IDX Implements Full Call Auction Special Monitoring Board On March 25, 2024

Illustration. (Photo: Doc. Antara)

JAKARTA - After conducting a series of evaluations and implementation of the first phase in a hybrid manner, the Indonesia Stock Exchange (IDX) is ready to implement a full periodic auction trading mechanism or full call authorization on a special monitoring board on March 25, 2024. IDX Development Director Jeffrey Hendrik said the move was in line with the Exchange's commitment to increase liquidity and investor protection in the Indonesian capital market.

The first phase of special monitoring has been running smoothly. We hope that market players and investors are familiar with the trading mechanism for stocks that enter special monitoring boards, because in the implementation of this second stage of special monitoring board, all shares will be traded in full call authorization," Jeffrey said in a written statement, Thursday, March 21.

Previously, the IDX had launched a first-stage special monitoring board in a hybrid call authorization on June 12, 2023. At that stage, there are still 2 trading mechanisms applied to special monitoring board stocks, namely the continuous auction trading mechanism and call authorization trading mechanism for stocks that meet certain criteria on special monitoring boards.

In this second stage, all stocks that meet the criteria on special monitoring boards will be traded using the call authorization mechanism. In contrast to the implementation of the first phase, namely in a hybrid manner, where stocks are exposed to liquidity criteria that are traded periodically call authorization," said Jeffrey.

Jeffrey explained that shares in the special monitoring board will be fully traded in 5 sessions for Monday - Thursday, as well as 4 sessions for Friday with session 3 records removed and Session 2 extended to 11.30 WIB.

"At the full call authorization stage, shares on special monitoring boards can be traded up to a minimum price of IDR 1. Auto Rejection for shares at a price of IDR 1-IDR 10 is IDR 1, while for shares with a price above IDR 10 it is 10 percent," he added.

With its full implementation, Jeffrey said that special monitoring boards can provide alternative segmentation of listing boards that are more in accordance with investor investment strategies and provide transparency over the company's condition.

"Special monitoring standards are also expected to increase transactions and trade liquidity, especially stocks with low trading frequency and at a price of IDR 50 with a special trading mechanism, as well as minimize the formation of unreasonable prices and a more appropriate price disclosure process for stocks with low liquidity," he concluded.