ASIC Regulatory Changes
On Friday 23 October 2020, ASIC announced it will be introducing several changes to the way IC Markets can offer CFDs and services to retail clients trading with International Capital Markets Pty Ltd, IC Markets’ ASIC licensed entity.
These changes include new minimum margin rates, leverage reduction, negative balance protection, and some restraints on certain inducements (such as bonuses and promotions) – effective from Monday 29th March 2021.
For now, there are no immediate changes to your IC Markets trading account.
Future changes to margin rates
Below is a table that showcases the new maximum margin rate/leverage level for retail clients.
The rise in margin requirements as a result of ASIC’s rules will apply from Monday 29th March 2021.
|Asset Class||Minimum margin rate from 29 March 2021|
|Major Forex Pairs||3.33% (30:1)|
|Minor Forex, Major Indices||5% (20:1)|
|Minor Indices||10% (10:1)|
|Commodities (exclusing Gold)||10% (10:1)|
|Shares or other underlying assets||20% (5:1)|
|Options, ETFs||20% (5:1)|
Other notable changes for retail clients
|Margin close-out protection||If the net equity in your CFD trading account falls below 50% of the aggregate initial margin required for all your open CFD positions at that time that are connected to that account, one or more of your CFD positions will be closed out as soon as market conditions allow.|
|Negative balance protection||The total losses on your CFD positions will be limited to the funds in your trading account(s).|
|Prohibition on inducements||Certain benefits cannot be given or offered to you as an inducement to open or fund a CFD account or trade CFDs.|
It is important to understand that these new changes will only affect retail clients, and not apply to wholesale clients or professional traders.
If you would prefer not to be impacted by these changes, then you can check to see whether you qualify as a wholesale or professional investor and become an IC Markets Pro trader.
Need more information?
You can find out more about all of ASIC’s new rules on the ASIC’s Press Release.
IC Markets will continue to focus on delivering the best possible trading experience to all clients.
IC Markets has worked in the past year to be ready for such intervention and they are here to assist you to navigate through these changes, please do not hesitate to contact IC Markets’ friendly and experienced customer support for more information.