Trading Mechanism

Equities Trading Mechanism

TRADING PROCESS IN THE EXCHANGE

THE PROCESS OF REMOTE TRADING

TRANSACTION

All transactions in the Exchange are processed in a facility called as JATS. Only the Exchange Members, who also become the members of the Indonesian Clearing and Guarantee Corporation (KPEI), can input the orders into the JATS. The Exchange Members are responsible for every transaction they make in the Exchange.

Exchange Members have the responsibility to settle all the transactions they've made, as stated in the Exchange Transaction List (DTB), including the transactions that occur because of:

  • the errors made by the supporting equipment or Remote Trading applications of the Exchange Member, except for the errors made by the JONEC software that was provided by the Bourse; and/or
  • the mistakes caused by the carelessness of the traders when inserting the purchase and sell orders into the JATS; and/or
  • the mistakes caused by the carelessness of the IT Officer-RT when operating their supporting equipments or applications; an/or

the invalid access into the Exchange Member’s supporting equipments or applications.


Market Segmentation

  • Regular Market;
  • Cash Market;
  • Negotiated Market.

Pre-Emptive Rights are traded only on the first session of the Cash and Negotiated Market.

Price Step

Price Fraction Scale

Price Fraction

Maximum Price Movement *

<200,-

Rp1,-

Rp10,-

Rp200,- < Rp500,-

Rp2,-

Rp20,-

Rp500,- < Rp2.000,-

Rp5,-

Rp50,-

Rp2.000,- < Rp5.000,-

Rp1,-

Rp100,-

>= Rp5.000,-

Rp25,-

Rp250,-

Stock step value and its maximum price step are valid for one entire trading day and will be adjusted on the next day if its closing price falls on a different price range. The maximum price step should not exceed the percentage of Auto Rejection limit.

Round Lot

1 lot = 100 shares


Auto Rejection

The buying and selling price orders entered into the JATS have to be in a certain price range. If a Broker inputs a price order above or below the stock's price range, the JATS will automatically reject the price order.

As mentioned in Decision of The Board of Directors Kep-00096/BEI/08-2015, JATS will automatically do the Auto Rejection to the price orders input into the JATS at the Regular and Cash Markets if:

  1. The selling or buying order is smaller than Rp 50 (fifty rupiah);
  2. The selling or buying orders input into the JATS are more than 35% (thirty five percent) above or 10% (ten percent) below the Reference Price for stock price that ranges from Rp 50 (fifty rupiah) to Rp 200 (two hundred rupiah);
  3. The selling or buying order input into the JATS are more than 25% (twenty five percent) above or 10% (ten percent) below the Reference Price for stock price that ranges from above Rp 200 (two hundred rupiah) to Rp 5,000 (five thousand rupiah);

  4. The selling or buying order input into the JATS are more than 20% (twenty percent) above or 10% (ten percent) below the Reference Price for stock price that is more than Rp 5,000 (five thousand rupiah).

Stock trading as a result of initial public offering is determined twice wider than Auto Rejection percentage as mentioned above.


Reference Prices used to limit the highest and lowest offering price toward stocks entered into JATS at the Regular and Cash Markets are determined by the:

  • Opening Price formed in the Pre-Opening Session; or
  • Closing Price of the previous closing date if a Pre-Opening Price is not formed (Previous Price).
  • In a case that a Listed Company doing corporate actions, in 3 (three) consecutive Exchange Days after the end of equity trading that has right (cum periode) in Regular Market, the Reference Price used is the Previous Price of each market (Regular or Cash).

Pre-Opening Session

Stock trading at the Regular Market starts with a Pre-opening session. This session allows Exchange Members to input their purchase and sell orders according to the provisions of the stock unit, step value and Auto Rejection limit.

The Pre-opening price is formed from the accumulation of the total highest bids and asks matched by the JATS during the Pre-opening session.

All bids and asks that have not been matched during the pre-opening session will be processed in the first session of the trading day, except if the price of the bids and asks has excel the Auto Rejection limit.

