Homepage > News > ASIC outlines operating costs and announces CFD restrictions

ASIC outlines operating costs and announces CFD restrictions

The Australian Securities and Investments Commission has admitted that it “is fully aware of the challenges many companies face due to COVID-19” but has not addressed the challenges that FX and CFD brokers will face due to the planned leverage restrictions.

ASIC has released a Costing Report (CRIS) for 2019-20, which provides regulated entities with detailed information on ASIC projected regulatory costs and activities by industry and sub-sector. The total regulatory cost is AUD 320,331 million.

The regulator particularized that the Market Infrastructure and Intermediaries sector has total operating expenses of $ 53.266 million. Supervision costs in this sector are the highest at AUD 13,083 million. The regulation of securities brokers has cost AUD 1.391 million, over-the-counter (OTC) traders – AUD 9.661 million, and over-the-counter derivatives issuers – AUD 10,384 million.

ASIC currently oversees 1,030 securities brokers, 77 over-the-counter (OTC) traders and 99 issuers of OTC derivatives. All of these entities pay contributions from which ASIC covers the costs of its activities. The regulator’s information comes shortly before the new CFD trading rules come into effect at the end of March. The leverage will be limited to such an extent that average trading volumes are expected to decline by about a third.

New Leverage Restrictions

From March 29, 2021, ASIC will limit the CFD leverage offered to retail clients to a maximum level of:

  • 1:30 for CFDs referencing the main currency pair’s exchange rate
  • 1:20 for CFDs that reference the exchange rate of another currency pair, gold or a major stock index
  • 1:10 for CFDs referencing a commodity (other than gold) or another stock index
  • 1: 5 for CFDs on stocks or other assets
  • 1: 2 for CFDs on cryptocurrencies
Author: Izabela Kamionka

Are you a trader?

Help others and rate your broker! Use the search engine or find your broker on the list.

exante baner

Last news:

bucharest exchange with record value of transactions

Stocks Surge on Positive May Jobs Report and Senate Debt Ceiling Bill Approval

Stocks rallied on Friday following the release of a robust May jobs report and news ...
Read More

FDIC Reports Largest Deposit Decline in US Banks in 39 Years

US banks faced a significant setback in the first quarter as they experienced the largest ...
Read More

Nvidia CEO Receives Rock Star Reception in Taiwan as AI Stocks Surge

Jensen Huang, the CEO of chip phenomenon Nvidia Corp. (NVDA), is currently enjoying celebrity treatment ...
Read More
turkish lira

Turkish Lira Hits All-Time Low as Erdogan Wins Re-election

The Turkish lira reached a new record low following the re-election of incumbent President Recep ...
Read More

Add a comment

Your email address will not be published. Required fields are marked *


Note: Opinions and posts on ForexRev.com represent personal opinions and views of their respective authors and should not be interpreted as recommendations to purchase or sell securities. ForexRev.org assumes no responsibility or liability for such content.
Go to top