Macquarie Bank is considering offering in the coming months leveraged contracts for difference in the Australian market for its retail client base. "We're evaluating this closely at the moment," said Greg MacKay, head of equity derivatives at Macquarie in Sydney. MacKay explained that the CFDs, which provide the economic benefits of underlying stocks, have been popular in the U.K. and were introduced in the Australian market last year. "It's still relatively new in Australia," he added, noting that it has taken several months of educating clients for the product to gain interest down under.
McKay said the bank is in the middle of a strategic review process and should know in the coming weeks if it plans to forge ahead and bring the product to its customers. "We're assessing client demand," he added.
McKay explained that CFDs are similar to equity-swaps but require a cash deposit and a margin is maintained as in a futures contract.
