Cambodia Investment Review
The Securities and Exchange Regulator of Cambodia (SERC) and the International Finance Corporation (IFC) have signed a cooperation agreement aimed at developing Cambodia’s derivatives market. The agreement, formalized on January 22, 2025, at Raffles Hotel Le Royal, marks a significant step toward expanding the country’s financial landscape.
The signing ceremony was attended by H.E. SOU Socheat, Delegate of the Royal Government and Director General of SERC, and Mr. Tom Ceusters, Director of Capital Markets and Investments at IFC. The event was held with the approval of H.E. Dr. Aun Pornmoniroth, Deputy Prime Minister, Minister of Economy and Finance, and Chairman of the Non-Bank Financial Services Authority (FSA).
A Step Towards Financial Stability and Risk Management
Following the agreement, SERC and IFC co-hosted a capacity-building program focused on the fundamentals of derivatives trading. Participants were provided with in-depth insights into pricing and valuation, risk mitigation strategies, and case studies on how derivatives markets have evolved in regional and global contexts.
H.E. SOU Socheat emphasized the potential of Cambodia’s derivatives market, stating that the market is still in its early stages but has significant potential to contribute to the nation’s financial development. He added that derivatives could provide innovative financial instruments that support risk management and investment diversification and that moving forward will require dedication, collaboration, and a shared commitment to excellence.
Mr. Tom Ceusters highlighted the importance of a well-functioning derivatives market, noting that it plays a crucial role in enhancing financial stability, managing risks, and fostering economic growth. He said that the partnership underscores a shared commitment to creating a transparent and efficient financial infrastructure that will benefit investors, businesses, and the broader economy.
Industry Leaders and Government Officials in Attendance
The program brought together key figures from Cambodia’s financial and regulatory sectors, including H.E. Tanheang Davann, Secretary of State of the Ministry of Justice, and Dr. Lay Sokheng, Director General of Regulation and Financial Inclusion at the National Bank of Cambodia. Industry stakeholders, regulatory officials, and international experts also participated in discussions on how derivatives can serve as essential financial tools in Cambodia’s evolving economy.
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Presentations were delivered by IFC representatives, including Mr. Philippe Ahoua, Senior Advisor for Capital Markets and Investments, providing a global perspective on derivatives markets and their role in economic development.
As Cambodia continues to expand its financial infrastructure, the partnership between SERC and IFC is expected to pave the way for a more sophisticated investment environment, offering new opportunities for risk management and economic growth.
