ASIC Proposes Extending CFD Capital Rules to 2032

ASIC has proposed keeping the existing financial resource requirements for Australian retail OTC derivatives issuers in place for another five years.

The rules, which apply to firms offering products such as CFDs to retail clients, are currently due to expire on October 1, 2027. ASIC wants to extend them to October 1, 2032 without changing the existing capital thresholds.

AU$1 Million Minimum Would Remain

Under the current framework, affected licence holders must maintain net tangible assets equal to the greater of AU$1 million or 10% of average revenue.

At least half of the required amount must be held in cash or cash equivalents, with the remainder kept in liquid assets.

The AU$1 million minimum has been in place since 2014 and would remain unchanged under the proposal.

No Inflation Adjustment Proposed

ASIC recently moved to increase and index capital thresholds for some other financial services firms, but the current consultation does not propose the same treatment for retail derivatives issuers.

If the extension is approved, the existing CFD capital requirement could remain unchanged through 2032.

The rules also require firms to prepare quarterly cash-flow projections and notify ASIC if their financial resources fall below specified levels.

CFD Leverage Rules Follow a Separate Schedule

The capital requirements are separate from ASICs product intervention rules for retail CFDs, which include leverage limits and negative balance protection.

Those measures are currently scheduled to expire in May 2027 and are not part of the latest extension proposal.

Public feedback on the capital-rule extension is open until September 8, 2026.

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