Trading Hours and Mechanism
Derivatives Trading Mechanism
Derivatives transactions in the Exchange are processed in a facility called as JATS INET. Only the Derivatives Exchange Members can input the orders into the JATS INET. The Exchange Members are responsible for every transaction they make in the Exchange.
Trading Process
There is two Derivatives which can be traded in IDX, that is LQ45 Index Futures and Indonesia Government Bond Futures (IGBF). The Exchange Members are responsible for every derivatives transaction they make in the Exchange. Derivatives Transaction in the Exchange are processed in a facility called as JATS INET. The trading method is Continuous Auction form and the trading method is based on price and time priority. The Exchange Members can submit their bids and asks through the ad board, and they can change or cancel them before they are matched with other bids and asks in the JATS INET. Once they are matched, a transaction is made and will be carried out.
Product
Derivatives Products in Indonesia Stock Exchange is:
| Derivatives | Underlying | Contract Period |
|---|---|---|
| LQ45 Futures | LQ-45 index | 1 month, 2 months, 3 months |
| Indonesia Government Bond Futures (IGBF) |
| 3 months in the March quarterly cycle (March, June, September and/or December) |
| IDX30 Futures | IDX30 Index | 1 Month, 2 Months and 3 Months |
| Basket Bond Futures (BBF) |
| March, June, September, or December |
Liquidity Provider
In Derivatives Trading Mechanism, IDX introduced the new mechanism called Liquidity Provider. Derivatives Exchange Members who also act as Liquidity Provider can submit the quotation (bids and asks) continuously to make Derivatives transaction liquid.
Derivatives Trading
| Derivatives | Multiplier | Tick Size | Initial Margin |
|---|---|---|---|
| LQ45 Futures | Rp500.000 | 0,05 Point Index | 4% * Index Point * Number of Contract * Multiplier |
| Indonesia Government Bond Futures (IGBF) | Rp10.000.000 | 0,01% (1 bp) |
|
| IDX30 Futures | Rp100.000 | 0,1 Point Index | 4% * Index Point * Number of contract * Multiplier |
| Basket Bond Futures (BBF) | Rp1.000.000.000 | 0,01% (1 bp) |
|
Auto Rejection
JATS INET will automatically do the Auto Rejection to the derivatives' price orders input into the JATS INET if:
| Derivatives | Tick Size | Auto Rejection |
|---|---|---|
| LQ45 Futures | 0,05 (1bp) | 10% |
| Indonesia Government Bond Futures (IGBF) | 0.01 (1 bp) | 300bp from reff. price |
| IDX30 Futures | 0,1 Point Index | 10% |
| Basket Bond Futures (BBF) | 1 bp (0,01%) | 600 bp |
Settlement of Derivative Transaction
Settlement of Derivative Products is carried out by the KPEI through the Netting process and held with this provision:
| Derivative | Transaction Settlement |
|---|---|
| LQ45 Futures | 1st Trading Day After Transaction (T+1) |
| Indonesia Government Bond Futures (IGBF) | |
| IDX30 Futures | |
| Basket Bond Futures (BBF) |
The rights and obligations of each Stock Exchange Member relating to Derivatives Exchange Transactions as contained in the exchange transaction list shall be determined by KPEI through the Netting process on each Exchange Day.
Derivatives Transaction Fees
For derivatives transaction, the Exchange Members have to pay fees based on:
| LQ-45 Futures | IDX30 Futures | IGBF & BBF | |
|---|---|---|---|
| Transaction Fee (exclude Clearing and Settlement) | Rp5.000,-/transaction | Rp3.000,-/transaction | Rp10.000,-/contract |
| VAT 12%* (Rate 12% x Tax Basis 11/12 of the Bill Amount)** | 11% from fees | 11% from fees | 11% from fees |
*Paid to the Exchange as compulsory contribution, in accordance to the prevailing provisions.
**Referring to PMK 131 of 2024, VAT Rate is calculated by multiplying Rate 12% of the Tax Base 11/12 of the Bill Amount.
