Surabaya bourse and Nasdaq sign MOU<\/p>\n
JAKARTA (JP): Nasdaq International Market Initiative (NIMI) of
\nthe United States agreed here yesterday to help the Surabaya
\nStock Exchange improve its trading.<\/p>\n
Under a memorandum of understanding signed by Nasdaq senior
\nassociate Michael J. Kulczak and the exchange's president
\nIsakayoga CH, NIMI will provide technical assistance to improve
\nthe exchange's trading system.<\/p>\n
Isakayoga said NIMI -- a subsidiary of Nasdaq, the New York-
\nbased over-the-counter market -- would introduce a market making
\nsystem at the exchange.<\/p>\n
\"We hope the new system will be able to improve the liquidity
\nof the market,\" he said after signing the memorandum.<\/p>\n
The Surabaya exchange was established in 1989 as the first
\nprivately-owned stock market in the country, and the only stock
\nmarket outside Jakarta.<\/p>\n
The exchange lacks liquidity because investors prefer to trade
\nshares through the Jakarta Stock Exchange. Most shares listed on
\nthe Surabaya exchange are also traded on the Jakarta exchange.<\/p>\n
The Surabaya exchange took over the country's Bursa Paralel
\nIndonesia, the country's only over-the-counter market, last year
\nto improve its market base. But liquidity remains a problem even
\nthough the exchange uses a combination of auction and market
\nmaking systems.<\/p>\n
Kulczak said the memorandum would help the Surabaya exchange
\nmove from being a small-dealer market to a national-dealer
\nmarket.<\/p>\n
NIMI's technical assistance will include trading strategies,
\ntraining programs and consistent monitoring mechanisms for market
\nmakers on a day-to-day basis, Kulczac said.<\/p>\n
NIMI will also be able to help Indonesian listed companies
\nseek a dual listing on Nasdaq and other U.S. stock markets, he
\nsaid.<\/p>\n
NIMI will provide information on the listing requirements that
\nIndonesian companies must meet to float their shares on Nasdaq or
\nthe New York Stock Exchange.<\/p>\n
On accounting and disclosure procedures, Kulczac said,
\nIndonesian companies could seek assistance through Nasdaq
\nInternational Limited, like Tri Polyta and Inti Indorayon which
\nare already listed on Nasdaq.<\/p>\n
Indonesian companies will be able to list on the Surabaya
\nexchange before listing in the United States, he said.<\/p>\n
Isakayoga said NIMI was expected to provide technical
\nassistance to encourage small and medium companies to float their
\nshares on the Surabaya exchange.<\/p>\n
Nasdaq, established 1971, has grown from an over-the-counter
\nmarket to the most active screen-based trading market in the
\nworld, with 800 million shares traded daily, he said.<\/p>\n
Kulczak said his company would work with the exchange to
\nassess business plans and existing business technology systems
\nnext January. (01)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/surabaya-bourse-and-nasdaq-sign-mou-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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