Not all activity in financial markets is investment related. Some product and service providers and traders seek to profit from their view on the short-term price direction of particular underlying assets, such as foreign exchange, indices, share prices, commodity prices, interest rates, and more recently, cryptocurrencies.
Catering to these audiences are instruments like margin fx, contracts for difference (CFDs) and binary options. While such products facilitate traders profiting from their bets on price movements, they are not without risks — with massive losses incurred by retail traders in particular not escaping the scrutiny and dramatic responses of regulators internationally.
Following a recap of financial services regulation in Australia, we explore rules specific to retail OTC derivatives, comparing ASIC’s stance to those of global peers to ascertain how the near-term regulatory climate is shaping up.
In this course you will learn to:
- explain how the financial services industry is regulated in Australia
- identify the instruments, providers and trader types that comprise the retail OTC derivatives sector
- outline the primary laws and regulatory requirements that apply to the offering and trading of retail OTC derivatives
- discuss how ASIC has applied various regulatory tools in its enforcement of retail OTC derivatives conduct obligations
- compare how retail OTC derivatives are regulated in Australia with rules and obligations that apply in other major financial markets overseas.
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Each CPD course has specific learning outcomes, reflections and extra resources and activities, and is assessed via a short online multiple choice quiz. You have 8 weeks to complete the course.