Index-linked futures trading to open on SSX<\/p>\n
JAKARTA (JP): The Surabaya Stock Exchange (SSX) will introduce
\ntrading in futures contracts next year to provide greater
\ninvestment opportunities on the country's second stock market.<\/p>\n
The president of the SSX, Anton Natakoesoemah, said here on
\nTuesday the futures contracts would be based on the LQ45 Index,
\nthe price barometer of the 45 most actively traded shares on the
\nJakarta Stock Exchange.<\/p>\n
"Investors can use the index-linked futures contracts as their
\nequity investment hedging tools," Anton said following the
\nsigning of a cooperation agreement between the SSX and JSX.<\/p>\n
Under the agreement, the Surabaya bourse will be allowed to
\nuse the LQ45 Index as the reference for its futures contract
\ntrading.<\/p>\n
JSX president Mas Achmad Daniri welcomed the launch of futures
\ntrading, saying it would enable investors to protect their
\ninvestments.<\/p>\n
"Investors can offset the risk exposure of taking a bullish
\nview in their equity investments by taking a bearish view through
\na futures index contract," he said.<\/p>\n
Daniri also praised the use of the LQ45 Index as the reference
\nfor futures trading, saying the index reflected the prices of the
\nmost actively traded shares on the exchange.<\/p>\n
Shares included in the LQ45 Index currently account for some
\n80 percent of total daily trade on the JSX and are reviewed every
\nsix months to ensure they meet minimum standards.<\/p>\n
Anton said the JSX would soon seek the approval of the Capital
\nMarket Supervisory Agency (Bapepam) for the index-linked futures
\ncontracts trading.<\/p>\n
"After receiving Bapepam's approval, we will go abroad to
\nconduct a comparative study of countries that already have
\nexperience in such futures contracts trading," he said.<\/p>\n
Most of the shares listed on the SSX are cross-listed with the
\nJSX. The SSX also will began trading government bonds next year.
\n(udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/index-linked-futures-trading-to-open-on-ssx-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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