FX transactions contributed more than 60 per cent to the total OTC derivatives transactions in 2018.
Interest in over-the-counter (OTC) foreign exchange (Forex) trading is growing among retail investors in Australia. That’s according to a speech on Wednesday by Cathie Armour, Commissioner of the Australian Securities and Investments Commission (ASIC).
Speaking at the ACI Redefining Conduct in FX Markets Seminar in Sydney on Wednesday, Armour noted that the number of retail clients trading OTC derivatives has doubled in the past two years.
Following a review in April 2019, ASIC found that there are now more than 60 contracts-for-difference (CFD) and binary options issuers licensed in Australia. Furthermore, the annual turnover for OTC derivatives was $21 trillion. The regulator found that 1 million investors are participating in this market, 99 percent of which are retail clients.
During 2018, 675 million transactions were made for OTC derivatives. From this, 426 million, or more than 60 percent, were in forex products. This is significantly higher than the regulator’s previous review when there were only 165 million transactions in FX products.
Armour notes that for FX products, there has been a large uptick in interest. Not only that, but this growth has been much faster than the growth in the number of CFD or binary options transactions over the same period.
Nonetheless, FX trading is still behind that of CFDs, with margin FX representing around 32 percent in terms of net revenue, whereas CFDs contribute 39 percent.
ASIC focuses on flaws in FX space - leverage
The ASIC Commissioner also pointed out quite a few flaws in the FX space, namely, 80 percent of OTC retail derivatives clients reside offshore and many margin forex issuers offer leverage of 400:1 and higher, which provides $2 million exposure on a $5,000 investment. In Armour’s own words, “That’s staggering exposure.”
“We will continue to review the data we’ve gathered and will address the key themes and concerns that arise from the review. Where we see that products or practices in this sector have resulted in, or are likely to result in, significant consumer harm then we will address this harm using the full range of power available to us,” the statement said.
In the speech, Armour also stated that ASIC has recently closed its consultation period for its proposed product intervention measures. The regulator plans to implement these temporary measures once it has reviewed the feedback.
As Finance Magnates reported, the Australian financial regulator is aiming to filter out products which it deems toxic to customers. Just as in Europe, ASIC is reviewing some of the most popular products for retail investors, namely binary options and CFDs.
Interest in over-the-counter (OTC) foreign exchange (Forex) trading is growing among retail investors in Australia. That’s according to a speech on Wednesday by Cathie Armour, Commissioner of the Australian Securities and Investments Commission (ASIC).
Speaking at the ACI Redefining Conduct in FX Markets Seminar in Sydney on Wednesday, Armour noted that the number of retail clients trading OTC derivatives has doubled in the past two years.
Following a review in April 2019, ASIC found that there are now more than 60 contracts-for-difference (CFD) and binary options issuers licensed in Australia. Furthermore, the annual turnover for OTC derivatives was $21 trillion. The regulator found that 1 million investors are participating in this market, 99 percent of which are retail clients.
During 2018, 675 million transactions were made for OTC derivatives. From this, 426 million, or more than 60 percent, were in forex products. This is significantly higher than the regulator’s previous review when there were only 165 million transactions in FX products.
Armour notes that for FX products, there has been a large uptick in interest. Not only that, but this growth has been much faster than the growth in the number of CFD or binary options transactions over the same period.
Nonetheless, FX trading is still behind that of CFDs, with margin FX representing around 32 percent in terms of net revenue, whereas CFDs contribute 39 percent.
ASIC focuses on flaws in FX space - leverage
The ASIC Commissioner also pointed out quite a few flaws in the FX space, namely, 80 percent of OTC retail derivatives clients reside offshore and many margin forex issuers offer leverage of 400:1 and higher, which provides $2 million exposure on a $5,000 investment. In Armour’s own words, “That’s staggering exposure.”
“We will continue to review the data we’ve gathered and will address the key themes and concerns that arise from the review. Where we see that products or practices in this sector have resulted in, or are likely to result in, significant consumer harm then we will address this harm using the full range of power available to us,” the statement said.
In the speech, Armour also stated that ASIC has recently closed its consultation period for its proposed product intervention measures. The regulator plans to implement these temporary measures once it has reviewed the feedback.
As Finance Magnates reported, the Australian financial regulator is aiming to filter out products which it deems toxic to customers. Just as in Europe, ASIC is reviewing some of the most popular products for retail investors, namely binary options and CFDs.
TradeStation and Coincheck Drive Monex's 850% Profit Surge
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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