The development
ASIC opened a consultation on October 12, 2026 to extend and amend its CFD product intervention order. The proposal would continue protections for ten more years, subject to ministerial approval, and address digital asset settlement and margin treatment. Feedback closes on November 9. The current order expires on May 23, 2027 unless extended. These are proposed changes, not a completed extension.
Source: ASIC consultation announcement, October 12, 2026.
FOLITIC analysis: settlement does not change leverage
The economic exposure of a contract depends on its payoff and size. Changing the asset used to settle a loss does not necessarily reduce the leverage that created it. For investors, this makes the contract terms more informative than the marketing label.
The proposal also highlights a distinction between offsetting market exposure and the cost of keeping two positions open. Opposing positions can limit directional movement while still creating financing charges and operational obligations. A small net exposure is not automatically a low cost position.
The next decision point
Watch the final instrument and commencement arrangements after consultation. Providers may need to change margin systems, customer terms or product availability, but the draft alone does not establish those final operational choices.
A useful comparison between CFD providers should include leverage limits, financing, closeout rules and the legal entity holding the account. An advertised spread is only one part of the cost. The proposed extension concerns Australian protections and should not be assumed to apply identically to accounts in other jurisdictions.
Photo: Historical photograph of Sydney’s skyline, illustrating Australian financial markets. Credit: Dietmar Rabich via Wikimedia Commons. Image license: CC BY SA 4.0. Displayed with a responsive crop. This file photograph illustrates the subject or location and does not depict the reported transaction.
