Logo of Phnom Penh Post newspaper Phnom Penh Post - Indonesia exchange links up with CDX

Indonesia exchange links up with CDX

Content image - Phnom Penh Post
Memorandum of Understanding between Derivatives Exchange (CDX) with Indonesia-based Jakarta Futures Exchange (JFX) was signed in Phnom Penh on Friday. Hin Pisei

Indonesia exchange links up with CDX

CAMBODIA’S central counterparty firm, Derivatives Exchange (CDX), announced their cooperation with Indonesia-based Jakarta Futures Exchange (JFX) on Friday and expressed hope that the move would boost growth in the Kingdom’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 licenses.

“The rapid growth of brokers [in this sector] is now showing the potentail of the derivatives market in Cambodia,” he said.

Under the SECC’s minimum capital requirements, central counterparties are required to put down at least $5 million, while brokerage firms must put down $250,000.

Sammy So, CEO of Cambodian Derivatives Exchange Co Ltd, said that the cooperation between the two companies would boost the derivatives market in Cambodia.

“Through this deal, CDX will be able to receive advanced technologies in order to contribute to bring in more progress,” he said.

JFX is a central counterparty firm with more than 20 years in Indonesia’s derivatives trading market.

Stephanus Paulus Lumintang, director of JFX, said the Kingdom’s derivatives market is now showing progress that will encourage more active trading.

“This cooperation has created another key for the financial sector and will lay a solid foundation for accelerating markets in Cambodia,” he said.

MOST VIEWED

  • Chinese influx pushing locals, Westerners out of Preah Sihanouk

    Some within the Kingdom’s tourism industry have speculated that the recent influx of Chinese visitors may hinder domestic tourism as the price of accommodations in the coastal city of Sihanoukville continues to rise. Preah Sihanouk province, which has become a hotbed for Chinese investment

  • ‘Dire consequences’ from sanctions, warns AmCham

    American businesspeople in Cambodia have warned that any sanction against the Kingdom would have “dire consequences” that could push Cambodia even further into the arms of China. In a letter to US senators and representatives dated Monday, the American Chamber of Commerce Cambodia (AmCham) said

  • CPP: ‘Behave or Sokha suffers’

    The ruling Cambodian People’s Party (CPP) spokesman warned Kem Monovithya on Thursday that her attempt to damage “national reputation and prestige” would lead to her father, Kem Sokha, receiving even harsher punishment. Sok Eysan issued the warning as Monovithya, who is the court dissolved

  • Preah Sihanouk beach developments halted

    After receiving an order from Hun Sen, Minister of Land Management Chea Sophara led a team of experts and relevant officials to Sihanoukville to call a halt to the illegal development of a beach. The prime minister ordered the Prek Treng beach in Otres commune