SERC, IFC advance roadmap for Cambodia’s derivatives market

SERC, IFC advance roadmap for Cambodia’s derivatives market

Derivatives market calls for a clear roadmap, a sound regulatory framework, robust market infrastructure, skilled professionals and close collaboration among all stakeholders.

The Securities and Exchange Regulator of Cambodia (SERC) and the International Finance Corporation (IFC) have intensified efforts to develop Cambodia’s derivatives market through a capacity-building workshop to strengthen regulatory preparedness, market infrastructure and stakeholder coordination.

The workshop on ‘Derivatives Market’ held under the framework of the cooperation agreement signed on January 22, 2025, was chaired by Sou Socheat, Delegate of the Royal Government in charge as Director General of SERC, in Phnom Penh on Monday.

According to a SERC press release issued yesterday, the workshop sought to provide insights into the importance of the derivatives market for Cambodia, the development of a market roadmap, the roles of relevant stakeholders, and lessons learned from international experiences and best practices related to the development, supervision and regulation of derivatives markets.

In his opening remarks, the SERC Director General emphasised that establishing a successful derivatives market requires a comprehensive and coordinated approach involving both public and private sector stakeholders.

“The successful development of a derivatives market requires more than just introducing new products. It demands a clear roadmap, a sound regulatory framework, robust market infrastructure, capable institutions, skilled professionals and key players, and close collaboration among all stakeholders,” he said.

During the event, Puth Phally, Investment Officer at IFC, highlighted the achievements of the partnership over recent years, noting that a series of engagements had helped deepen understanding of derivatives and their role in risk management.

“Over the past few years, we have worked together through a series of engagements to build knowledge and technical capacity, building on derivatives,” she said.

She added that the collaboration had evolved from promoting a shared understanding of derivatives to identifying practical measures needed to establish Cambodia’s onshore hedging market.

Phally said, “Through these workshops, we’ve moved from building a shared understanding of derivatives and their role in risk management to aligning on the practical steps needed to develop Cambodia’s onshore hedging market.”

“We have identified key gaps, drawn on international experience, and started converging on a common direction for legal, regulatory, and market development,” she added.

Supported by the Ministry of Finance of the Government of the Grand Duchy of Luxembourg, the workshop also featured presentations by Philippe Ahoua, IFC Senior Advisor, and Jacqueline Kendi Mwiti, IFC Financial Officer, with Vin Pheakdey, Deputy Director General of SERC, delivering the closing remarks.

The workshop brought together 80 participants, including senior officials from the SERC, Ministry of Justice (MoJ), National Bank of Cambodia (NBC), Cambodia Association of Securities Firms (CASF), Derivatives Broker Association in Cambodia (DBAC), Association of Banks in Cambodia (ABC), commercial banks and central counterparties.

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