Australian regulators clamps down on leveraged forex trading

dollar-squeeze-leverage — Regulators tighten requirements on retail forex brokers

- Garima Chitkara and Saima Farooqi
- 01 Oct 2012

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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

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