Local Derivatives Market Welcomes New Player


Alpha Gold Futures launched yesterday a derivatives trading service, becoming the latest addition to the kingdom’s nascent derivatives market.
The company is a joint venture between Indonesia-based Alpha Gold and local conglomerate Keo Maly Group.

The high volatility of gold prices makes it a valuable commodity for trading on derivatives markets. Reuters

Alpha Gold Futures is already trading two products, gold and forex, explained Keo Maly, Alpha Gold Futures’ chairwoman, who also said they plan to expand their portfolio in the near future, allowing investors to buy other derivatives like precious metals, oil, and gas.

“We are currently developing our business to become a one-stop solution in the market. We want to be able to provide every service our clients need, and make them feel their investment in our company is secure and reliable,” Ms Maly said.

The company received its broker licence from the Securities and Exchange Commission of Cambodia (SECC) in November this year, and now offers 19 currency pairings for forex as well as LOCO London (London Gold), a traded product provided by the London International Financial Futures Exchange.

There are now 10 derivatives brokers and four clearing houses in the local stock market, according to SECC.

“The number of trading accounts has been increasing progressively as people gain confidence in the market,” said Sou Socheat, director-general of SECC.

“We launched the market just over a year ago. We are improving and getting bigger as public awareness of us increases,” Mr Socheat said.

Derivatives are financial contracts that derive their value from an underlying asset. These could be stocks, indices, commodities, currencies, exchange rates, or the rate of interest.

These financial instruments help investors make profits by betting on the future value of the underlying asset.

The derivatives market was launched in Cambodia in 2015.

This article was originally published in the Khmer Times.


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