Increase CCP Puva, KPEI Focuses On Increasing Efficiency And International Recognition

Cooperation (Photo: dock. Unsplash)

JAKARTA - President Director of PT Kliring Penjaminan Efek Indonesia (KPEI) revealed that the targets for the development of CCP Puva are targeting to expand the number of clustering members. Currently, transactions at Domestic Non Deliverable Forward (DNDF) do not only involve eight existing banks, but also involve other banks.

With the increase in the number of clearing members, it is hoped that it can increase the volume of transactions as well as experience in terms of more optimal netting.

"First, we want the members of the clearing to increase. So because the transactions in DNDF are actually not only these 8 banks, but there are other banks. That is also our target. Hopefully, the number of clearing members will increase, yes. And we can feel the efficiency together from the netting side. Especially it will feel like it was netting. That's the first," he said at a press conference, Monday, November 25.

Iding conveyed the second target is to innovate with the expansion of new products and services for Repo Interbank transactions, Interest Swap (IRS) Transaction and Overnight Index Swap (OIS) Transaction, and other PUVA instruments.

However, Iding said that his party is also trying to expand the types of instruments that can be screened. Although this requires regulation from Bank Indonesia regarding the types of instruments that can be screened so that it can encourage market liquidity and efficiency,

"This requires arrangements from Bank Indonesia, especially for any instrument or instrument, what else can be played at KPI. That is indeed the authority of the authority at Bank Indonesia. But so far we already have a roadmap," he said.

Iding said that his party is also committed to obtaining recognition from international institutions, including the PFMI Assessment and Application for QCCP Recognition in other international juridiksi. Because this is a demand from a number of market players, such as major banks in America and Europe who want KPEI to be recognized as CCP that meets international standards.

According to Iding, this recognition is not easy, because Europe, for example, will assess the equality of regulations applied in Indonesia and those in Europe. So that KPEI must ensure that the regulations and standards applied are in accordance with international standards and are equivalent to those in these countries.

Despite the big challenges, Iding said that KPEI is committed to realizing these three programs in order to strengthen Indonesia's position in the international market and increase domestic market efficiency.

"This is really challenging. But we will try to make it a commitment from KPEI as well," he concluded.