A new agreement signed Friday between the market regulator and a derivate brokerage firm aims to promote growth in the local stock market, which now has just five listed companies.
The Securities Exchange Commission of Cambodia (SECC) and Golden Fortune, a licensed brokerage firm, signed the memorandum of understanding last week to promote the development of the stock market and contribute to the implementation of government policies that will reduce the risk posed by fluctuations in the price of agricultural commodities, according to the press release.
The agreement also aims to “increase exports, attract foreign investment, as well as to promote the standard and quality of Cambodian products for the economic development of Cambodia.”
Sou Socheat, SECC’s director general, said at a workshop in April that the derivative trading sector has improved notably since its launch two years ago.
SECC now has the authority to regulate central counterparty clearing house (CCPs) and derivative brokers, he said, adding that derivative trading in the kingdom continues to mature as traders become more acquainted with the market.
“The attitude of traders has changed remarkably with regards to risk and to the legal framework,” Mr Socheat said. “Before they didn’t understand the market well, but this has changed. They now know what the risks are and how to manage them.”
