Australia’s securities regulator has confirmed it will review the country’s CFD leverage restrictions ahead of their May 2027 expiry, with significant implications for all Australian brokers serving retail clients. ASIC announced Wednesday it will launch consultations in Q4 2026 on proposals to amend and extend the current product intervention order, which has capped leverage at 30:1 for major forex pairs and 2:1 for crypto CFDs since March 2021.
The regulatory timetable shows the review beginning Q3 2026, followed by ministerial approval sought in Q1 2027 before the May 23 deadline. While ASIC has not specified which provisions may change, the order currently includes margin close-out protection, negative balance protection, and inducement bans. This review runs parallel to a separate process extending financial requirements for OTC derivative issuers until 2032, creating dual regulatory timelines for brokers operating retail derivatives businesses.
FXnCO Insight
Australian CFD brokers should begin preparing compliance assessments now as potential rule changes could materially impact product offerings and capital requirements across two separate regulatory processes before mid-2027.
Source: Finance Magnates