Australian regulators clamps down on leveraged forex trading

Asic clamps down on leveraged forex trading

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