set-off, or by a transfer of digital assets. ASIC says some fixed-expiry crypto derivatives, including certain crypto options and futures, would remain outside the order.

ASIC reports that in the 2023–24 financial year, 68 percent of retail clients who traded CFDs made a net loss, and that aggregate net retail client losses exceeded 458 million Australian dollars, including 73 million Australian dollars in fees. It says 85 percent of retail clients trading CFDs over options made a net loss. Those figures are ASIC’s account of that year. They are not a live loss rate. ASIC also says that, after it intervened on margin netting, 28 issuers refunded more than 36 million Australian dollars. It has not decided whether CFDs over options that can lose more than the premium should be prohibited or otherwise restricted for retail clients.

Why it matters for investors and traders

If the proposal is later adopted, it could change how CFD issuers set initial margin, how they treat opposing positions, how discounts are offered, and which digital-asset-settled derivatives sit inside the retail protections. None of that has happened because the consultation is still open.

Markets discussed: CFDs. These are the subjects of the briefing, not a list of markets that moved.

Uncertainties

  • Ministerial approval is still required before an extension can be made.
  • ASIC has asked for evidence on CFDs over options and has not decided whether to restrict them.
  • The draft instrument is numbered 2026/XX. This page does not treat that draft as law.

What to watch next

  • Check whether a final instrument is made, and its start date, before treating the proposal as the rule.
  • Check the product definition if a platform settles a derivative by transferring a digital asset.
  • The loss figures are ASIC’s 2023–24 figures. They are not a current account result.

How to read this development

ConsultationAustraliaAustralian Securities and Investments Commission

The official document is dated 12 October 2026. This briefing was published on 22 October 2026. A later status would be added as a new entry. The original status stays in the record.

Who is affected

ASIC is speaking to the retail CFD framework and to issuers of those products. It does not name a client’s contracting entity in this consultation.

What changes

The proposal would extend the current protections and amend margin, netting, inducement and definition terms. Until a final instrument is made, the current order remains the instrument ASIC describes.

When it applies

The consultation was released on 12 October 2026. Comments close on 9 November 2026. The current order is due to expire on 23 May 2027 unless it is extended.

Status history

  • 12 October 2026. Consultation. CS 64 opened. The extension and amendments are proposed, not made.

Markets, research and tools

Markets: CFD markets

Further reading: What a CFD is

These links are context. They are not a suggestion to trade, and they are not placed as advertisements.

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Sources and review

Written by: WiT Markets Editorial. Writes and structures WiT Markets pages. Separates a sourced fact from a cell that is Not confirmed.

Review: Editorially reviewed. This is not a qualified specialist review and it is not a legal sign-off.

Last reviewed: . Next review due . The date is an editorial pass. It is not a live check of every third-party fee.

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ASIC CFD consultation CS 64, 12 October 2026 | WiT Markets