Contracts-for-difference market makers have defended their industry despite allegations Hanlong Mining executives used CFDs to profit from the company’s bid for Sundance Resources and Bannerman Resources .

The Australian Securities and Investments Commission has accused Hanlong Mining managing director Steven Hui Xiao of making $720,000 by trading CFDs with inside information, while it said vice-president Calvin Zhu, employee Fan Zhang and two others were also trading CFDs in the lead-up to Hanlong’s bids for the two companies.