Support Central Counterpaty Development, IDX Increases Alternative Market Organizer System

JAKARTA - PT Bursa Efek Indonesia (IDX) said it was developing an Alternative Market Organizing System (SPPA) to accommodate foreign exchange and exchange transactions, especially repository transactions (REPO). The SPPA is an electronic platform to facilitate the trading of Debt and/or Sukuk (EBUS) securities in the secondary market.

"The IDX is currently developing SPPA to accommodate PuvA transactions, especially REPO transactions with underlying state debt securities or SUN," said IDX President Director Iman Rachman at the 2024 Extraordinary General Meeting of Shareholders (EGMS), Wednesday, October 23.

Iman menyampaikan pengembangan transaksi repo ini telah dilakukan sejak tahun 2024 dengan melibatkan pelaku pasar keuangan yang terdiri pada bank umum, securities dan Bank Pembangunan Daerah (BPD).

"The development of this repo is of course connected with the OJK, as the SPPA regulator, and Bank Indonesia, as the financial market regulator. Where the implementation of this repo transaction is carried out in stages in 2024-2025," he said.

With a system readiness plan in 2024. Iman said that he would make SPPA a pool of liquidity to stakeholders in the debt securities market and money securities market so that market participants can access the same application to transact debt securities, including repo transactions.

In addition, Iman said that SPPA is also designed to increase the efficiency and effectiveness of debt securities trading and money markets because later SPPA is expected to be integrated with reporting, integrated with the KPEI Central Counteracy (CCP), as well as other supporting systems. So that market participants can take advantage of straight through processing (STP).

Similarly, Director of Trading and Regulation of Share Members of PT Bursa Efek Indonesia (IDX) Irvan Susandy said that since PT Kliring Penjaminan Efek Indonesia was appointed by Bank Indonesia to become CCP, in line with this, his party is developing SPPA as a platform for debt securities transactions, especially repo.

Currently, the use of SPPA in debt securities transactions is increasing. It is recorded that the transaction value at SPPA in 2024 has reached almost 15 percent of all bond transactions reported at the Recipient of the Securities Transaction Report (PLTE).

"So by value, 15 percent of all bond transactions reported at PLTE have been carried out at our SPPA. That one of the strategic programs next year is working with the DGT to provide Sustainability Linked Bond (SLB) for debt securities," he explained.

Irvan said that in collaboration with DGTPR, it is hoped that it will encourage more SPPA users. Currently, there are around 38 SPPA users, consisting of banks, BPD, money brokers, and securities, Where in 2024 it will reach 38 or increase from 33 users last year and 31 users in 2022.

Irvan said it was hoped that SPPA could be used more by debt securities market players because of more efficient services. Transactions at SPPA will be automatically reported to PLTE, and for bond repo, will be directly processed to CCP and reported to BI for completion.