JT Capital launches, joins derivative trading market
JT Capital, a new local derivative brokerage firm, officially launched operations in Cambodia on Saturday, joining in on Cambodia’s fledgling derivative trading market after receiving a licence from the Securities and Exchange Commission of Cambodia (SECC), according to an SECC press release.
Speaking during the company’s launch ceremony, SECC director-general Sou Socheat said trading activity in the derivative sector saw a significant surge last year.
Socheat did not detail the actual number of derivative trading transactions, but said last year’s transactions jumped 2,000 per cent compared to 2017.
Boost in confidence
According to Socheat, the hefty jump in derivative trading transactions is due to effective regulations from the SECC and growing confidence among investors.
Derivative trading consists of two main entities – a brokerage firm and a central counterparty that acts as a clearing house.
According to SECC regulations set late in 2015, a brokerage firm must meet a minimum capital requirement of $250,000, while a central counterparty must cover $5 million.
There are more than 10 licensed derivative brokerage firms in Cambodia and four licensed central counterparties.
In March 2017, the SECC capped the number of central counterparty licences at four, claiming that was a sufficient number in order to satisfy current demand.