Australian regulators clamps down on leveraged forex trading

Asic clamps down on leveraged forex trading

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Regulators tighten requirements on retail forex brokers

The Australian Securities and Investments Commission (Asic) is introducing capital requirements for domestic firms selling over-the-counter derivatives to retail investors from January, to protect client assets in the event of a default.

Brokers of products including contracts-for-differences (CFDs) and leveraged forex trading will have to hold net tangible assets (NTA) greater than A$500,000, or 5% of average revenue, from January 31, 2013. The amount will double to A$1 million, or 10% of avera