ASIC Product Intervention Power

Effective from 29 March 2021, several changes will apply to how Australian retail clients trade CFDs, per ASIC’s Product Intervention Order – Contracts for Difference Instrument 2020/986.

With SAXO, the impact on your CFD trading conditions will be limited due to the responsible leverage levels we already offer on our CFD product. We are working to ensure a smooth transition for you but appreciate that you may have questions so please feel free to contact us to discuss this further.

What are the changes to Retail CFD trading

Restrict CFD leverage offered to retail clients to a maximum ratio

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CategoryInstrumentCurrent leverageEffective from 29 March 2021
Major currency pairAny two of the Australian dollar, British pound, Canadian dollar, Euro, Japanese yen, Swiss franc and US dollar;50:130:1
Minor currency pairAny currency pair that is not a major currency pair;50:120:1
Major stock market indexCAC 40, DAX, Dow Jones Industrial Average, EURO STOXX 50 Index, FTSE 100, NASDAQ-100 Index, NASDAQ Composite Index, Nikkei Stock Average, S&P 500 and S&P/ASX 200;40:120:1
Minor stock market indexAny stock market index that is not a major stock market index.40:110:1
Single stockCFD on single stock10:15:1
CommodityMetal - Gold25:120:1
CommodityCommodity CFDs except Gold25:110:1
Saxo is introducing new margin methodology, negative balance protection and more from 17 March 2021
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  • Margin close-out protection

    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.

  • Negative balance protection

    Protect against negative account balances by limiting a retail client’s CFD losses to the funds in their CFD trading account.

  • Prohibition on inducements

    Prohibit giving or offering certain inducements to retail clients.

  • What are the changes to professional/wholesale CFD trading

    The new ASIC regulations apply only to Retail clients so does not affect Professional / Wholesale clients.

    See the information on Professional / Wholesale clients 

  • Saxo’s voice: When you succeed, we succeed

    Our interests are aligned with yours. We are proud to be at the forefront of regulatory reform to promote  greater transparency and fairness in trading. We will always advocate for the best interests of our clients. 

    See why SAXO is your best choice

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