Multi-asset brokerage OANDA has found itself facing a number of new regulatory changes across multiple jurisdictions, with the latest alterations coming in Australia, with the country’s Federal government moving forward with a new law on foreign Exchange (FX) and contracts-for-difference (CFD) providers.
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The Australian government recently embarked on a regulatory initiative that supported the segregation of client funds amongst FX and CFD providers. The announcement comes the same week that saw the UK and its Financial Conduct Authority (FCA) institute a wide range of changes to its leverage requirements.
Minimal Changes Needed
In both instances, OANDA has supported the measures of each respective regulator, with the new mandates largely falling in line with its current practices. For example, 75% of trading done via OANDA’s European subsidiary based in London, OANDA Europe, has been transacted by clients that use 1:50 or lower Leverage .
OANDA’s endorsement of the new measures in Australia also coincide with its membership of the CFD Forum, which acts as an industry body dedicated to enhancing the efficient operation, transparency, and overall investor understanding and confidence in the Australian CFD market.
Stephen Andrews
According to Stephen Andrews, Managing Director at OANDA Australia, in a recent statement on the regulations: “We fully support the government’s move to introduce the mandatory segregation of client funds. This new law will bring Australia in line with other international markets that ensure client funds are protected and secure.”
“We welcome this legislation as it will not only safeguard investors but it will also ensure that Australian FX and CFD markets are underpinned by a strong regulatory framework,” he added.
