JSX to improve market surveillance to enhance integrity
JSX to improve market surveillance to enhance integrity
JAKARTA (JP): The chief executive officer of the Jakarta Stock
Exchange (JSX), D. Cyril Noerhadi, reaffirmed his commitment
yesterday to improve the market's surveillance mechanism to
enhance market integrity.
"We will continuously upgrade our system of trade monitoring
to detect market manipulation or unfair dealings on the market,"
Noerhadi said at an Indonesia-Australia Business Council (IABC)
luncheon.
Market integrity, he said, is vital to the future growth of
JSX which now lists 246 companies with a total market
capitalization of Rp 175 trillion (US$74.78 billion).
Citing an example, Noerhadi said the JSX has been monitoring
Astra share tradings, especially during the last week of massive
transactions.
"But we have found nothing unusual in the price movements of
Astra shares, unlike those of Bank Mashill last April when we had
to temporarily suspend the trading of its shares," Noerhadi
pointed out.
Noerhadi was referring to the massive transactions in Astra
shares during the last week of September. It was disclosed early
this week that the deals were done by the Sampoerna family and
their companies. They now become the largest single shareholder,
owning 12.66 percent of Astra, the country's largest automobile
company.
The luncheon at the Mercantile Athletic Club, which was opened
by IABC's President Sabam Siagian, was attended by about 50
businesspeople.
Noerhadi told the luncheon meeting that the JSX management
will only take action if it finds unusual price movements.
Inspections
According to Noerhadi, regular and surprise inspections of
JSX members are another part of the surveillance mechanism to
ensure that all players comply with the laws and rules of the
capital market.
He said an effective market surveillance mechanism is one of
the JSX management's ongoing programs to make the stock exchange
more attractive to share issuers and investors.
Two other programs include the development of a well-
functioning trading, clearing and settlement system through
scripless and remote trading projects and the dissemination of
timely public information by printed documents and electronic
distribution.
"Since the capital market thrives on information we set high
standards for disclosure. But this information must be processed
and packaged in ways to allow for timely public distribution," he
added.
He also gave a briefing of other programs being planned to
help make the stock market fair, efficient and liquid.
Noerhadi cited the establishment of the Indonesian Securities
Clearing Depository, a clearing and guarantee institution and a
depository and settlement institution as the supporting
infrastructures which will help ensure a well-functioning market.
In addition, he added, scripless and remote trading mechanisms
are being developed.
"We should continue to improve our efficiency because of the
steady increase in trading volume. The daily turnover at the JSX
has increased from 4 million shares in 1991 to 115 million
today," Noerhadi added. (vin)