Futures exchange boss threatens to resign
Futures exchange boss threatens to resign
JAKARTA (JP): The president of the Jakarta Future Exchange
(JFX) threatened Tuesday to resign if the government does not
issue the exchange's operating license by the end of this year.
"I will resign because I feel incapable of carrying out the
wishes of the exchange shareholders," JFX President Hasan Zein
Mahmud was quoted as saying by Antara news agency.
He expected his resignation might prompt the government to
issue the license faster.
JFX, established in August 1999, was initially scheduled to
start trading in March. But installation problems with its
computer system, forced the exchange to postpone trade to July.
The exchange then promised to start business in September but
the Commodities Futures Exchange Supervisory Board (Bappebti)
refused to issue its operating permit.
According to Bappebti, the exchange had yet to meet
requirements.
Hasan Zein, who is a former president of the Jakarta Stock
Exchange, said he was in the dark why Bappebti had not issued the
license.
According to him, the exchange had met all technical and non-
technical requirements.
"In fact, if Bappebti requires this and that from us tomorrow,
we'll be ready to comply. We have everything prepared," he added.
"It's like a car that has its engine running and is ready to
drive. The government only needs to blow the whistle to get the
car moving," Hasan said.
He said that the exchange shareholders surrendered up to Rp 17
billion (US$1.8 million) in capital to establish JFX.
"Each month, JFX spends Rp 300 million to Rp 350 million to
cover electricity and telephone bills, but thus far there is no
income," he explained.
JFX director Rico Manayang has said that Bappebti would issue
a license within 45 days of the submission by JFX of documents
stating that all requirements had been meet.
The exchange submitted the documents in July, he said.
Among the necessary requirements were the installment of the
exchange's computer system, which took JFX several months to
complete.
Other requirements were brokers and the commodities futures
contracts.
A futures exchange serves as a centralized location where
buyers' and sellers' agents meet to trade futures on whichever
commodities the particular exchange lists for trading.
JFX plans to trade crude palm oil and Robusta coffee
initially.
Later, the exchange plans to trade pepper, plywood, cocoa and
rubber next year.
JFX further planned to expand futures trading to foreign
exchange, interest rates and government bonds. (bkm)