Phintraco Sekuritas Has Received Liquidity Provider Share License From IDX, AB Can Now Take A Strategic Role

PT Phintraco Sekuritas became the first Exchange Member to obtain a Liquidity Provider Share License from the Indonesia Stock Exchange (IDX). This step marks the start of the implementation of the Liquidity Provider Stock policy as regulated in Exchange Regulations Number II-Q and III-Q, as well as opening up opportunities for Exchange Members to take a strategic role in strengthening capital market liquidity.

"Currently, the party that can become a Liquidity Provider of Shares is a Exchange Member who has met the criteria according to Exchange Regulation Number III-Q concerning Stock Liquidity Provider," said IDX Director of Trade and Member Arrangement Irvan Susandy in a written statement, Wednesday, November 5.

Meanwhile, Regulation III-Q regulates requirements and procedures for Exchange Members who wish to become Liquidity Providers of Shares. A number of requirements that must be met by Exchange Members to be able to become Liquidity Providers of Share include, the status of Exchange Members who are not currently in a state of suspension, a minimum of Clean Work Capital Adjusted (MKBD) worth IDR 100 billion, have Standard Operating Procedure (SOP) internal policies, and systems for the delivery of Liquidity Provider Shares quotas.

"By becoming a Liquidity Provider of Shares, Exchange Members play a strategic role for investors to be able to provide liquidity guarantees in the market as well as for listed Companies so that the price disclosure process can be carried out in accordance with the entertainment value," he said.

The IDX has also prepared three special incentive alternatives for Exchange Members who join as Stock Liquidity Providers, namely the option to cut transaction fees, the cash incentive option per month, and the option to choose more shares that can be quotated. Later, the incentives will consider fulfilling daily obligations carried out by Liquidity Providers of Shares.

"We hope that Liquidity Provider Shares can improve market deepening and quality, especially in the formation of more reasonable stock prices and can reduce the bid-ask spread in stocks with low liquidity," he added.

Meanwhile, President Director of PT Phintraco Sekuritas Ferawati stated that his party is ready to play a Liquidity Provider of Shares, both infrastructure and human resources, and is committed to carrying out the function of providing liquidity in a sustainable manner. He believes that the Liquidity Provider of Shares has a strategic role in supporting the main goal of the IDX, namely increasing liquidity, efficiency, and transparency of the capital market.

"The presence of Liquidity Provider Shares encourages more stable trade and an increase in transaction volume, so that Indonesia's capital market becomes healthier, more competitive, and attractive to retail and institutional investors," said Fera.

Currently, continued Fera, his party is conducting an assessment with several listed companies with the potential to participate in the Liquidity Provider of Shares program. Phintraco Sekuritas has started contacting listed company relations investors, especially those on the Stock Liquidity Provider list with good fundamentals but limited liquidity, as well as following up on the interests of several listed companies that have not been included in the Liquidity Provider Shares list.

"We hope that the presence of Liquidity Provider Shares can increase the liquidity and depth of the Indonesian stock market, so that transactions are more efficient and stock prices reflect reasonable values," he concluded.