‘Margin discounts' for CFDs under ASIC scrutiny

CFD issuers that offer 'margin discounts' must cease doing so immediately.

ASIC warned providers in their most recent Market Integrity Update issued in July 2024. They expressed concern that some CFD issuers are offering 'margin discounts' to retail clients with opposing long and short contracts in contravention of ASIC Corporations (Product Intervention Order – Contract for Difference) Instrument2020/986 ("CFD PIO").

Sophie Grace encourage all CFD issuers in Australia, in relation to their offering of CFDs to retail clients, to:

1. Check disclosure documents (i.e. PDS, T&Cs / Client Agreement / FSG) and ensure 'margin discounts' are not provided for under these disclosure documents;