August 2020
AAM Magazine
August 2020
Back to news

Cambodia regulator eases derivatives rules for brokers, report says

By Asia Asset Management  
May 21, 2020

Cambodia’s securities regulator has relaxed licensing requirements for derivatives brokers, including lower capital requirements, in order to boost investor interest, according to a local English language daily.

The Securities and Exchange Commission of Cambodia (SECC) has approved an amendment to its derivatives rules to pave the way for the change, The Phnom Penh Post says in a report on May 19, quoting Sou Socheat, director-general of the regulator.

“The amendment will reduce the requirements on licensing and the minimum capital needed for derivative brokers,” he says.

According to Mr. Socheat, the easier rules are aimed at “boosting investor interest in derivative trading after it gained traction last year”.

The report did not specify the exact changes, and spokespersons for the SECC did not immediately respond to questions from Asia Asset Management.

The easing of rules comes as Cambodia moves to grow its derivatives market. Last month, the SECC gave approval in principle to three brokerages – Commo T Co Ltd, STMarket Co Ltd and Universal Derivatives Exchange Co Ltd.

Earlier this year, Mr. Socheat urged Cambodians to add derivatives to their investment portfolios as it could benefit them in the long run, The Phnom Penh Post reported in January.

“To increase public awareness of the sector, we have conducted 56 training programmes for potential issuers, investors and market professionals in 15 provinces with 5,662 participants,” he is quoted as saying in the January 6 report.

According to the SECC’s website, trading of derivatives in Cambodia more than doubled to US$200 million last year from $84 million in 2018.