ASIC Sets Q4 Consultation on CFD Leverage Rules Ahead of 2027 Expiry

​Australia's CFD leverage limits face another review, with the Australian Securities and Investments Commission (ASIC) announcing it will consult on extending the product intervention order. The order, which expires on May 23, 2027, caps leverage at 30:1 for major foreign exchange pairs and 2:1 for crypto CFDs, and requires margin close-out protection, negative balance protection, and standardized risk warnings while banning certain inducements. ASIC's regulatory timetable shows the review beginning in Q3 2026, followed by consultation in Q4, with the regulator seeking ministerial approval in Q1 2027 and the instrument either extended or expiring in Q2 2027. "Strong regulation and economic growth are not opposing objectives," ASIC Chairwoman Sarah Court said.

The current order was imposed in March 2021 and extended for five years in April 2022. A separate process is already underway for financial requirements applying to retail OTC derivative issuers, with ASIC proposing to extend that instrument to 2032 without changing the minimum net tangible assets test. The capital instrument expires on October 1, 2027, meaning brokers face two regulatory processes. ASIC also shortened its performance target for routine AFS license applications, aiming to finalize 80% within 120 days, down from 150 days, effective from July 1, 2026. Other efficiency commitments include cutting thematic surveillance notices by 15% and targeting in-principle decisions on 70% of completed relief applications within 28 days. The regulator will issue guidance for digital asset platforms and tokenized custody platforms under Australia's new framework starting in April 2027, and plans to examine AI use in banking and monitor AI-driven manipulation. Enforcement targets remain unchanged, with at least 25 criminal referrals and 30 civil proceedings annually through the 2029-30 financial year.