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Trading fees too high, says broker

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Morten Kvammem of Cambodia Capital wants to see more companies lining up to list on the new exchange. Photo by: DON WEINLAND

With lower costs, the push is on to get more companies to take the bold step to list

THE managing partner in one of the brokerage firms poised to trade on the new CSX, Morten Kvammen of Cambodia Capital, says the CSX’s trading fees should be lower in order to keep the exchange from being too expensive.

“It could potentially become a very expensive market to trade, and that’s something that could maybe chase some investors away,” he said.

Kvammen has been a steady supporter of CSX development, steadfast in his belief of Cambodia’s underlying value. He says he’s hoping more private sector firms, like telecommunication companies, will come forward to list their companies.

More important than fees, however, are more companies coming forward to list, he said.

“Fees are not the only issue. Fees are a side issue. The main thing is going to be getting enough quality companies to list. That’s the main thing.”

Kvammen would like to see more private sector companies on the CSX.

“We would love to see quality companies come to list. There’s a potential for ACLEDA Bank to list, some of the other banks to list, some of the mobile operators, some of the consumer goods companies,” Kvammen said.

“Some of the mobile operators have great brand names, very well-known local brands. When you list you give retail investors a chance to invest in those companies.”

Kvammen said four government companies were being considered for listing, with three having been already announced: Phnom Penh Water, Telecom Cambodia and Sihanoukville Port.

“We have a list of six to 10 companies that could potentially list – and you don’t need to list them right away. I wish that some of these companies would be more aggressive about listing,” he said.

Kvammen said the important things about the CSX opening ceremony was the indication that the exchange was ready to begin operations – and the start of work to get the CSX systems integrated with brokers.

“There’s a bunch of work that still needs to happen with respect to operational issues for brokers, integrations with systems, understanding the process for placing and settling trades. All of this still needs to happen,” he said.

“Whenever trading starts – this kick-starts the race to the finish line.”

Kvammen said he was encouraged by the people who showed up for the CSX’s opening event.  

In addition to investors like VinaCapital and Blackstone coming to attend, global media were also present.  

“This is being picked up in media around the world. There was an article in The New York Times and there was a story on the BBC. The fact that these guys are here from most regional media shows that there’s quite a positive buzz around the exchange,” Kvammen said.

As far as his CSX wish list, Kvammen says he wants more information about the “practicalities of trading”.He added his number one wish was for the CSX transaction fees to be reduced.

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