ASIC would pull crypto-settled CFDs under a leverage-cap order it wants to run to 2037
ASIC proposed on October 12 to extend its CFD product intervention order to 2037 and bring contracts settled in digital assets inside it. Feedback is due November 9, and the extension needs ministerial approval.
The Investor · Invest desk
A share bar: $73 million lost to fees out of the $458 million total of retail investor losses cited in the consultation paper, as reported by Crypto Briefing.
- Lost to fees, of retail losses, claim 10 $73 million of $458 million 16% computed
Lost to fees, of retail losses The rest of the 458
| Share | Part | Whole | Percent | Claim |
|---|---|---|---|---|
| Lost to fees, of retail losses | $73 million | $458 million | 16% (computed) | 10 |
What happened
- Under the draft, initial margin would apply to each CFD on its own, so traders could not net opposing positions to cut the collateral they post.
- ASIC is also asking whether options CFDs should stay available to retail clients at all, a question it leaves open for consultation and has not decided.
- The order now in force took effect in March 2021 and introduced leverage caps, mandatory position close-outs and protection against negative account balances.
Why it matters
- cost Active traders running offsetting positions would post separate initial margin on each leg, which Crypto Briefing says raises the capital needed for hedged or paired strategies.
- exposure Providers of crypto-settled CFDs in Australia would likely face the same leverage caps, close-out rules and negative balance protection as cash-settled contracts, according to Crypto Briefing.
- decision Providers that rely on options CFDs must decide whether to keep building them for retail clients while the question is open; Crypto Briefing says a restriction could force a rethink.
According to ASIC's research, the measures in the 2021 order have had a positive impact [8]. The consultation also cites retail losses of more than $458 million over the last 12 months [9], and $73 million of that was fees alone [10], just under 16% of the total [20]. The other $385 million or more [21] was lost with leverage caps, close-outs and negative balance protection already in force [6].
The extension could go differently in two ways. The minister could decline or delay, and the current order lapses on May 23, 2027 [7], 195 days after feedback closes [22]. Feedback could also reshape the proposal first, since Crypto Briefing notes the final form depends on both the consultation outcome and a political sign-off [17].
We think the order is extended with the digital-asset wording intact. The wording adds a settlement method to a definition that already covers cash settlement and offsetting obligations [12], and it reaches contracts tracking non-crypto assets only if they meet the other CFD criteria [13]. We would be wrong if the final instrument drops that wording.
The part of the paper that interests us is the edge ASIC left alone, or rather the line that separates outside from in. ASIC said certain crypto futures and options with fixed expiration dates would remain outside the CFD rules [5], so the draft's per-contract margin rule [4] would not reach them. Neither report says how ASIC separates those contracts from the ones it is pulling in.
A separate track runs on its own dates. Cointelegraph reported that legislation passed in April brings crypto exchanges and tokenized custody platforms under financial services licensing from April 9, 2027 [18], 44 days before the CFD order lapses [23]. ASIC also required crypto firms relying on temporary enforcement relief to apply for licenses by September 30 or seek changes to their existing licenses [19].
What to watch
- ASIC's response on options CFDs for retail clients once the November 9 feedback window closes.
- Whether the final instrument keeps initial margin per contract with no netting.
- Whether ministerial approval of the extension arrives before the current order lapses on May 23, 2027.
Clarity's read
What the record supports and how the coverage leans. The claims behind it follow.
Reality
- Evidence72
- Adoption
- Insufficient
- Hype gap+8
- Incentives
- Insufficient
- Confidence74
Perspective Coverage
4 publishers- Builder
- Builder 16%
- Operator
- Operator 48%
- Investor
- Investor 36%
Claim ledger
Ranked by verification strength, evidence, and original report placement.
- [1]
On October 12, 2026, ASIC published Consultation Paper CS 64, which proposes extending the existing CFD Product Intervention Order for ten years, out to 2037, subject to ministerial approval.
- [2]
Stakeholders have until November 9, 2026 to send feedback on the proposal.
- [3]
The draft instrument would explicitly bring CFDs that settle through a transfer of digital assets into the order's scope.
- [4]
Under the proposal, initial margin requirements would apply to each CFD on its own, so traders could not net opposing positions against each other to shrink the collateral they post.
- [5]
ASIC said that certain crypto futures and options with fixed expiration dates would remain outside the CFD rules.
- [6]
The current order took effect in March 2021 and introduced leverage caps, mandatory position close-outs and protections against negative account balances.
- [7]
The current order is set to expire on May 23, 2027.
- [8]
According to ASIC's research, the measures in the current order have had a positive impact.
- [9]
Retail investors lost more than $458 million in the last 12 months, per the figures cited in the consultation.
- [10]
The $458 million total includes $73 million lost to fees alone.
- [11]
Requiring separate initial margin for each contract raises the capital needed to run hedged or paired strategies, and the no-netting rule could matter most to active traders who run offsetting positions.
- [12]
The CFD rules generally cover contracts settled in cash or by offsetting obligations between the parties.
- [13]
ASIC wants to add contracts settled by transferring digital assets, including those tracking non-crypto assets, provided they meet the other criteria for a CFD.
- [14]
ASIC is asking for views on whether options CFDs should remain available to retail clients at all; the question is open for consultation, not a decision already made.
- [15]
For CFD providers offering crypto exposure in Australia, products that settle in digital assets would likely face the same leverage caps, close-out rules and negative balance protections as cash-settled contracts.
- [16]
If feedback pushes ASIC toward restricting options CFDs for retail clients, providers that rely on them could need to rethink their offerings.
- [17]
Any extension still requires ministerial approval, so the final shape of the rules depends on both the consultation outcome and a political sign-off.
- [18]
Australia passed legislation in April to bring crypto exchanges and tokenized custody platforms under its financial services licensing framework, with the new regime taking effect on April 9, 2027.
- [19]
ASIC required crypto firms relying on temporary enforcement relief under existing financial services law to apply for licenses by Sept. 30 or seek changes to their existing licenses.
- [20]
Fees were just under 16% (15.9%) of the retail losses cited in the consultation.
- [21]
Losses other than fees were at least $385 million.
- [22]
The current order's May 23, 2027 expiry falls 195 days after the November 9, 2026 feedback deadline.
- [23]
The crypto licensing regime starts 44 days before the CFD order's May 23, 2027 expiry.
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Sources
4 independent publishers whose own reporting we read for this story.
- cointelegraph.comAustralia proposes leverage caps for crypto-settled derivatives
1 article · October 12, 2026
- crypto.newsAustralia moves to bring crypto settled CFDs under retail trading rules
1 article · October 12, 2026
- cryptobriefing.comASIC consults on updated CFD safeguards for digital assets, deadline November 9, 2026
1 article · October 12, 2026
- cryptoslate.comAustralia moves to close crypto derivatives loophole after retail traders lose A$458 million
1 article · October 13, 2026
Topics and entities
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Topics
- Australian financial regulationFollow
- Retail Investor ProtectionFollow
- Crypto derivatives regulationFollow
- CFD regulationFollow
Entities
- Consultation Paper CS 64Follow
- Australian Securities and Investments CommissionFollow
- Alan KirklandFollow
- CFD Product Intervention OrderFollow