Saxo Group welcomes ASIC product intervention powers
Saxo Capital Markets has welcomed the Australian Securities and Investments Commission (ASIC) product intervention powers and reinforced the importance of responsible leverage.
In particular, the firm reinforced the importance of responsible leverage for retail investors trading in Contracts for Difference (CFDs) and Foreign Exchange (FX) in Australia.
Saxo expressed concern significant parts of the margin trading industry had not been sufficiently focused on protecting clients’ interests.
The multi-asset trading firm also said that some providers still offered excessive leverage, resulting in the significant risk of frequent stop-outs, which led to client loss.
Adam Smith, Saxo Capital Markets Australia chief executive officer, said he welcomed the move by ASIC to enhance protection and bring Australia in-line with other global markets.
“We look forward to seeing this new legislation being implemented in a practical sense, which will ultimately bring further protection for Australian traders and investors,” Smith said.
AUTHOR
Chris Dastoor
Recommended for you
Investment solution provider Channel Capital has appointed James Archer as its latest distribution director, joining from Pinnacle Investment Management.
Bennelong Funds Management has signed a memorandum of understanding with US private credit manager Monroe Capital to distribute its products in Australia.
Global equity manager Talaria Capital has appointed a Sydney-based sales director as it grows its distribution presence across Australia.
Global private markets firm Partners Group has launched an evergreen fund to provide Australian advisers with access to its cross-sector royalties strategy.