 

Regular Market

The bids and asks will be processed by the JATS by considering:

1. Price priority

Higher bids have more priority than lower bids. On the contrary, lower asks have more priority than higher asks.

2. Time Priority

If the bids and asks are on the same price, JATS will give priority to the first submitted bids and asks.

 

Reduction on the number of purchase or sell order processed into the JATS will not cause time priority lose.

 

Negotiated Market

In Negotiated Market, prices of each security are bargained out between:

  • Exchange Members
  • Investor and one Exchange Member
  • Investor and Exchange Members

The results of the negotiation will be processed through the JATS.

The Exchange Members can submit their bids and asks through the ad board, and they can change or cancel them before they are matched with other bids and asks in the JATS. Once they are matched, a transaction is made and will be carried out.

Transaction Settlement

Market Segmentation

Settlement Period

Regular market

The third Exchange day after the trade is executed (T+3)

Cash Market

The same day as the trade (T+0)

Negotiated Market

Based on the agreement between the Seller and the Buyer

Regular and Cash Markets

Transaction settlements between the sellers and buyers in the Regular and Cash Markets are guaranteed by the KPEI.

  • Transactions in Regular Market have to be settled on the third Exchange day after the trade (T+3).
  • Transactions in Cash Market have to be settled on the same day as the trade (T+0).

Settlement process in the Regular and Cash Market is carried out by the KPEI through the Netting process and book-entry on the Exchange Members' accounts in the Indonesian Central Securities Depository (KSEI).

If an Exchange Member fails to fulfill its obligations to deliver the securities as determined, it has to pay an Alternate Cash Settlement (ACS) amounted to 125% (one hundred twenty five percent) of that securities' highest price in:

  • The Regular and Cash Market, which deadline of settlement falls on the same date; and
  • The first session of the Regular Market at the settlement date.

If an Exchange Member fails to fulfill its obligation to pay the service fees to the KPEI, the Exchange Member needs to settle the matter according to the KPEI Regulations.

Exchange Member who fails to fulfill its obligations to pay the settlement fees will be suspended from the market activities until IDX receives a confirmation from the KPEI stating that the Exchange Member has fulfill all its obligations. The Exchange Member might also receive other sanctions according to the Exchange Regulations.

 

Negotiated Market

The settlement date in the Negotiation Market is decided based on the agreement between the seller and buyer, and is settled Trade by Trade (without Netting). If the date has not yet been decided, the transaction settlement has to be settled on the third Exchange day after the trade (T+3) at the latest, or on the same day as the transaction (T+0), if the trade took place on the last day of pre-emptive rights trading.

The transaction settlements in Negotiated market sre settled by direct transfer accounts between the buyers and sellers and are not guaranteed by the KPEI.

 

Transaction fees


For every transaction, the Exchange Members have to pay fees to the IDX, KPEI and KSEI based on the value of each transaction:

Type of Transaction

Transaction Fees

Guarantee Fund

Tax*

Regular Market and Cash Market

0.03%

0.01%

VAT and other tax obligations

Negotiated Market

0.03% or pursuant to the Exchange Policy -

 

 

Bond

0.005%

 

 

*) Paid to the Exchange as compulsory contribution, in accordance to the prevailing provisions.

The minimum transaction fee the Exchange Member has to pay is Rp 2,000,000 (two millions Rupiah). Suspended Exchange Members also have to pay for this fee.

The fees have to be paid to the Exchange account every month, or on the twelfth day of the following month at the latest. If the twelfth day of the following month falls on Saturday, Sunday or holiday, the fees should be paid on the next Exchange day. Late payments will be subjected with 1% of penalty for every one day delay.

The Exchange Member who doesn’t fulfill its obligations at least 5 days after the payment deadline will not only receive penalty, but also will be suspended until it has settled its payment obligations and the penalties.

Detail information regarding the procedure of securities trading can be found in the IDX Regulations number II-A on Securities Trading.

 

Bonds 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