29 December 2020
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The Indonesia Stock Exchange (“IDX”) has amended its regulations on the trading of equity securities through IDX Board of Directors’ Resolution No. Kep-00108/BEI/2020, which was issued on 4 December 2020 (“Amended Rules”).
Below are the key changes introduced by the Amended Rules:
1. Trading hours
IDX trading hours have been revised as follows:
a. Regular Market
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Monday to Thursday |
Pre-opening session |
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Session I |
09.00 – 12.00 Jakarta time |
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Session II |
13.30 – 15.49.59 Jakarta time |
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Pre-closing session |
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Friday |
Pre-opening session |
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Session I |
09.00 – 11.30 Jakarta time |
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Session II |
14.00 – 15.49.59 Jakarta time |
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Pre-closing session |
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b. Cash Market
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Monday to Thursday |
Session I |
09.00 – 12.00 Jakarta time |
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Friday |
Session I |
09.0]0 – 11.30 Jakarta time |
c. Negotiated Market
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Monday to Thursday |
Session I |
09.00 – 12.00 Jakarta time: used by the IDX members to input results of negotiation into JATS, and counterparty to confirm negotiated outcomes. |
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Session II |
13.30 – 16.30 Jakarta time – used by IDX members to input results of negotiation into JATS, and counterparty to confirm negotiated outcome. |
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Friday |
Session I |
09.00 – 11.30 Jakarta time: used by IDX members to input results of negotiation into JATS, and counterparty to confirm negotiated outcome. |
|
Session II |
14.00 – 16.30 Jakarta time: used by the IDX members to input results of negotiation into JATS, and counterparty to confirm negotiated outcome. |
The above new trading hours will enter into effect on 26 July 2021.
2. Auto Rejection
JATS will automatically reject price orders that are entered on the regular and cash markets if:
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No. |
Reference Price |
Auto Rejection upper limit |
Auto Rejection lower limit |
Volume order limit |
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Rp50 – Rp200 |
>35% |
>35% |
> 50,000 lot or 5% of stock's listed shares |
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>Rp200 – Rp5,000 |
>25% |
>25% |
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3. |
> Rp5,000 |
>20% |
>20% |
The above provisions will not be implemented for the time being, with the timing of their introduction to be determined later. Until then, the previous rules on auto rejection remain in effect, as described below:
|
No. |
Reference Price |
Auto Rejection upper limit |
Auto Rejection lower limit |
Volume order limit |
|
1. |
Rp50 – Rp200 |
>35% |
<Rp50 or <7% |
> 50,000 lot or 5% of stock's listed shares |
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2. |
>Rp200 – Rp5,000 |
>25% |
<7% |
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3. |
> Rp5,000 |
>20% |
<7% |
3. Indicative Equilibrium Price (IEP) and Indicative Equilibrium Volume (IEV)
Going ahead, JATS will display information on IEP and IEV during the pre-opening and pre-closing sessions. The Amended Rules define IEP as the indicated transaction price, calculated using the JATS price formation algorithm. IEV is defined as indicated transaction volume, using the JATS price formation algorithm. This is a new provision that will enter into effect on 26 July 2021.
4. Market Orders
The Amended Rules introduce a new alternative mechanism for traders’ orders. Previously, a trader (via a securities custodian/broker) could only submit a limit order where the order was limited by the number of shares and a price that had been determined by the trader. Under the Amended Rules, a trader may now submit an order to the custodian/broker based on transaction volume (market order). The market order mechanism will be available in the regular market (except during the pre-closing session) and the cash market starting from 26 July 2021.
For further information, please contact:
Freddy Karyadi, Partner, ABNR
+62818103949
Rita Tyastuti Taufik, Partner, ABNR
+628129172126
Novario Asca H, Senior Associate, ABNR
