warning to all cfd: margin traders, page-23

The financial market implications of this could be devastating.

If CFD providers are forced to liquidate, it will affect all shares since companies tradeable on CFD platforms will be sold first, then burnt investors will sell other listed companies/assets to generate their own personal liquidity.

We have all seen there are some quality shares trading at ridiculous levels because of the Opes Prime fiasco. This does not represent a true market (but a market EFFECT to Opes Prime).

What I would like to see:

1). Continual disclosure from all CFD providers on financing activities.

2). Remove the live feed into the ASX platform from the CFD provider.

3). If the CFD providers wish to have a company tradeable on their CFD platforms, it should pay a hefty annual fee to that particular company for that privilege.ie if I was a company director I would not want it tradeable on CFD's if it had a comparatively smaller shareholder list.

4). Daily and continual disclosure on all current holdings (both short and long) by CFD providers.

5). Take out the credit card depositing options from depositing cash into their accounts.

6). Increase LVR requirements.

7). Have CFD board members under the eye of ASIC reps to constantly view and manage risk.



All this would add to keeping a fairer market value as possible of listed companies imo.

At the moment Opes Prime have proven this type of business model is a catastrophe in the making. One wrong move by one director can wipe out people's life savings and cause reputable listed companies to "appear" misleading.