Australia's markets regulator wants to keep its limits on contracts for difference for another four years. The Australian Securities and Investments Commission (ASIC) has proposed extending its contract for difference (CFD) product intervention order, which is due to expire on 23 May 2027, until the order's sunset date of 1 April 2031, subject to the Minister's approval.

Submissions on the plan, set out in consultation CS 64, are open until 5pm AEDT on 16 November 2026, a week later than first planned.

The order is the reason Australian retail clients trade with leverage of 30:1 on major currency pairs instead of the 500:1 that was common before 2021. ASIC also wants to tighten parts of it, including how margin works when a client holds opposing positions.

Order expires (ASIC)23 May 2027
Proposed new end date1 April 2031, subject to Ministerial approval
ConsultationCS 64, submissions to 5pm AEDT 16 November 2026
Latest 12-month retail lossesMore than A$458 million, including A$73 million of fees

What ASIC is proposing

The core proposal is simple: keep the order in force beyond May 2027. An earlier version of the consultation said 2037; ASIC has corrected that, because extending an order does not restart the 10-year sunset period that applies to legislative instruments, so 1 April 2031 is the latest it can run. ASIC says it is separately looking at how to keep CFD protections in place after that date.

Alongside the extension, ASIC proposes several amendments:

  • CFDs that are settled by transferring digital assets would be brought inside the definition of a CFD, closing a gap that some providers could use.
  • Initial margin would apply to each CFD separately, with no reduction for netting opposing positions. A client who is long and short the same market would need margin on both.
  • The rules on initial margin for CFDs over options would be clarified.
  • The conditions for permitted discounts and for educational or research tools would be spelled out, since inducements to trade are banned under the order.
  • The term "cryptoasset" would be replaced with "digital asset".

ASIC is also asking a sharper question: whether CFDs over options that can expose retail clients to losses greater than the premium they paid should stay available to retail investors at all.

What the order changed in 2021

The order took effect in March 2021. Its main limits are leverage caps by asset class, a rule that positions are closed when margin falls to 50% of the requirement, protection from negative balances, and a ban on inducements such as trading credits and gifts. ASIC's figures on what followed are striking.

Measure (ASIC)Before the orderSix months after
Aggregate net retail losses, per quarterA$372 millionA$33 million (−91%)
Margin close-outs, per quarterBaseline−87%
Active retail accounts504,905357,841 (−29%)
Asset classMaximum leverage under the order
Major currency pairs30:1
Minor currency pairs, gold, major stock indices20:1
Other commodities, minor stock indices10:1
Shares5:1
Digital assets (crypto)2:1
What ASIC's CFD order changed (first six months)Retail losses per quarterA$372mBeforeA$33mAfter−91%Active retail CFD accounts505kBefore358kAfter−29%ASIC CFD order: losses and accounts before and after · source ASIC 26-239MR
Quarterly losses fell by more than nine-tenths within six months of the 2021 order.

Losses have not gone away. In its most recent data ASIC says retail clients lost more than A$458 million over 12 months, including A$73 million in fees. A separate review in January 2026 secured nearly A$40 million of refunds for more than 38,000 retail investors.

ASIC Commissioner Alan Kirkland said the order had "materially reduced retail investor harm by addressing key drivers of harm, like excess leverage," but added that "CFDs continue to remain highly risky products."

Who this affects

  • Australian retail clients of ASIC-licensed brokers keep today's leverage caps and protections if the extension goes ahead. Nothing changes overnight.
  • Traders who hedge with opposing positions on one account would need more margin under the no-netting proposal, which could trigger close-outs sooner on a small account.
  • Crypto CFD traders would be covered even where a contract settles in digital assets.
  • Wholesale and professional clients are outside the order, as they are today.

Many brokers that hold ASIC licences also run offshore entities that offer far higher leverage. An Australian resident signing up through an offshore entity loses these protections. Our leverage limits by country page compares the caps, and our guide to checking a broker's licence shows how to confirm which entity holds your account.

Worked example: what 30:1 means in dollars

To open a A$30,000 position in AUD/USD, a client needs at least A$1,000 of margin at 30:1, compared with about A$60 at 500:1. A 2% move against the position costs A$600 either way. At 30:1 that is 60% of the margin; at 500:1 the account would already have been closed out many times over.

How to respond to the consultation

Anyone can make a submission: traders, brokers, industry bodies and consumer groups. ASIC's release links the consultation paper and the draft instrument. Submissions close at 5pm AEDT on 16 November 2026, after which ASIC will decide what to put to the Minister. We will report the outcome.

CFDs and leveraged forex carry a high risk of losing money rapidly. Regulatory protections reduce some risks but do not remove them. This article is news, not financial advice.

Figures are from ASIC media release 26-239MR and consultation CS 64, read on 9 November 2026. Amounts are Australian dollars.

Cite this guide

FX Recap, "ASIC Moves to Keep Australia's CFD Leverage Limits Until 2031: Submissions Close 16 November", updated 8 November 2026, https://fxrecap.com/forex-news/top-stories/asic-cfd-rules-extension-2031

Free to quote with a link. Journalists: data and comment in our press room.

Frequently asked

What is ASIC's CFD product intervention order?

A set of limits on CFDs for Australian retail clients that took effect in March 2021: leverage caps by asset class (30:1 on major currency pairs), a 50% margin close-out rule, negative balance protection and a ban on inducements.

When does ASIC's CFD order expire?

It is due to expire on 23 May 2027. ASIC has proposed extending it until 1 April 2031, subject to Ministerial approval.

When do submissions on ASIC's CFD consultation close?

At 5pm AEDT on 16 November 2026. ASIC extended the original four-week window by one week.

Did ASIC's leverage limits reduce losses?

Yes. ASIC says aggregate net retail losses fell 91% within six months, from A$372 million to A$33 million a quarter, though losses still topped A$458 million in the latest 12 months.

Will hedged positions need more margin?

Under the proposal, initial margin would apply to each CFD separately with no netting of opposing positions, so a long and a short in the same market would each need margin.

Sources: ASIC: 26-239MR, ASIC moves to extend and strengthen CFD consumer protections · ASIC: CS 64 consultation on the CFD product intervention order