Computer snag may delay JFX trading<\/p>\n
JAKARTA (JP): A problem in the installation of a computer
\nsystem might cause a delay in the operation of the country's
\nfirst commodities futures operator, the Jakarta Futures Exchange
\n(JFX).<\/p>\n
JFX director Rico Menayang said here on Tuesday that if the
\nproblem could not be settled soon, inaugural trading could only
\nbe started in September, two months behind the initial schedule.<\/p>\n
"It's a tight schedule but we're still optimistic that the
\ndelay will only be about two months," Rico told reporters on the
\nsidelines of a seminar on futures trading.<\/p>\n
JFX, the country's first commodities futures exchange, has
\nreceived government approval to trade olein, a derivative
\ncommodity of crude palm oil (CPO) and coffee.<\/p>\n
Despite the present undeveloped olein industry, the JFX
\ndecided to trade olein, given the commodity's widespread use in
\nthe domestic market, Rico said.<\/p>\n
"The olein market is far larger than that of CPO," he said.<\/p>\n
JFX executive J.W. Sudomo added that domestic demand for CPO
\nwas too high to attract futures traders.<\/p>\n
According to him, CPO offered little potential to gain spread
\nrevenue from speculative trading. "People here buy CPO not to
\nsell it again, but to use it for their factories," Sudomo said.<\/p>\n
Rico said that the JFX planned to include four additional
\ncommodities, that of rubber, plywood, pepper and cocoa to give
\nmore alternatives to investors.<\/p>\n
"We are still waiting for the government's approval to trade
\nin the additional commodities," he said, adding that he hoped the
\napproval could be obtained next year.<\/p>\n
He said that in the long-term, the JFX also planned to expand
\nfutures trading to foreign exchange as well as mining products,
\nsuch as gold.<\/p>\n
The JFX, he said, would cooperate with the Commodity and
\nMonetary Exchange (Commex) of Malaysia in cross trading
\nactivities.<\/p>\n
JFX was established in August 1999, with authorized capital of
\nRp 40 billion (US$4.7 million), and paid-up capital of Rp 11.6
\nbillion.<\/p>\n
Its founders comprise four oil palm plantations, seven palm
\noil refineries, eight securities companies and two general
\ntrading companies.<\/p>\n
The JFX's listed brokers, among others, are PT Batavia
\nFutures, PT Artha Berjangka, PT Dana Graha Futures and PT Gading
\nInternational Berjangka.<\/p>\n
Rico said that the JFX was preparing the brokers by sending
\nthem to study futures trading at the Commex.(bkm)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/computer-snag-may-delay-jfx-trading-1447893297",
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