Improving Alternative Market Organizer System, IDX Encourages EBUS Transactions

JAKARTA - PT Bursa Efek Indonesia (IDX) has imposed changes to securities trading regulations through the Alternative Market Organizing System (SPPA) which has been adjusted in conjunction with the launch of a new version of SPPA on Monday, February 19, 2024.

As stipulated in the Financial Services Authority Regulation (POJK) Number 8/POJK.04/2019 concerning Alternative Market Operators, IDX is the only organizer of the Debt and Sukuk Stock Trading System (EBUS) in the secondary market of Indonesian Debt.

IDX Director Jeffrey Hendrik said that his party continues to be committed to ensuring that debt and sukuk trading actors in Indonesia can benefit optimally from SPPA.

As for the new version of the SPPA, there is an increase in the capabilities of the system, as well as an addition of features so that the trade process becomes more accurate and effective for service users.

The increase in SPPA capability this time includes the provision of limiting limits on the minimum trading limit (enhanced counter party limit), reference trading prices, corrections and cancellations of transactions made directly through SPPA, as well as improving recordings of transaction activities that are more comprehensive and can be integrated with administrative systems and SPPA service user system dealers.

The SPPA has been designed in such a way to accommodate the needs of EBUS market players in Indonesia, ranging from the provision of Over The Counter (OTC) trading services to trading via order book. Thus, it is hoped that it can increase liquidity and trade efficiency of Indonesia's EBUS," he explained in his statement, Monday, February 19.

Jeffrey said that the IDX always discusses and listens to input from EBUS market players, Main Dealers, and related associations such as the Debt Traders Association (HIMDASUN) in order to continue to improve SPPA's capabilities and increase the convenience of using SPPA in Debt Transactions.

Trading in Government Securities (SUN) through SPPA continues to increase from year to year, both in terms of trading value and market share.

To date, there are 33 Indonesian EBUS market players who have become SPPA Service Users and throughout 2023 have managed to record transactions worth IDR 139 trillion.

The transaction increased by 12 percent when compared to 2022.

Jeffrey said this was of course supported by the role of SPPA which made EBUS trading more efficient because it was directly connected to the Securities Transaction Report Recipient System (PLTE) and was more effective because its trade accommodated the multilateral matching mechanism to bilateral negotiations.

Currently, SPPA is also a selected platform to become the Main Dealer Trading Infrastructure for SUN and State Sharia Securities (SBSN) by the Directorate General of Financing and Risk Management of the Ministry of Finance of the Republic of Indonesia.

"This update is expected to increase efficiency and facilitate Main Dealer transaction activities in SPPA, so that it can increase liquidity and price disclosure of SUN and SBSN Benchmark through SPPA," explained Jeffrey.

Jeffrey conveyed that with a more reliable system through this update, the IDX SPPA is expected to be able to hold regular, reasonable and efficient EBUS trading in the secondary market.

In the future, all debt market players can join the SPPA Service Users to get liquidity, price disclosure, and better efficiency than EBUS trading in Indonesia.

"BEI is committed to continuing to increase the role of SPPA and complement the EBUS Trading ecosystem in Indonesia so that it can increase the efficiency and effectiveness of EBUS Market Players," he said.

Pic : Aris