Capital Market Reform: IDX Prepares to Review FCA Trading in Second Quarter
Jakarta (ANTARA) — The Indonesia Stock Exchange (IDX) has stated it will conduct an evaluation of the Full Call Auction (FCA) share trading system in the second quarter of 2026, as part of Indonesia's capital market reform agenda.
FCA is a share trading mechanism in which buy and sell orders are collected over a specified period, then executed simultaneously at a single determined price. The price is based on the equilibrium point between supply and demand.
"In line with all our policies, we conduct periodic reviews, and FCA is among those we are reviewing. We see room for refinement or improvement," said IDX Acting Chief Executive Jeffrey Hendrik in a doorstop interview following a press conference at the IDX Building in Jakarta on Friday.
Jeffrey explained that enhanced data transparency, including granularity of share ownership and the adjustment of free float rules to 15 per cent, could potentially alter the need for some of the criteria currently used as the basis for placing issuers on the special monitoring board.
Consequently, the capital market reform agenda is also driving the need for adjustments to the FCA trading system.
"With higher transparency, the impact is naturally significant. We need to reassess whether some or all of the special monitoring board criteria are still necessary," Jeffrey said.
Regarding potential changes to the trading mechanism for shares classified under FCA, Jeffrey indicated that a shift from auction back to continuous trading remains an open option.
"Back to auction? Back to continuous? It's very possible. But the point is, FCA will be reviewed. The process is underway," Jeffrey said.
Jeffrey continued that the direction of adjustments to the FCA trading system leans more towards simplification rather than addition.
"Most likely a reduction — there won't be any additions," Jeffrey said.
As for the detailed mechanics, including whether the auction format would be retained or replaced, he noted that discussions are still ongoing internally at the IDX.
"We will review that and communicate it in due course," Jeffrey said.
Jeffrey has targeted the FCA trading system review to take place in the second quarter of 2026.
For now, the exchange remains focused on capital market development in response to concerns raised by global index providers such as FTSE Russell and MSCI.
"At present, we are still focused on developments related to FTSE and MSCI. The FCA review will be conducted at the earliest in the second quarter," Jeffrey said.
Jeffrey assured that the IDX, with the support of the Financial Services Authority (OJK), will continue working to complete the full range of reforms, including improving trading effectiveness, enhancing liquidity quality, and strengthening investor protection.
"We will keep working towards that," Jeffrey said.
FCA is a share trading mechanism in which buy and sell orders are collected over a specified period, then executed simultaneously at a single determined price. The price is based on the equilibrium point between supply and demand.
"In line with all our policies, we conduct periodic reviews, and FCA is among those we are reviewing. We see room for refinement or improvement," said IDX Acting Chief Executive Jeffrey Hendrik in a doorstop interview following a press conference at the IDX Building in Jakarta on Friday.
Jeffrey explained that enhanced data transparency, including granularity of share ownership and the adjustment of free float rules to 15 per cent, could potentially alter the need for some of the criteria currently used as the basis for placing issuers on the special monitoring board.
Consequently, the capital market reform agenda is also driving the need for adjustments to the FCA trading system.
"With higher transparency, the impact is naturally significant. We need to reassess whether some or all of the special monitoring board criteria are still necessary," Jeffrey said.
Regarding potential changes to the trading mechanism for shares classified under FCA, Jeffrey indicated that a shift from auction back to continuous trading remains an open option.
"Back to auction? Back to continuous? It's very possible. But the point is, FCA will be reviewed. The process is underway," Jeffrey said.
Jeffrey continued that the direction of adjustments to the FCA trading system leans more towards simplification rather than addition.
"Most likely a reduction — there won't be any additions," Jeffrey said.
As for the detailed mechanics, including whether the auction format would be retained or replaced, he noted that discussions are still ongoing internally at the IDX.
"We will review that and communicate it in due course," Jeffrey said.
Jeffrey has targeted the FCA trading system review to take place in the second quarter of 2026.
For now, the exchange remains focused on capital market development in response to concerns raised by global index providers such as FTSE Russell and MSCI.
"At present, we are still focused on developments related to FTSE and MSCI. The FCA review will be conducted at the earliest in the second quarter," Jeffrey said.
Jeffrey assured that the IDX, with the support of the Financial Services Authority (OJK), will continue working to complete the full range of reforms, including improving trading effectiveness, enhancing liquidity quality, and strengthening investor protection.
"We will keep working towards that," Jeffrey said.