IDX Officially Launches Single Stock Futures Products

Inauguration of the single stock futures (Photo: IDX)

JAKARTA PT Bursa Efek Indonesia (IDX) together with the Self-Regulatory Organization consisting of PT Kliring Penjaminan Efek Indonesia (KPEI) and PT Kustodian Sentral Efek Indonesia (KSEI), as well as the Financial Services Authority (OJK) officially launched a new derivative product, namely the Stock Future Contract (KBS) or better known as Single Stock Futures (SSF).

Meanwhile, SSF is a new derivative product in the form of an agreement or contract between the two parties to sell or buy a stake in the future at a predetermined price. SSF has advantages over other investment products.

To note the first advantage of SSF is that investors can do hedging on the portfolio of underlying stock price movements.

Furthermore, SSF can also be used as an investment alternative for investors for profit optimization facilities, both when the market is bullish and bearish. Investors can take a purchase position (long) when the market is bullish or in a selling position (short) when the market is bearish to gain potential profits.

Then, the funds needed by investors are much smaller than buying shares directly, because SSF is transacted in leverage. Also, the realization of investor profits was obtained faster because the completion of SSF was completed in cash in 1 Exchange Day (T+1).

In addition, just like other products transacted through the IDX, SSF trading on the IDX is a safe and transparent transaction because it is transacted in real time on the Exchange, supervised by the IDX and OJK, and the completion of transactions is guaranteed by KPEI.

On the other hand, SSF was launched using members of the LQ45 Index as constituents underlying. The underlying SSF is 5 (five) liquid and has good fundamentals, namely BBRI, BBCA, MDKA, TLKM, and ASII.

The investors who want to transact SSF can open a derivative account at the Exchange Member Securities Company (AB) which has obtained a permit as a derivative AB.

Where at the launch, there were 3 AB derivatives, namely PT Binaartha Sekuritas, PT Ajaib Sekuritas Asia, and PT Phintraco Sekuritas. Meanwhile, PT Binaartha Sekuritas also acts as Liquidity Provider for SSF trading in the secondary market.

IDX President Director Iman Rachman in his speech said that his party will continue to disseminate and educate investors to get to know and understand trade mechanisms better, as well as potential risks and returns in investing in future contracts.

"BEI will always be adaptive and innovative in developing variations of non-share products, including derivative products, so that it can be used by Indonesian capital market investors to optimize profits," he said in the grand launching of SSF products, Tuesday, November 12.

In addition, Iman also invited AB to be active in derivative trading on the IDX. Currently, there are only 3 Exchange Members who have provided single stock futures trading facilities, namely PT Binaartha Sekuritas, PT Phintraco Sekuritas, and PT Ajaib Sekuritas Asia.

"Hopefully after this there will be more stock exchange members who participate in enlivening derivative trade by becoming members of the derivative market," he added.

On the same occasion, IDX Development Director Jeffrey Hendrik hopes that with the launch of SSF, investors can use it as an alternative investment product.

"Investors can optimize their investment profits with SSF through capital gains and can become hedging when the market is bearish," he said.

Jeffrey hopes that the presence of SSF can increase public interest in investing in the Indonesian capital market so that it can support increased liquidity, total investors, and capital market resilience in future global market fluctuations.