Wednesday, October 20, 2010

Cambodia commodity exchange remains shelved

October 20, 2010

PHNOM PHEN (Commodity Online) : More than three months after its scheduled opening date, Cambodia’s only commodity exchange remained shelved as authorities failed to draft regulations to govern the exchange.

The privately-owned Cambodian Mercantile Exchange was due to launch on July 30 and begin online trading of 11 commodities by mid-August.

CMEX officials have repeatedly declined to comment on the reasons for the delay.

However, Securities and Exchange Commission of Cambodia (ECC) said the exchange could not open until the regulations to govern it were in place.

In a statement ECC said it asked the CMEX not to operate because we need the regulations to be set up first and they need to apply for the regulation.

Once regulations were created, it said, related ministries, such as the Ministry of Agriculture, would need to be consulted before a final draft was available.

Analysts said despite the apparent delay, the CMEX would have a positive impact once established.

“Cambodia has never had a commodities exchange before, and it’s getting by without it, but it would be good to have one at some time in the future as the agriculture market develops,” they said

A mercantile exchange helps to monitor and regulate the price of the goods being traded by setting a market price for goods based on broader supply and demand.

Commodity traders usually use futures contracts, which can help farmers because they can hedge the cost of their produce when they know the future price they will receive for their goods on delivery.

CMEX said in July that, initially, 11 commodities would be listed on the Kingdom's exchange.

These were gold, silver, cotton, crude oil, heating oil, natural gas, soya-bean oil, soya beans, wheat, copper and coffee.

9 comments:

Anonymous said...

One other thing you have to add to the cambodian psyche: lots of boasting and posturing but nothing concrete behind.

it's called HYPE.

Y

Anonymous said...

CMEX needs to pay the CPP more. Law can be pass in one day if the dollars are enough.

Anonymous said...

I think every us dollar must change into khmer currency first before spending...just like in Thailand and Vietnam...Otherwise we will have big problem...

Anonymous said...

Stupid khmer Govt should has done something about this for a long time? Every single US dollar must change into khmer currency..khmer money first! if you visit other country like vietnam or Thailand, they will ask you change US money to their money first! but Khmer Govt didn't do Shits???

Anonymous said...

What do you are commenting on ?
We don't talk about STOCK EXCHANGE here ??

Anonymous said...

Fraud Country what els.....this CCP is a joke gov country and it people. They can win shit and do shit right. It alway go wrong.. Khmer never go back to the great a Ankor like we used to be....

KhmerIsrael said...

When they do get this thing going, I hope they list land as a commodity. I want to corner this market to give back to its rightful people. Anyone else want to throw in their bets with me? (:>

Anonymous said...

soon everything u do in Khmer have to get approval from Hanoi or Bejing China

Anonymous said...

everybody got to start somewhere, somehow, you know! be patient, cambodia's stock exchange will grow before long! god bless cambodia.