From 29 March 2021, ASIC’s product intervention order will:
restrict CFD leverage offered to retail clients to a maximum ratio of:
30:1 for CFDs referencing an exchange rate for a major currency pair
20:1 for CFDs referencing an exchange rate for a minor currency pair, gold or a major stock market index
10:1 for CFDs referencing a commodity (other than gold) or a minor stock market index
2:1 for CFDs referencing crypto-assets
5:1 for CFDs referencing shares or other assets
standardise CFD issuers’ margin close-out arrangements that act as a circuit breaker to close-out one or more a retail client’s CFD positions before all or most of the client’s investment is lost
protect against negative account balances by limiting a retail client’s CFD losses to the funds in their CFD trading account, and
prohibit giving or offering certain inducements to retail clients (for example, offering trading credits and ******s or ‘free’ gifts like iPads).