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.
Recommended for you
As ASIC chair Joe Longo pushes firms to prepare for the upcoming mandatory climate disclosure regime, what skills are necessary if firms are looking to expand their ESG teams?
First Sentier Investors has announced it will close four of its Australian investment teams amid a simplification of the business, with $14 billion expected to be returned to investors.
Over 90 finalists have been chosen to compete at the 36th annual Fund Manager of the Year Awards, to be held in Sydney on 13 June.
Clients may be asking their adviser whether there is still value in the US technology names after their rally, but Fidelity International’s Lukasz de Pourbaix believes they can still offer upside.