Team prepares markets merger<\/p>\n
JAKARTA (JP): Executives of the Surabaya Stock Exchange (SSE)
\nand Bursa Parallel Indonesia (BPI), the country's only over-the-
\ncounter capital market, have agreed to form a joint team to
\nprepare a merger of the two exchanges.<\/p>\n
SSE's president, Basjiruddin A. Sarida, said that the team
\nwould prepare the legal foundation for the operation of the
\nmerged exchange, which will blend auction and market maker-driven
\ntrading into a single trading system.<\/p>\n
\"The joint team will work hand in hand with the teams already
\nestablished by the two exchanges,\" Basjiruddin said over the
\nweekend.<\/p>\n
The task of the joint team will include the formulation of the
\nregulations which will govern capital structure, transactions and
\nlistings, as well as the trading system for the unified market.<\/p>\n
BPI was established in 1990 by the Association of Money and
\nSecurities Traders as the first over-the-counter market in the
\ncountry.<\/p>\n
Its operation, however, has not been overly successful, with
\nmost share issuers still preferring to list their stocks on the
\nJakarta or Surabaya exchanges.<\/p>\n
The SSE, established in 1989 as Indonesia's first privately-
\nowned capital market, is more active than BPI. But the exchange,
\nlocated in the capital of East Java province, has so far failed
\nto carry out its mission to promote public listing as a major
\ncapital source for companies in the province.<\/p>\n
The Surabaya market's early operations benefited considerably
\nfrom the government's double-listing policy, which required share
\nissuers to cross-list their shares on both the Jakarta and
\nSurabaya stock exchanges.<\/p>\n
With the abolition of the double-listing policy following the
\nprivatization of the Jakarta stock market in 1992, the Surabaya
\nexchange faltered until the government came to its assistance by
\nlobbying share issuers to retain their cross-listings.(hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/team-prepares-markets-merger-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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