Bond and Sukuk Trading Mechanism
Trading Mechanism
Trading of Bond (Corporate & Government) and SUKUK through Stock Exchange using Fixed Income Trading System (FITS).
FITS system users is Securities Company that already become IDX Exchange Members, and also KPEI Clearing Members. In transaction activities through FITS, Exchange Members are responsible to all transaction, whether for its client and its company.
Fixed Income Trading System (FITS)
Fixed Income Trading System (FITS) is Bonds and Sukuk trading facilities provided by Indonesia Stock Exchange (IDX). Bonds and Sukuk that can be transacted through FITS are Bonds and Sukuk listed on Indonesia Stock Exchange.
Bonds and Sukuk trading mechanism through FITS system is integrated between trading system for clearing and settlement, as in the above chart there are three different mechanisms, such as trading, clearing and settlement.
Bonsd and Sukuk trading activities through FITS system is supported by IDX trading regulations with the approval of Bapepam-LK, one of the clause is regulated about unit of trading (Lot Size), where unit of trading (Lot Size) is 1 Lot equal with value of Five Million Rupiah (1 Lot = 5 Million Rupiah) it’s based in framework of equity investors so that investors can own Bonds or Sukuk issued either by National Private Company or Government.
FITS system is using remote access method from Exchange Members offices, so Exchange Members can give service order (Buy or Sell) to its clients effectively and efficient.
Market Segment
FITS trading system allows member to do Bond transaction in the two trading boards of Indonesia Stock Exchange:
• Regular Outright Market is the trading mechanism in which anonymous
continuous auction forms the market price, and the trading method is based on
price and time priority.
• Negotiated Market is the facility that allows Exchange Member to report the results
of its negotiation with other Exchange Member or other party. Segment
Transaction Settlement
Market Segment | Transaction Settlement |
Regular Outright | 2nd Trading Day after Transaction (T+2) |
Negotiated | Based on agreement between Selling Exchange Members and Buying Exchange Members |
Trading Hours
Securities trading in Regular Outright Board and Negotiated Board are exercise during trading hours in Stock Exchange based on FITS Time.
Day | Session I | Session 2 |
Monday - Thursday | 09.30 – 12.00 WIB | 13.30 – 16.00 WIB |
Friday | 09.30 – 11.30 WIB | 14.00 – 16.00 WIB |