PROPOSAL / CONFIRMED (ASIC release): This is a consultation, not law. ASIC’s proposed 10-year extension needs Ministerial approval, and nothing changes for CFDs settled in digital assets unless and until a new order is made.
The Australian Securities and Investments Commission (ASIC) has proposed extending its product intervention order (PIO) on contracts for difference (CFDs) for a further 10 years, and widening it to cover CFDs settled through the transfer of digital assets [1]. The regulator announced the consultation on 12 October 2026 [1].
“Subject to Ministerial approval, the extended CFD PIO would remain in force until 2037 unless revoked earlier,” ASIC said [1]. The current order is due to expire on 23 May 2027 [1].
What a CFD is
A CFD is a contract that lets a trader bet on whether the price of something, such as a share, currency or commodity, will go up or down, without owning it. ASIC describes CFDs as “complex, leveraged, over-the-counter (OTC) products that can expose retail investors to significant losses”, adding that “a small price change against a leveraged CFD position can have a big effect on trading returns or losses, even loss of the entire investment” [1].
What ASIC is proposing
According to ASIC, the proposed order would [1]:
- modernise the definition of CFDs to also include CFDs settled through the transfer of digital assets;
- clarify how initial margin requirements apply to CFDs over options;
- confirm that initial margin must be applied separately to each CFD and cannot be reduced by netting opposing positions;
- clarify conditions for permitted discounts and educational or research tools; and
- change the term “cryptoasset” to “digital asset”.
ASIC is also asking whether CFDs over options that can lose retail clients more than the premium should remain available to them [1].
Why, according to ASIC
ASIC Commissioner Alan Kirkland said: “Within six months of our current order taking effect, aggregate net losses by retail client accounts fell by 91%.” [1]
“However, CFDs continue to remain highly risky products. ASIC’s data repeatedly shows that most retail investors lose money trading CFDs, with our most recent data indicating losses over a 12-month period exceeded $458 million, including $73 million in fees.” [1] (Figures in Australian dollars, AUD.)
On digital assets, he 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” [1].
What happens next
Feedback is due by 5pm AEDT on 9 November 2026, via ASIC’s consultation CS 64 [1]. The extension then needs Ministerial approval [1]. Until then, the current order stays as it is.
Sources
- ASIC, “26-239MR ASIC moves to extend and strengthen CFD consumer protections”, 12 October 2026. https://www.asic.gov.au/about-asic/news-centre/find-a-media-release/2026-releases/26-239mr-asic-moves-to-extend-and-strengthen-cfd-consumer-protections
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