Financial consultancy firm Redbridge Cambodia has entered into a partnership with the Securities and Exchange Commission of Cambodia (SERC) to assist with implementing a more professional and more secure IT framework.
The framework will aim to ensure user data is kept safe and secure while also updating best practice guidelines for professional skills of those working in the non-banking and financial services sector, including guidelines for developing derivatives information technology.
The Memorandum of Understanding (MoU) was signed under the title of “Concerning Consultation and Technical Support on Drafting Information Technology Guideline for Derivatives Business”.
Chief Executive Officer of Redbridge Cambodia Sokha Mov told Cambodia Investment Review that she will use her experience as a lawyer in conjunction with the company’s Chief Operations Officer Thierry Ngon’s experience as a systems engineer to create best practice guidelines for the regulators IT network.
Sokha Mov previously worked as an adviser to the French government, where she was head of procurement for the Defence and Interior ministries.
“To ensure international best practice is maintained at the SERC Redbridge Cambodia will work with the regulator to draft its IT guidelines to build a framework, secure data, and ensure smooth operation for derivatives businesses. Redbridge Cambodia will also work with the regulator to create guidelines that ensure legal regulation adheres too practically and ethically,” Mov said.
“While right now we are in the beginning phase of our consultancy with SERC through this MoU we hope to be able to continue to develop the relationship in the future. That said, we have already established some meaningful preliminary assessments,” she added.
The official Facebook page of the regulator said, “This MoU is designed to contribute to the development of securities sector in Cambodia by which Redbridge Co., Ltd. will provide consultation, knowledge, experience and professional skill as well as technical assistance to SERC for drafting IT guideline for derivatives business.”
“This guideline will be an IT guide for the companies licensed/authorized by SERC to do derivatives business,” SERC added.
Cambodia’s derivatives market largely made up of gold, silver, and currency derivative trading has been rapidly increasing from just $5 million in 2017 to more than $80 million in 2018 and reached $200 million in 2019. There are currently seven license brokers listed on the Cambodia Derivatives Exchange website.
Earlier this year the government established the Non-Bank Financial Services Authority (NBFSA) following Senate approval of a draft law on its organization and function to unify all non-banking regulators and manage the rapid growth that the sector has enjoyed in recent years.