Central IDX Prepares New Single Stock Futures Derivative Products

Illustration (Photo: Doc. ANTARA)

JAKARTA - PT Bursa Efek Indonesia (IDX) is preparing a new derivative product, namely Single Stock Futures (SSF), which will be launched in the near future.

The launch of the SSF will add to the variety of derivative products that the previous exchange has, namely LQ45 Futures, IDX30 Futures, Indonesian Government Bond Futures, and Basketball Bond Futures.

IDX Development Director Jeffrey Hendrik explained that SSF is an agreement or contract between the two parties to sell or buy a stake in the future at a predetermined price.

"Unlike other IDX derivative products based on stock indexes and state debt securities, the effect that underlies SSF is shares. SSF also has the lowest contract units compared to other derivative products, so the capital that investors need to be able to start investing in SSF is smaller," he said in a statement in Jakarta, Friday.

As a derivative product, Jeffrey emphasized that SSF offers various benefits that cannot be found in other investment instruments.

One of them is low transaction capital, which investors can buy shares only by paying a minimum of four percent of the capital issued if they buy ordinary shares. The minimum capital requirement can also be set higher by stock exchange members.

"The SSF also provides opportunities for investors to protect the value of the portfolio and gain profits both at the time the market goes up and down. If market conditions are experiencing a downward trend, investors can take short positions and take advantage if the shares underlying the SSF also experience a decline in prices, and vice versa," he said.

In addition, Jeffrey added, his party will continue to hold a series of socialization activities so that capital market investors have a deep understanding of derivative products on the IDX and start utilizing these products to optimize profits.

"At the end of 2023 we have held socialization regarding non-share products including derivatives in the cities of Surabaya and Medan. We have also held Structured Product Day events in November 2023 online to introduce non-share products," he said.

In addition, Jeffrey said, the stock exchange will always be adaptive and innovative in developing variations of non-share products, including derivative products, so that it can be utilized by Indonesian capital market investors to optimize profits.

"We are always open to receiving input from market players so that the products developed by the IDX are right on target to meet the needs of Indonesian capital market investors," he said.