May 31, 2008
The emergence of exchange traded CFD’s
In Australia the popularity of CFD’s have become apparent over the last few years as the number of CFD providers has grown exponentially. This is partly due to the fact that the Australian market does not have the range of futures markets that are available in the US. A new initiative that has been introduced recently is exchange traded CFD’s. These are based on the over the counter model but are traded on the ASX exchange itself as opposed to utilizing a market maker. This has created greater transparency and resulted in these products being regulated by the exchange. This is another great investment tool at the disposal of traders and investors.