On 15 June, 2018, Securities and Exchange Commission of Cambodia (SECC) and Cambodian Derivatives Exchange (CDX) co-organized a forum on “Potential of Derivatives Market in Cambodia’s Financial Sector”, in order to educate general public about derivatives trading. H.E. Sou Socheat, Director General of SECC, Mr. Lawrence Kook, Director of CDX, Mr. Stephanus Paulus Lumintang, President Director of Jakarta Futures Exchange (JFX), and a list of honourable international speakers delivered a wealth of knowledge and the latest trend on derivatives trading. Besides, the event was highlighted by the memorandum of understanding signing between CDX and JFX for further collaboration, witnessed by H.E. Sou Socheat.
A ground-breaking MOU signed between JFX and CDX opened a new chapter in the derivatives market
Mr. Paulus expressed his great expectation to the collaboration between CDX and JFX, said “Derivatives trading has arrived Indonesia close to two decades ago and it has been going strong ever since. Our management team has acquired years of experience in the derivatives market and we are always seeking ways to improve the trading system for our market. The collaboration with CDX will certainly allow us to bring both parties to another level.”
Mr. Paulus expressed his excitement on the research and development on clearing system and transaction code, as these projects will greatly enhance the security and the transparency of derivatives trading. “By improving the financial sector of Cambodia, the country itself will be improved as well. Indonesia has always been a strong supporter of Kingdom of Cambodia and it is a pleasure for JFX to participate in developing the local financial sector.” said Mr. Paulus.
One of the topic speakers and panellists, Mr. Will Robbins, Head of Asia for IS Prime, shared, “It is an honour to be able to join this prestigious forum to share my forex industry insight with derivatives experts and investors in Cambodia. Professionals from across the industry have covered a wide of topics including marketing and education. My presentation focused on the liquidity, risk management and technology aspects relating to running a successful brokerage in Cambodia. As the leading Liquidity Provider (LP) in the global forex market, IS Prime – which is regulated by the FCA – focuses on providing transparency, reliability and stability on pricing by using advanced technology.”
Indeed, for most retail investors, there is often a lack of understanding on the pricing mechanism as well as the relationship between LPs, CCPs and brokers. “It is imperative for CCPs to seek solutions with reputable, regulated and competitively priced LPs. LPs also need to be selective in the clients they partner with. IS Prime and CDX group companies have forged a very successful relationship over the last few years. CDX actively provides advice to SECC to help to improve regulation and systems for the derivatives market. This is in the best interest of both retail investors and derivatives brokers in Cambodia. This focus on high standards to drive the market forward provides IS Prime with great confidence in working with CDX,” said Mr. Robbins.
The moderator of the panel discussion, Mr. Jonathan Barratt, a derivatives expert from Australia, was interviewed with regard to the event. “In my 33 years of my career in the derivatives market, it is extremely rare to see a young market to grow in such an exponential way while the governing body [SECC] regulates the market with rigorous practices.” said Mr. Barratt.
He continued “I have known the management of CDX for years as we came across each other while working in this industry in many other countries. They are applaudingly active in bringing international standard to this lovely country, which is unprecedented, as most companies might want less regulation rather than more. It was my honour to join the forum and witness the progress of this country has made, especially in derivatives market.”
With so many international experts in this forum, audiences expressed their gratitude to SECC and CDX to co-organize this forum, having deepening their knowledge in derivatives trading in a global level. Sources close to management of CDX stated that more forums will be held to educate locals to raise the financial literacy of the country.