Deloitte is conducting a survey among retail traders and partners following the proposed regulations released by the Australian Securities and Investment Commission (ASIC). The proposals from ASIC were met with mixed reactions from industry players, and the big four firms is seeking contributions from those who will be affected by the regulations.

ASIC proposed regulations

ASIC released a detailed proposal in which it outlines intentions to limit the methods through which OTC CFDs are sold. The regulator released the proposed regulations in August, and there have been different reactions to these measures. ASIC believes that several retail clients have been automatically closed out of their positions by their provider of CFD options when they are at low margin levels. Spot FX is currently not covered by the proposals put forward by ASIC.

Deloitte surveys industry players

Deloitte Australia is currently conducting a survey among stakeholders in the industry. The big four firms are running the study on its website where concerned industry players answer questions about their position on the new regulations. Brokerages and FX providers are sending the survey to their clients as these firms seek to gather the opinion of as many stakeholders as possible.

According to the landing page on the survey, Deloitte is helping clients in the CFD industry in Australia to gather responses to ASIC. The questions in the survey seek to gather thoughts on the proposed intervention by the regulatory body in the markets for CFD, over the counter, and binary options.

The questions in the survey come in the form of a multiple-choice questionnaire asking IBs and traders to provide information about how long they have been trading, the level of leverage they opt for most of the time, and their level of expertise. The survey goes on to ask the trader about how they would react to the caps if they are implemented, how it would affect the size of their trades, if they would change their trading habits, if they would switch to a broker that offers higher leverage, and if they would change the number of trades they execute.

Traders are also asked what they would do if the regulator introduces negative balance protection. Another question asks at what level traders think margin close out protection for traders should apply. Respondents are then asked to state their annual income bracket.

Deloitte says that the information collected from respondents will be used to compile a report which will accompany the firm’s submission to ASIC. The firm will submit a response to the regulator on the possible impact of the proposed regulations that will apply to retail clients.