Logo of Phnom Penh Post newspaper Phnom Penh Post - Regulator halts trading

Regulator halts trading

Regulator halts trading

FIVE domestic firms trading in derivatives have been ordered to suspend their operations by the Securities and Exchange Commission of Cambodia.

SECC director general Ming Bankosal said Cambodian firms offering derivatives trading had operated without the necessary regulatory framework being in place.

The SECC was cooperating with the firms to prepare the necessary regulations, but the emphasis for the regulatory body was currently on launching the Cambodia Securities Exchange, which is slated for July, he said yesterday.

“We had not prepared any regulations or rules to manage them [firms trading in derivatives],” he said.

“It is not the priority for us – we want the public to understand the stock exchange first, then we will think about preparation of regulations for derivative products.”

In an announcement dated March 1 and obtained yesterday, the SECC ordered five companies to halt operations. They were named as Gold Financial Global, First State Gold Investment Company, Global Gold and Forex Investment Consultant Company, CMDK Gold Company, and International Gold Market Company.

Although the SECC did not define what it considered a derivative product, the Korea Exchange – which is a 45 percent stakeholder in Cambodia’s planned bourse – said it considered a derivative to be a financial instrument that derives its value from other underlying assets, in a presentation given to Cambodian experts in December.

Such assets include contracts for commodities such as gold and oil. Examples of derivatives include options and futures.

Representatives from some of the affected firms told The Post they were complying with the SECC’s announcement yesterday.

Gold Financial Global administrative and human resource supervisor Sales Sovanna said the company had changed its business model since receiving a warning about the impending move from the SECC late last year.

“We have delayed our business, and changed [it] to offer financial sector training courses to the public to assist them with understanding the industry,” he said yesterday.

The firm had previously specialised online trading of foreign exchange currencies, spot metals, and crude oil, according to its website.

An official at Global Gold and Forex Investment, speaking on the condition of anonymity, said the firm had suspended operations following notice from the SECC.

“We postponed our operation after receiving information from them [the SECC] in January,” the official said.

“The SECC told us we can restart operations following the launch of the Cambodia Securities Exchange. Now, we do nothing – we’re just waiting for an announcement from the SECC to restart our operations.”

MOST VIEWED

  • 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

  • Vietnamese workers in Koh Kong questioned

    The General Department of Immigration (GDI) is questioning 49 Vietnamese nationals who were working illegally in Koh Kong province to build a case and send them back to Vietnam, its Department of Investigation and Procedure director Kem Sarin said on Thursday. GDI forces and provincial authorities

  • Preah Vihear court drops charges against villagers

    The Preah Vihear Provincial Court has dropped all charges against eight ethnic Kuoy villagers who were in a land dispute with the Hengfu Group Sugar Industry Co Ltd since 2014. Wednesday’s decision was made by the judge who tried the case on June 10. The eight

  • Gov’t to boost Siem Reap tourism

    The Ministry of Tourism released the results of an inter-ministerial committee meeting concerning Siem Reap province’s Tourism Development Master Plan for 2020-2035 on Wednesday, revealing the government’s plan to improve the overall tourist landscape there. The meeting was attended by Minister of Tourism

  • Residents ordered to remove structures on Phnom Penh’s canal

    Phnom Penh municipal governor Khuong Sreng has ordered authorities to act against the perpetrators who built houses along the Luo 5 canal in Meanchey district. The municipal administration plans to create a committee to solve the matter. The order was given on Wednesday while Sreng led

  • ‘On the offensive’: Cambodia to load up on loans to stimulate economy

    As the dust settles on the economy, Cambodia comes to grips with what needs to be done to turn the economy around, starting with a big shopping list for credit ‘We are going on the offensive,” Vongsey Vissoth, Ministry of Economy and Finance permanent secretary

  • Eighty replacement peacekeepers set for Mali mission despite Covid

    Eighty Cambodian blue helmet soldiers who completed the peacekeeping mission under the UN umbrella in Mali will return to Cambodia on Friday, said the Centre for Peacekeeping Forces spokeswoman Kosal Malida. “To protect their families and communities from the Covid-19 pandemic, the 80 are required to