Tie-up seen boosting derivatives
CAMBODIA’S central counterparty firm, Derivatives Exchange (CDX), has announced its cooperation with Indonesia-based Jakarta Futures Exchange (JFX) and expressed hope that the move would boost growth in the country’s derivatives trading market.
Signed in Phnom Penh, the agreement was facilitated by the Securities and Exchange Commission of Cambodia (SECC).
SECC director-general Sou Socheat said since its launching three years ago, Cambodia’s derivatives market is showing of progress.
“After launching the market in 2015, we are seeing noteworthy improvement as the sector gets more awareness and confidence,” he said.
Derivatives trading consists of two main entities, a brokerage firm and central counterparty that acts as a clearing house.
Cambodia’s capital market regulator announced late last year that it would suspend the issuance of new central counterparty licences to derivatives trading firms, claiming capping the market at four was sufficient in serving current demand.
The SECC has, to date, granted licences to four central counterparty companies and 14 derivatives brokers. According to Socheat, however, currently, more than 10 brokerage firms applying for derivatives trading licences.
