Logo of Phnom Penh Post newspaper Phnom Penh Post - SECC calling for more investment in derivatives

SECC calling for more investment in derivatives

Content image - Phnom Penh Post
The Securities and Exchange Commission of Cambodia (SECC) director-general Sou Socheat. Heng Chivoan

SECC calling for more investment in derivatives

The Securities Exchange Commission of Cambodia (SECC) urged the public to add derivatives to their portfolio, as it could “benefit investors in the long run”.

Derivatives derive their value from the performance of an underlying asset such as a commodity, currency or stock.

But they are also used for speculation, leading some to charge that derivatives are akin to gambling, even though the underlying assets mitigate risk and price volatility for active investors.

Securities and Exchange Commission of Cambodia (SECC) director-general Sou Socheat said: “At the same time, investors must also be informed about the company [they are investing in] to avoid doing so in unlicensed ones.”

Derivatives, he said, were “new products available on the Cambodia Securities Exchange that could benefit investors in the long run”.

“To increase public awareness of the sector, we conducted 56 training programmes for potential issuers, investors and market professionals in 15 provinces with 5,662 participants.

“We increased international cooperation with regional and global market regulators by signing MoUs with Korea, China, Myanmar, Thailand, Vietnam, etc,” Socheat said.

He also stressed that unlicensed companies must inform investors of the accompanying risks that come with the prospect of long-term values to gain investor confidence and attract them to the market.

Derivative trading volumes rose from $84 million in 2018 to $120 million last year, according to SECC data.

Last year also saw a substantial increase in market participants such as five central counterparties for the derivatives market, 27 new derivatives brokers, five fund management firms and five trustees already licensed by the SECC.

MOST VIEWED

  • Cambodia armed with money laundering laws

    Money laundering will now carry a penalty of up to five years in prison while those convicted of financing terrorists will be jailed for up to 20 years, according to new laws promulgated by King Norodom Sihamoni and seen by The Post on Thursday. Comprising nine

  • Schools to be reopened in ‘three stages’

    With guidance from Prime Minister Hun Sen, the Ministry of Education, Youth and Sport, is in the process of reopening schools in three stages. But no timeline has been set, ministry spokesperson Ros Soveacha said on Thursday. Soveacha said the first stage will be to

  • Thai border crossings eased

    The Cambodian Embassy in Thailand said in an announcement on Wednesday that Thailand’s government has allowed certain passengers from several countries to enter its borders. The visitors must go back to their country immediately after their duties in Thailand are fulfilled, the embassy said.

  • Gov’t says tourism recovers slightly despite pandemic

    The Ministry of Tourism and the Phnom Penh municipal administration have recognised 33 tourism businesses in the capital which have consistently implemented safety measures for tourists and adhered to the code of conduct issued by the ministry. Recently, the ministry announced that tourism businesses had to

  • Mull ASEAN border opening, PM urges

    Prime Minister Hun Sen has requested that ASEAN launch a scenario for gradually reopening cross-border travel and trade between countries in the region. He said ASEAN has had more success combating Covid-19 compared to other regions. The prime minister’s request was made at the

  • Ministry reports 11 new Covid-19 cases, reiterates vigilance

    Minister of Health Mam Bun Heng has urged people to continue practising virus prevention techniques after 11 people tested positive for Covid-19 within two days after arriving in the Kingdom. Speaking on Sunday, Bun Heng stressed the importance of washing hands, wearing masks or scarves when

  • Nine on Indonesia flight Covid-19 positive

    The Ministry of Health on Saturday confirmed nine more imported cases of Covid-19. The nine ‒ eight Cambodians and one Indonesian, aged 22 to 26 ‒ arrived in Cambodia on Thursday via a direct flight from Indonesia and are receiving treatment at the Khmer-Soviet Friendship Hostipal in Phnom Penh.

  • Kingdom’s financial sector healthy

    Cambodia's financial sector remains on a sustainable growth path despite the Covid-19 pandemic squeezing crucial industries, National Bank of Cambodia (NBC) governor Chea Chanto said. Tourism, garments and footwear have borne the brunt of the Covid-19 impact, he said, whereas the financial and agriculture sectors

  • Vietnam told to remove border tents

    Kandal provincial governor Kong Sophoan has ordered local authorities to prohibit the construction of buildings in areas bordering Cambodia and to report any irregularities immediately. Recently, Vietnamese officials removed another seven tents from the border area with Cambodia. His remarks were made on Wednesday afternoon

  • Migrant workers set to return from Malaysia

    The Ministry of Foreign Affairs and International Cooperation confirmed on Thursday that 158 Cambodian students and migrant workers will fly home from Malaysia on Friday morning. This is the second flight to bring Cambodians home from Malaysia. A ministry notice said Malaysia Airlines Flight MH754 will