Logo of Phnom Penh Post newspaper Phnom Penh Post - SECC eases derivative regulation

SECC eases derivative regulation

Content image - Phnom Penh Post
SECC director-general Sou Socheat (pictured) told The Post on Monday that the amendment will reduce the requirements on licensing and the minimum capital needed for brokers. Supplied

SECC eases derivative regulation

The Securities and Exchange Commission of Cambodia (SECC) has approved an amendment which will make it easier for derivative brokers to receive licences.

The relaxation of requirements for the derivatives market aims to boost investor interest in it after it gained traction in recent years.

According to an SECC announcement on May 11, the amendment will make the process of applying for an SECC licence more efficient for derivative brokers.

“The Securities and Exchange Commission of Cambodia would like to inform the directors of derivative brokers and the public that the SECC approved Prakas No 005/20 dated May 5, 2020, which amends Prakas No 004/15 dated July 2, 2015 on the licensing of derivative brokers,” said the announcement.

SECC director-general Sou Socheat told The Post on Monday that the amendment will reduce the requirements on licensing and the minimum capital needed for brokers.

Socheat said: “As the market starts to grow, we request more human resources and experienced professionals. Some of the requirements we made were for the protection of the investor.”

Socheat previously explained to The Post that the derivatives market offers new financial products on the Cambodia Securities Exchange – the national stock exchange – that can benefit investors in the long run.

However, he said that before someone makes an investment decision, they should be aware of the details.

Derivatives are financial securities tied to underlying assets. Common assets include commodities, currencies, stocks and bonds. An investor can purchase contracts and their return is based on the market fluctuations of the asset.

The trading volume of derivatives in Cambodia increased from $84 million in 2018 to $200 million last year, SECC data shows.

The derivatives market currently boasts five central counterparties, 27 derivative brokers, five fund management companies and five trustees.

MOST VIEWED

  • Public warned of dengue risks amid rainy season

    Minister of Health Mam Bun Heng has issued an eight-point plan to destroy mosquitoes carrying dengue fever amid the rainy season. In a four-page directive, Bun Heng warned that while the number of dengue cases has dropped sharply compared to last year, it could increase

  • Thirteen charged in UK migrant lorry tragedy

    Thirteen suspects arrested by French police over the deaths of 39 Vietnamese migrants in a refrigerated lorry in Britain have been charged with people trafficking, a judicial source said on Saturday. Six of the group – mainly Vietnamese and French nationals – were held on Tuesday in the

  • Cambodian Blue Helmet dies of virus

    The last rites for Cambodian Blue Helmet peacekeeper Sar Savy, who died on Friday at 63 from Covid-19 while on a mission in the Republic of Mali, will be held on Wednesday and Thursday at the UN base there. Cambodia’s National Centre for Peacekeeping Forces

  • World Bank donates $15 million in aid

    The World Bank on Friday approved $15 million for a medical training system to help Cambodia equip doctors with more skills before they start work. The budget, which was granted by the International Development Association (IDA), is intended to improve health care services. The World Bank

  • Ministry signs MoU to develop ICT training

    The Ministry of Education, Youth and Sport on Friday signed a Memorandum of Understanding (MoU) with IT Academy STEP Cambodia (STEP) to further develop the Sisters of Code project. The project trains female students in computer programming, and enhances information and communication technology (ICT) textbooks

  • Masseuse caught planting fake bills

    Four suspects were sent to Phnom Penh Municipal Court on Sunday for allegedly stealing money from a customer who had visited their massage parlour for a cupping session last Friday in Anlong Kgnan village, in Sen Sok district’s Khmuonh commune. District police chief Hour