Admiral Markets welcomes new ASIC CFD trading rules
Estonia based Retail FX and CFDs broker Admiral Markets has issued a statement regarding new the ASIC rules governing FX and CFD trading in Australia. The company’s subsidiary Admiral Markets Pty Ltd is regulated by ASIC and holds an Australian Financial Services License.
Admiral Markets said that it acknowledges the recent announcement by the Australian Securities and Investments Commission (ASIC), following its consultation announced in August 2019, concerning product intervention measures related to the provision of CFDs.
In summary, leverage restrictions will now be in line with those already existing under the European Securities and Markets Authority (ESMA) since August 2018. The measures are set to be in effect on March 29, 2021, and will apply to retail clients only.
The new leverage ratios will be:
❑ 1:30 for CFDs referencing an exchange rate for a major currency pair.
❑ 1:20 for CFDs referencing an exchange rate for a minor currency pair, gold or a major stock market index.
❑ 1:10 for CFDs referencing a commodity (other than gold) or a minor stock market index.
❑ 1:2 for CFDs referencing crypto-assets.
❑ 1:5 for CFDs referencing shares or other assets.
Other measures for retail clients will also be implemented, such as margin close out protections and negative balance protection.
Admiral Markets stated that as a responsible Forex and CFD broker it welcomes these new regulations being introduced by ASIC. These regulations will be adopted by Admiral Markets Pty Ltd seamlessly and without issue, and clients will have nothing to worry about or actions to take care of. Admiral Markets noted that it has always been compliant with the requests of all regulatory bodies, and will continue to grow and adapt its business model when additional changes become necessary. These changes exist to keep the trading model on an even playing field, and encourages the innovation and creativity which defines the Admiral Markets brand.
The company said it works tirelessly to address the needs of active clients who trade all market directions; long and short. High Leverage can help your flexible trading style, but it is not the most important factor in order to be a successful trader. There are many factors which make for a winning trade, such as good spreads, the order execution quality, and state-of-the-art features like the firm’s MetaTrader Supreme package. In many European countries, Admiral Markets is the industry leader in market quality, and stated that it will always make sure to offer clients the best available offers.