JAKARTA - PT Bursa Efek Indonesia (IDX) will soon implement a non-cancellation period policy in December as a harmonization step with the best global practice that has been adopted by a number of international exchanges. Non-cancellation period is a special time period during pre-opening and pre-closure sessions on the IDX where orders to buy and/or sell that have entered cannot be changed or canceled, but investors can still submit orders to buy and/or sell new.
In the pre-opening session, the non-cancellation period starts at 08.56.00 until the Jakarta Automated Trading System (JATS) system does a matching. Meanwhile, when pre-closure, the non-cancellation period starts at 15.56.00 until the matching process is complete.
The IDX emphasized that this policy is in line with the standards that have been applied by a number of global exchanges to maintain the quality of the price disclosure process and market stability.
A number of Global Stock Exchanges, such as the Singapore Stock Exchange (SGX), the Hong Kong Stock Exchange (HKEX), the Shanghai Stock Exchange (SSE), and the Philippine Stock Exchange (PSE) have implemented the same thing, so we hope to implement it on the IDX as well," explained IDX Director of Trade and Member Regulation Irvan Susandy in a written statement, Thursday, December 4.
In addition, Irvan explained, this policy was also taken after the IDX conducted a post-implementation review of the development of pre-closing sessions implemented since December 6, 2021.
"Through the implementation of this policy, we hope to reduce the action of forming pseudo prices in pre-opening and pre-closing sessions, as well as minimize potential spoofing actions, thereby increasing the formation of more reasonable prices," he said.
Irvan added that the non-cancellation period is also an IDX's step to reduce the potential for price formation manipulation. This is in line with the IDX's strategy to increase the integrity of the Indonesian capital market and investor protection.
BACA JUGA:
Currently, the IDX is committed to continuing to educate the public, including investors and market players through the IDX's official communication channel. The IDX ensures that market players are educated and understand this policy well, so that they can adjust to transaction activities on the Exchange.
"We have carried out a series of socializations to market participants, especially to Exchange Members and Exchange License Recipients both local and foreign, as well as updating the period non-cancellation information on the IDX Website which can be accessed by the public," he concluded.
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