New regulatory limits on CFD leverage

[doctorj]

The Financial Services Agency in Japan (”FSAJ”) have announced a short period of public consultation on proposals to limit leverage on contracts for difference (”CFDs”) over certain asset classes. They propose restricting leverage to 5 times for shares, to 10 times for equity indices and to 50 times for bonds. The public consultation will run until 16 November 2009 with any restrictions coming into force approximately one year later.

This may be of interest to some here that use CFDs. While things are very early stage and it's not even being discussed in Aus yet, it may be worth keeping an eye on...

 

[jono1887]

This may be of interest to some here that use CFDs. While things are very early stage and it's not even being discussed in Aus yet, it may be worth keeping an eye on...

Hmm.. regulation generally takes quite a while to get implemented. Nothing to worry about in the near future I think.

 

[Krusty the Klown]

I don't know if CFD providers would have enough lobbying power to stop this being implemented. It would affect their profits.

If it was regulation that significantly affected big 4 bank profits it would be a different story though. The cheque books would be opening in Canberra en masse......

P.S. Change that to cash, cheques leave a paper trail.....