Eternity Law International News Broker license in Cambodia 2023

Broker license in Cambodia 2023

Published:
November 7, 2022

Cambodian Securities Market (CSM) officially started its operation in 2010. This element of the financial structure of the jurisdiction performs a governing function in relation to the functioning of trade platforms, clearing services and settlements. Since 2020, amendments to the law on licensing in this area have come into force. Under the new legislation, the broker license in Cambodia has changed its validity period, in addition, certain modifications have influenced amount of capital required for brokerage companies and the cost of applying for a permit.

CFD as a derivative

Based on legal provisions, a derivative is a contract between two parties where the value of the contract is determined by fluctuations in costs of starting assets such as equity and debt securities, currencies, commodities including crude oil, gold, natural gas and PPN.

This type of securities makes it possible for experienced investors to improve their own positions, as well as to trade on fluctuations in the exchange rate, percentage or value of assets.

Licenses for business and activities related to derivatives

  1. A central counterparty clearing palate (CCP) is considered to be a segment reducing operational, settlement, market, legal and non-payment risks for traders. CCP can become a buyer and the seller counterparty, and ensure compliance with transaction’s terms, even if either party fails to fulfill its own duties under transaction. Securities and Exchange Commission of Cambodia SERC issues licenses for 2 years to applicant enterprises that fully comply with all relevant requirements. Renewable license is active for 3 years. Securities companies that are properly licensed and certified may apply to relevant authorities for permit to conduct additional activities. When running a CCP business, terms and conditions regarding leverage, starting margin, minimum and maximum trades, etc. must be met.
  2. Derivative broker license in Cambodia. This is a derivatives brokerage firm. The legislation considers applications and issues a license only to firms that comply with all points of the law. This license is valid for 2 years and can be renewed in the future. At the same time, companies that have a license to conduct business in securities may request permission from authorities to conduct additional activities in the form of a derivatives broker. However, such enterprises will need to think about how to differentiate activities, as well as to meet new demands that may be put forward in connection with them.
  3. Manufacturing representative. This is an individual licensed by SERC, who is authorized to open and manage accounts for clients, as well as to provide other services as a derivatives broker. Anyone who wants to officially become a representative of derivative financial instruments must have the appropriate education and experience in conducting business activities. Businesses that intend to act as representatives need to possess a letter of acceptance from the derivative broker.

If you want to work in one of the above areas legally and are afraid to take the wrong step towards licensing, contact our company. Our experts will assist you in obtaining a Cambodia broker license, as well as offer many options for ready-made companies for sale on a turnkey basis. We will be happy to help you quickly and cost-effectively license any business activity, as well as provide professional advice on a particular issue.

You can see our current offers in the categories “Cryptocoins and licensing of cryptocurrency operations”, “Banks for sale” and “Licenses for sale”.

You could be interested

SEMI license in Luxembourg

The country needs enterprises dealing with payments to get officially-approved permits from local regulator – CSSF. As EU member, this country puts forward this regulative parameter based on the legislation on e-money regulation since 2011 and regulation 1781/2006; it implies that licensees need to follow directives and regulative norms in field of prevention of illegal...

Banks for sale in EU

Banks are not only a profitable business, but also a rather promising business, which, in any situation prevailing in the economic situation of a particular jurisdiction, generates profit. If you choose the right company to purchase, you can secure income for many years. But also, if you make a mistake when choosing a bank to...

Temporary residence permit in Ukraine

Of the ways of legal residence, many prefer to get a temporary residence permit. It should be issued if you do not have the opportunity to obtain a permanent residence permit. ALGORITHM OF PREPARATION OF DOCUMENTATION FIRST POINT To acquire a temporary view of the place of residence, you must have certain grounds. All of...

AEMI license in Malta

Acquiring an Authorised e-money license in Malta in Malta is an opportunity to start financial actions in a country that is part of the EU. Following recent amendments that lowered capital demands, Malta has become one of the most popular lawfullment for those wishing to open a virtual money establishment in the EU. Classified as...

Ready-made company in Portugal

The option to buy shelf companies in Portugal is ideal solution for businessmen who intend to establish a firm abroad and enter global market-space. In the territory of this jurisdiction, entrepreneurs often choose firms that are created under the Trespasse scheme. Below we will take a closer look at what this scheme is and what...

What is an Unregulated Forex Broker? Are Unregulated Forex Brokers Illegal?

An non-regulated FX-company is a brokerage firm that operates without the license or authorization of any adjustment or monetary regulator. These brokers may offer various trading favors, including FX trading, but will not comply with adjustment demands and standards set by controllers. It is important to note that being non-regulated does not needed mean that...
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof

Kyiv

Baseina street, 7

London

Grosvenor Gardens, 52

Washington

1629 K St. Suite 300 N.W.

Vilnius

Gediminas Avenue, 44A

Tallinn

Kesklinna linnaosa, Tuukri 19

Edinburgh

Lochrin Square, 1

Nicosia

Jacovides Tower, 5 floor

Riga

Esplanade, 7 floor

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard

Sydney

20 Martin Place

Porto

2609 Avenida da Boavista

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7