IDX Will Launch Single Stock Futures In November 2024

IDX Workshop (Photo: Aris Nurjani/VOI)

LABUAN BAJO - Indonesia Stock Exchange (IDX) revealed that it will launch or launch a new product of Single Stock Futures (SSF) in November 2024.

To note, Single Stock Futures (SSF) is a derivative product in the form of contracts or agreements whose value or profit opportunities are related to the performance of other assets. Meanwhile, SSF uses underlying LQ45 Index constituent shares, with 100 contract units.

President Director of the Indonesia Stock Exchange, Iman Rachman, said that the launch of the SSF will be carried out in November because until now there have been three members of the stock exchange (AB) who have obtained permits.

"God willing, 11 November 14, 2024, we will have a grand launching (SSF), there are already 3 stock exchange members for SSF," said Iman in the Capital Market Journalist Workshop, Thursday, October 31.

In addition, Iman hopes that by the time of launch there will be investors who will transact the new product.

Previously, SSF products were planned to launch in the first quarter of 2024, but were delayed because the IDX was still waiting for the right market momentum.

IDX Development Director Jeffrey Hendrik explained that the delay was related to the readiness of derivative exchange members where there was only one derivative exchange member who had obtained permission to organize derivative products trading. While the rest is in the process of becoming a derivative exchange member.

"It should be very close to being ready to be given permission by the stock exchange because the readiness of the system and administration is already in the final stage," said Jeffrey in August 2024.

Meanwhile, SSF is an agreement or contract between the two parties to sell or buy a share at a previously agreed price within a predetermined period of time. There are two types of contracts in SSF:

1. Long Contract (Buy)

SSF investors will benefit if the share price at the time of maturity of the contract rises because investors have locked down lower purchase prices than higher prices in the market.

2. Short Contract (SELL)

SSF investors will benefit if the spot price drops because investors have locked the selling price higher than the price in the lower market.