Financial Markets perform a vital function within the global economic system; it is a mechanism which allows people to trade financial securities, commodities and other fungible items. In the global financial system, financial markets can transfer of risk, removes obstacles to financial development and facilitates international trade and provides benefits to a financial system and is a new alternative for transformation of saving into financing for long-term productive investment by effectively mobilizing and allocating of capital or financial resources among households, corporations, governmental units to raise capital for their investment projects by issuing the public traded securities. It is also used to match between the borrowers and lenders or sellers and buyers coming together to trade securities or financial products.
Currently, Cambodia has not yet developed the financial markets. Under the ADB assistance, the Royal Government of Cambodia has made significant progress in establishing the Financial Sector Development Plan 2001-2010 and subsequently was updated and revised as the Financial Sector Development Strategy 2006-2015 aiming at to develop the long-term financial sector strategy in Cambodia. This policy serves as a legal framework and roadmap for development of securities markets in Cambodia. Thus, to establish well-functioning securities markets, we require necessary and sufficient conditions such as proper national economic growth, political stability, adequate market infrastructure and legal framework, intermediaries, issuers, investors, and implementing of an accounting and audit standards. In reality, Cambodia today has political stability and economic development which an average annual growth rates reach 11.4% in 2004, 13.5% in 2005, 10.4% in 2006 and 9.5% in 2007 and the average per capita income almost double from US$288 in 2000 to US$ 513 in 2006 and US$ 572 in 2007.
Accordingly, even, experiences around the world has shown that effective financial markets are very difficult to develop, but the Royal Government of Cambodia (RGC) has shown his commitment and endeavor to establish a Cambodia Securities Markets by the end of 2009 aiming at to contribute the financial resource mobilization to finance the national economy, and to ensure sustainable economic growth, as a result, the Cambodia Securities Markets will be founded as a joint-venture securities company between RGC and Korea Exchanges. However, Cambodia still faces many problems such as legal framework and enforcement, corporate governance and global economic downturn.
Considering that Cambodia's capital markets is at newborn stage, many people are not aware of available securities investment, legal framework and infrastructure having an effect over their securities investment and trading. Thus, Capital Market Institute of Cambodia (CMI-Cambodia) was founded by Mr. Chhiv Sok Thet and his partners in order to participate in developing the capital markets industry in the country. CMI-Cambodia was established as Non-Governmental Organization; the main mission focuses on services of an education, training and dissemination as well as consultation and research on specialization of financial markets. CMI-Cambodia serves as a capital industry utility, develops and delivers our products and services: publication, research, education and specialized in-house training to the market-users, securities and brokerage houses, investors, public and other organizations. CMI-Cambodia operates itself as an independent educational organization in order to serve an advantage for the public and undertakes education and dissemination of the capital markets.
CMI-Cambodia also acts as focal points for researchers, academics and public-policy makers to exchange their views and ideas on capital markets development. Additionally, it participates in the development of standards and fostering the best practices initiatives in the financial market services.
Therefore, CMI-Cambodia has designed the public awareness and education programs of capital and financial markets in collaboration with international financial institutions and other private universities in Cambodia in order to train about securities investment, investor protection, financial and capital market specialization to the market-users, investors, brokerags/securities houses, regulators, policy makers, public, youth, students and other organizations.
