Logo of Phnom Penh Post newspaper Phnom Penh Post - Derivative brokerage firm starts gold trading

Derivative brokerage firm starts gold trading

Derivative brokerage firm starts gold trading

Alpha Gold Futures, a new local derivative brokerage firm, officially launched operations yesterday, joining in on Cambodia’s young but growing regulated derivative trading market after it received a licence late last month.

Speaking at the launch ceremony for the company, Keo Maly, director of Alpha Gold Futures, said that the company would first offer services to execute buy and sell orders for gold, as well as a mixed bag of foreign currencies. The company plans to expand operations in the future to the buying and selling of oil derivatives and other global commodities.

“By investing in Alpha Gold Futures, we guarantee that your investment is carefully and clearly managed by our professional team,” Maly said.

Derivative trading consists of two main entities that include a brokerage firm and central counterparty that acts as a clearing house.

According to regulations set by the Securities and Exchange Commission of Cambodia (SECC) in late 2015, a brokerage firm must meet a minimum capital requirement of $250,000 while a central counterparty must have $5 million.

Sou Socheat, director of SECC, said yesterday that since the market became regulated, there are now more than 10 licensed derivative brokerage firms. In March of this year, the SECC capped the number of central counterparty licences at four, citing adequate demand.

While Socheat declined to disclose the number of registered derivative trading accounts, he said that the popularity of the risky financial instrument was increasing.

“The growth in the number of traders reflects that there is increased confidence in this new market,” he said.

MOST VIEWED

  • Cambodia rejects UN rights claim

    Cambodia's Permanent Mission to the UN Office in Geneva on Friday hit back at David Kaye, the UN special rapporteur on the Promotion and Protection of the Right to Freedom of Opinion and Expression after he raised concerns over the repression of free speech and

  • Snaring may spawn diseases

    The World Wildlife Fund (WWF) has warned that snaring of animals has become a crisis that poses a serious risk to wildlife in Southeast Asia and could spawn the transmission of zoonotic diseases to humans. Its July 9 report entitled Silence of the Snares: Southeast Asia’

  • Ex-party leader, gov’t critic named as secretary of state

    A former political party leader known for being critical of the government has been appointed secretary of state at the Ministry of Rural Development, a royal decree dated July 9 said. Sourn Serey Ratha, the former president of the Khmer Power Party (KPP), told The Post

  • Residence cards set for over 80,000 immigrants

    The Ministry of Interior plans to grant residence cards to more than 80,000 immigrants to better keep track of them. The ministry announced the plan on July 10, following the results of an immigration census. “An inter-ministerial committee and many operational working groups have been set up

  • Kingdom produces PPE gear

    Medical supplies from Cambodia have been donated to member countries of the Asian Development Bank (ADB) to assist in the fight against Covid-19, said an ADB report published on July 9. The report stated that the supplies were donated as a response to global efforts to

  • Kingdom, US vow stronger ties

    At an academic forum on Saturday to celebrate 70 years of Cambodia-US diplomatic ties, Cambodian researchers and officials expressed hope of encouraging US investments and for that country to deepen and improve its bilateral relations. Held at the Royal Academy of Cambodia, it reviewed the past 70

  • Fifteen Cambodians from Saudi get Covid-19

    The Ministry of Health on Sunday confirmed 15 more imported cases of Covid. The 15 men ‒ all Cambodian aged 21 to 33 ‒ arrived from Saudi Arabia on Friday via a connecting flight in Malaysia. They were travelling with 79 other passengers, three of them women. The ministry said 80 of the

  • Ministry requests school opening

    The Ministry of Education, Youth and Sport on Thursday said it would request a decision from Prime Minister Hun Sen to allow a small number of schools to reopen next month. Ministry spokesman Ros Soveacha said if the request is granted, higher-standard schools will reopen

  • Kingdom eyes India FTA, China deal set for August

    Cambodia is studying the possibility of establishing a bilateral free trade agreement (FTA) with India to open a new market with the second-largest regional economy. This comes as an FTA with China is scheduled to be signed next month while similar negotiations with South Korea

  • Judge lands in court after crashing into alleged thief

    Sen Sok district police on Thursday sent a Koh Kong Provincial Court judge to the Phnom Penh Municipal Court on manslaughter charges after he crashed his car into a woman riding a motorbike on Wednesday, killing her. District police chief Hour Meng Vang told The