We commend ASIC’s decision to intervene in
the market for binary options and Contracts For Difference (CFD) in the manner proposed in the draft
instruments. Over The Counter (OTC) binary options and CFDs are designed to lose consumers
money. They are precisely the kind of poor value financial products that should be the subject to market
wide product interventions.
The consultation paper provides a solid evidence base of escalating consumer detriment. That the
detriment remains ongoing, despite the use of multiple other regulatory levers, is clear grounds for use
of the new product intervention power.
