SERC director-general Socheat addresses the signing ceremony of a new cooperation agreement between SERC and the IFC. Hin Pisei
The Cambodian securities market is expected to advance even faster, thanks to a new cooperation agreement between the Securities and Exchange Regulator of Cambodia (SERC) and the International Finance Corporation (IFC).
The two sides plan to jointly build a more robust market ecosystem and ensure sustainable growth, explained Sou Socheat, director-general of SERC.
Socheat and Tom Ceusters, director of Capital Markets and Investment at the IFC, signed the capacity building agreement at a January 22 ceremony, held at Phnom Penh’s Raffles Le Royal Hotel.
The SERC director-general noted that the collaboration comes at an important time, as the derivatives market in Cambodia has great potential to contribute to the country’s financial growth.
He explained that providing innovative financial instruments for risk management and investment activities will strengthen Cambodia’s financial market and play a key role in national economic development.
“Derivative markets play an integral role in modern finance, facilitating price discovery and enabling market participants to manage their risks effectively. That is why it is one of our priorities,” he said.
“This agreement outlines a comprehensive plan to ensure sustainable growth. This initiative aligns with Cambodia’s goal of becoming a competitive and trusted player in the global financial ecosystem,” he added.
Socheat also emphasised that moving forward requires careful planning, a strong framework and capacity building.
According to the agreement, the IFC will continue to support capacity building, providing the necessary expertise in the derivatives market, and strengthening Cambodia's legal and financial frameworks to comply with international standards. The agreement also sets milestones for the derivatives market, contributing to the Kingdom’s financial stability and broader economic goals of promoting innovation, transparency and resilience in the market.
“This inclusivity not only fosters financial literacy but also promotes economic empowerment and prosperity for all,” added Socheat.
According to SERC, derivatives trading process began in 2017, with the trading volume at that time approximately $4 million. By 2023, the volume had increased to $300 million.
The derivatives market is divided into six categories, with more than 249 products. The six types of derivatives include Forex (currency trading), futures contracts on precious metals, crude oil futures contracts, commodity futures contracts, index futures contracts and equity option contracts.
