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Logo of Phnom Penh Post newspaper Phnom Penh Post - New firm seeks to enter gold trading

Traffic passes the Securities and Exchange Commission of Cambodia in Phnom Penh’s Sen Sok district in 2014.
Traffic passes the Securities and Exchange Commission of Cambodia in Phnom Penh’s Sen Sok district in 2014. Hong Menea

New firm seeks to enter gold trading

Golden FX Link (Cambodia) has joined in the running to become a legally licensed firm to trade derivatives. With a registered capital of $5 million, Lawrence Kook, Director of Golden FX Link, said that the company received a license in principle from the Securities and Exchange Commission of Cambodia (SECC).

“There is a great potential to build up Cambodia’s financial markets, and improve the standards and quality of trading,” he said. The firm will focus on the global foreign currency (forex) markets, as well as trading gold, silver and oil.

According to Kook, the newly established Cambodian company has formed a cooperation agreement with First Asia Merchants Bullion Limited – a Hong-Kong-based risk management firm.

While he said that his company is part of a worldwide derivatives network that operates close to 28,000 branches across the world, he admitted that not all of them have been successful.

Beyond trading derivatives, the company is offering physical investments in gold coins. “Clients can make earnings from trading gold online or from buying coins,” he said.

Sok Dara, deputy director-general at the SECC, confirmed that the company had been given approval, but had yet to meet the minimum requirements.

“Since we have given them a license in principal they can see which products are most suitable for the Cambodian market. But before they can begin trading we need to check their product proposals,” he said.

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Comments

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Don Rennie's picture

Dear Sokhorng and Kali,

This is a ridiculous and stupid idea. Derivatives are deadly investments. Trading gold is different.

Look at near term history. If you do not know history, you are condemned to repeat it.

First, look at Orange County, California's bankruptcy in late 1994 (http://www.bloomberg.com/news/articles/1994-12-18/today-orange-county-do...)

Then, look at Long Term Capital's failure in 1998 (http://www.businessinsider.com/the-fall-of-long-term-capital-management-...).

Then look at the following article: (http://www.ft.com/cms/s/0/34f63248-da0c-11e5-98fd-06d75973fe09.html#axzz...).

These institutions noted above failed because of derivative trading issues. Derivatives are dangerous and deadly investments and really have no business being licensed for trading in Cambodia.

DR

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