Derivatives licensing capped by regulator
Cambodia’s capital market regulator announced on March 22 that it would suspend the issuance of new central counterparty licences to derivatives trading firms, claiming that capping the market at four was sufficient to serve current demand. The Securities Exchange Commission of Cambodia said in an announcement signed on March 20 and published on March 22 that it would no longer accept applications for companies that act as clearing houses for derivative brokerage firms. However, it would still accept derivative brokerage applications to boost trading activity in the inherently risky sector. “With the current situation of the derivatives market, the four licensed [central counterparty] companies are enough to handle all the trading activity,” said Sok Dara, deputy director-general of the SECC.
