JSX sets up clearing and guarantee house

JSX sets up clearing and guarantee house

JAKARTA (JP): The Jakarta Stock Exchange (JSX) and the
Surabaya Stock Exchange (SSX) signed a notarial document
yesterday for the establishment of a new stock clearing and
guarantee house.

The operation of the new institution -- to be called PT
Kliring Penjaminan Efek Indonesia (KPEI) -- is, however, still
subject to approvals from the Ministry of Justice and the Capital
Market Supervisory Agency (Bapepam).

"The JSX will own 90 percent of the planned clearing house's
stake, while the SSX will take the remaining 10 percent," the
JSX's chief commissioner, Fuad Bawazier, told journalists
yesterday.

Fuad said that the planned KPEI will have an authorized
capital of Rp 60 billion (US$25.56 million), with a paid-up
capital totaling Rp 15 billion.

The establishment of a new clearing house is required to
comply with the new capital market law. At present, stock
clearing and settlement activities are handled by PT Kliring
Deposit Efek Indonesia (KDEI).

The law, which came into force early this year, requires that
KDEI's functions as a securities clearing house and settlement
operator must be handled by two different institutions: Lembaga
Kliring dan Penjaminan (LKP) and Lembaga Penyelesaian dan
Penyimpanan (LPP). LKP will operate as a clearing and guarantee
house and LPP will handle share depository and settlement
activities.

It also insists that stock exchanges become controlling
shareholders of the clearing and guarantee house.

The JSX has only a 5 percent stake in PT KDEI, which is
controlled by six state-owned banks.

According to the law, the new clearing house -- which is now
under preparation -- will not only provide clearing services, but
also act as guarantor of any securities transactions.

"I hope that the establishment of the new clearing house will
smoothen the preparation of scripless trading," Fuad said. "I
also hope that the participation of the newly-established
clearing house will boost efficiency of securities transactions
on both the JSX and the SSX," Fuad added.

Meanwhile, a bureau chief at Bapepam, I Nyoman Tjager, said
that the agency has approved the nominations of Surdiyanto
Suryodarmodjo and Mansjurdin Nurdin respectively as the president
and chief commissioner of the planned company.

Nurdin is a director of the central bank, Bank Indonesia,
while Surdiyanto is a director of the state-owned Bank Bumi Daya.

Bapepam also approved Indra S. Hadikoesoemo, a division
manager at KDEI as a director and Noer Dorodjatun, a director of
the state-owned Bank Exim as a commissioner.

Commenting on scripless trading, JSX's president Cyril
Noerhadi, said that it is only possible if the two new
institutions -- LKP and LPP -- have been in operation.

He said, however, that JSX's management has planned to launch
scripless trading early next year.

Cyril said that the JSX, in cooperation with KDEI, has begun a
six-month training program for stock brokers.

"The training, which will be completed in November, is aimed
at improving stock brokers' skills to operate the computer system
to be used in scripless trading," he added.

Cyril declined to explain when the share depository and
settlement agency or LPP would be established, but he hinted that
the current KDEI could change its operational status and operate
as a depository and settlement agency, as required by the law.
(alo)