ASIC Design & Distribution Obligations (DDO) — RG 274
Target Market Determination
Issued by Global Markets Pty Ltd · AFSL · Effective: 1 March 2025 · Review Date: 1 March 2026
This Target Market Determination (TMD) is required under the Design and Distribution Obligations (DDO) regime (RG 274). It describes the class of retail clients for whom this product is likely to be appropriate, and is not a personal recommendation.
1. Overview
Issuer
Global Markets Pty Ltd
AFSL
Available on request
Product Type
OTC CFD (Contracts for Difference)
DDO Obligation
Design & Distribution Obligations (RG 274)
Effective Date
1 March 2025
Review Date
1 March 2026
2. Product Description
Global Markets offers Contracts for Difference (CFDs) — leveraged derivative products that allow clients to speculate on price movements of underlying assets including forex currency pairs, commodities, stock indices, and cryptocurrencies, without owning the underlying asset.
CFDs carry a high risk of loss due to leverage and are not appropriate for all investors. ASIC product intervention orders (CO 21-000) impose maximum leverage limits:
Asset Class
Max Leverage
Major Forex (EUR/USD, GBP/USD, etc.)
30:1
Minor Forex / Gold / Major Indices
20:1
Commodities / Minor Indices
10:1
Individual Equities
5:1
Crypto (BTC, ETH, etc.)
2:1
3. Target Market
Based on the product's features, risks, and objectives, this product is likely to be consistent with the likely objectives, financial situation, and needs of the following class of retail clients:
Financial Situation
Has disposable income beyond essential living expenses that can be risked without materially impacting lifestyle
Can sustain a complete loss of all invested funds without material financial hardship
Liquid net worth sufficient to cover margin requirements and potential adverse movements
Not reliant on trading income as primary source of income or livelihood
Knowledge & Experience
Understands how CFDs and leveraged products work, including the amplified risk of losses
Has prior experience trading financial products (shares, ETFs, forex, or similar)
Understands margin requirements, margin calls, and liquidation risk
Familiar with order types: market, limit, stop-loss, and take-profit
Has read and understood this TMD and the Product Disclosure Statement (PDS)
Investment Objectives & Needs
Seeks short-to-medium term speculative trading opportunities
Accepts high risk in pursuit of potentially higher returns
May use CFDs as a hedging tool for existing portfolio exposures
Seeks access to global financial markets including forex, commodities, and indices
4. Who This Product Is NOT Appropriate For
This product is likely to be inconsistent with the needs and objectives of the following retail clients:
Clients who cannot afford to lose all funds invested
Clients seeking capital preservation or low-risk investment returns
Clients with limited or no experience with leveraged financial products
Clients who do not understand leverage, margin calls, or CFD mechanics
Clients who do not have sufficient disposable income beyond living expenses
Clients trading with borrowed funds (e.g., credit cards, personal loans)
Clients who require guaranteed or stable income from investments
Clients who are susceptible to problem gambling or financial impulsivity
Minors (persons under 18 years of age)
Clients in jurisdictions where CFD trading is prohibited or restricted
5. Distribution Conditions
Global Markets will only distribute this product to retail clients who:
Appropriateness Assessment — Have completed and passed our online suitability/appropriateness test demonstrating sufficient knowledge of leveraged products and CFDs.
Identity Verification (KYC) — Have successfully completed Know Your Customer (KYC) verification including proof of identity, proof of address, and proof of income.
Risk Acknowledgement — Have read and acknowledged the Product Disclosure Statement (PDS) and this TMD, including the 74% loss rate statistic.
Negative Balance Protection — Are classified as retail clients and therefore receive ASIC-mandated negative balance protection by default.
Jurisdiction — Are located in Australia or other jurisdictions where Global Markets is authorised to provide services.
6. Review Triggers
This TMD will be reviewed at the Review Date (annually) or earlier if any of the following trigger events occur:
A material change is made to the product features, costs, or leverage limits
ASIC issues guidance or directions that affect this product category
A significant increase in client complaints or dispute referrals to AFCA
Evidence emerges that the product is being distributed outside the target market
A regulatory review, investigation, or market review by ASIC is initiated
The proportion of clients experiencing losses materially exceeds 74%
A change in applicable legislation, regulation, or ASIC product intervention orders
7. Reporting Obligations
Distributors of Global Markets products must report to Global Markets within 10 business days if they become aware of:
A significant dealing that is inconsistent with this TMD
A complaint from a client that is materially related to the product design or target market
Any event or circumstance that suggests the product may be reaching clients outside the target market
Global Markets will report material complaints and dealings inconsistent with this TMD to ASIC as required under the Design and Distribution Obligations (DDO) framework.