Trading Mechanism

Equities Trading Mechanism

All transactions in the Exchange are processed in a facility called as JATS Next-G. 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.

Trading Process In The Exchange

TRANSACTION

Market Segmentation and Settlement

Market Segmentation

Transaction Settlement

Regular Market

The second Exchange day after the trade is executed (T+2)

Cash Market

The same day as the trade (T+0)

Negotiaded Market

Based on the agreement between the Seller and the Buyer

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

Click here for more nformation about trading hour.

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 Next-G 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.

Pre-Closing and Post-Trading

At Pre-Closing Session, The Exchange Members input the buying and selling orders. JATS Next-G processes the Pre-Opening price forming and allocates every done transaction. At Post-Trading Session, The Exchange Members input the buying and selling orders and JATS processes the Pre-Closing price forming and allocates every done transaction. JATS Next-G processes the allocates transaction with closing price.

Regular Market and Cash Market

Bids and Asks will be processed by JATS Next-G by considering:

  • Price Priority: Higher bids have more priority than lower bids. On the contrary, lower asks have more priority than higher asks.
  • 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 NEXT-G. 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 NEXT-G. Once they are matched, a transaction is made and will be carried out.

Trading Unit

Stock Trading at Regular and Cash Market must be traded according to stock unit, that is round lot, which 1 lot = 100 shares. Detail information regarding the Price Fraction can be found in the IDX Regulation number II-A Kep-00023/BEI/04-2016.

Price Fraction Scale

Price Fraction

Maximum Price Movement*

<200,-

Rp1,-

Rp10,-

Rp200,- < Rp500,-

Rp2,-

Rp20,-

Rp500,- < Rp2.000,-

Rp5,-

Rp50,-

Rp2.000,- < Rp5.000,-

Rp10,-

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.

Auto Rejection

The buying and selling price orders entered into the JATS NEXT-G 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 NEXT-G will automatically reject the price order.

As mentioned in IDX Regulation Number II-A Kep-00168/BEI/11-2018 , JATS Next-G will automatically do the Auto Rejection to the price orders input into the JATS Next-G at the Regular and Cash Markets if:

No

Price Ranges

Selling/Buying Orders

Volume Penawaran

1

Rp50,- to Rp200,-

<Rp 50,-

>35% / <35%

 

> 50.000 lot atau 5% dari jumlah efek tercatat (mana yang lebih kecil)

 

2

Rp200,- to Rp5.000,-

>25% / <25%

3

> Rp5.000,-

>20% / <20%

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

For Warrant, bids and asks price of warrant will be processed through JATS Next-G with same price or more than the closing price of the underlying stock.

Reference Prices used to limit the highest and lowest offering price toward stocks entered into JATS Next-G 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).

Transaction Settlement

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+2).
  • 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.

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+2) 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:

 

Regular Market

Cash Market

Negotiated Market

IDX Transaction Fee

0,018%

0,018%

0,018%

KPEI Clearing Fee

0,009%

0,009%

0,009%

KSEI Settlement Fee

0,003%

0,003%

0,003%

KPEI Guarantee Fee

0,010%

0,010%

-

Tax 10%

0,003%

0,003%

0,003%

PPh Final 0,1%*

(Sell Only)

0,100%

0,100%

0,100%

Total

0,143% (Sell)

0,043% (Buy)

0,143% (Selll)

0,043% (Buy)

0,133% (Sell)

0,033% (Buy)

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

Transaction Fee above is exclude Exchange Members transaction fee.

Bond and Sukuk Trading Mechanism

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.
Transaction Settlement
Market Segment Transaction Settlement
Regular Outrigt 2nd Trading Day after Transaction (T+2)
Negotiated Based on agreement between Selling Exchange Members and Buying Exchange Members
Click here for more information about Trading hours.

Bonds and Sukuk Transaction Fee

For Bonds and Sukuk transaction, the Exchange Members have to pay fees to the IDX, KPEI and KSEI based on :

Market Segment Nominal Value
Guarantee Fund Negotiated Market
Transaction Fee, Clearing and Settlement

≤Rp500.000.000

Rp20.000 Rp35.000

>Rp500.000.000 – Rp10.000.000.000

0,0050% 0,0075%
>Rp10.000.000.000 0,00375% 0,0050%
Tax*   10% of the Fee 10% of the Fee

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

Derivatives Trading Mechanism

Derivatives transactions in the Exchange are processed in a facility called as JATS Next-G. Only the Derivatives Exchange Members can input the orders into the JATS Next-G. The Exchange Members are responsible for every transaction they make in the Exchange.

Trading Process

There is two Derivatives which can be traded in IDX, that is LQ45 Index Futures and Indonesia Government Bond Futures (IGBF). The Exchange Members are responsible for every derivatives transaction they make in the Exchange. Derivatives Transaction in the Exchange are processed in a facility called as JATS Next-G. The trading method is Continous Auction form and the trading method is based on price and time priority. 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 NEXT-G. Once they are matched, a transaction is made and will be carried out.

Product
Derivatives Products in Indonesia Stock Exchange is:
Derivatives Product Contract Period
KBIE LQ-45 5-Year Benchmark Indonesia Government Bond Futures 1 month, 2 months, 3 months
KB SUN 10-Year Benchmark Indonesia Government Bond Futures 3 months (March, June, and September)

Liquidity Provider

In Derivatives Trading Mechanism, IDX introduced the new mechanism called Liquidity Provider. Derivatives Exchange Members who also act as Liquidity Provider can submit the quotation (bids and asks) continuously to make Derivatives transaction liquid.

Derivatives Trading Unit

Derivatives Trading Unit Multiplier Fraction Price Initial Margin
KBIE LQ-45 KBIE LQ-45 Contract Rp500.000,- 0,05 4% X Index Poin X JNumber of Contract X Multiplier
KB SUN KB SUN Contract Rp1.000.000.000,- 0,01% (1bp)

5 Tahun:

1% X Contract Size X Number of Contract X Futures Price

10 Tahun:

2% X Contract Size X Number of Contract X Futures Price

Auto Rejection

JATS Next-G will automatically do the Auto Rejection to the derivatives' price orders input into the JATS Next-G if:

Derivatives Fraction Price Auto Rejection
KBIE LQ-45 0,05 10% from opening price
KB SUN 0,01% (1 bp) 300 bp from HPH Closing price

Transaction Settlement

Settlement of Derivative Products is carried out by the KPEI through the Netting process and held with this provision:

Derivatives Transaction Settlement
KBIE LQ-45 1st Trading Day After Transaction (T+1)
KB SUN 1st Trading Day After Transaction (T+1)

Click here for more information about Trading hours.

Derivatives Transation Fees

For derivatives transaction, the Exchange Members have to pay fees based on:

  LQ-45 Futures KB SUN
Transaction Fee (exclude Clearing and Settlement) Rp3.000,-/transaction Rp10.000,-/contract
PPN 10%* 10% from fees 10% from fees

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