JSX to start scripless trading system in March

JAKARTA (JP): The Jakarta Stock Exchange (JSX) will introduce a scripless trading system in March next year in a bid to speed up transactions, according to the exchange's president, Mas Achmad Daniri.

"We have everything in place and I am sure we will be ready for it in March next year," Daniri told a press briefing on Thursday.

He said that the increasing volume of daily stock transactions, a result of the current bullish market and big rights issues, had increased the urgency to put the long-awaited scripless trading system into operation.

"The physical work-load is so enormous now that it involves a volume of over one billion stocks changing hands every day," he said.

In a scripless trading system, stock ownership is recorded as electronic data rather than on paper certificates, and purchases are made through electronic transfers between accounts.

All accounts are linked by a central custodial system.

Daniri said JSX would also increase the size of a trading unit (lot) from 500 shares to 5,000 shares to ease the physical settlement work.

He said the larger trading unit would first be used in the banking sector.

"This is to release some of the work pressure, while waiting until the scripless trading is in effect," Daniri said.

However, the existing 500-share lots, he said, are still valid and can be traded through the negotiating market.

The volume of shares in the banking sector has reached billions, after many listed banks launched big rights issues to allow them to join the government-sponsored recapitalization program.

Asked about the fate of listed companies included on the Indonesian Bank Restructuring Agency's list of 26 recalcitrant debtors, Daniri said his office had sent letters demanding explanations from the management of each company.

The companies included on the list are PT Duta Anggada, PT Mas Murni Indonesia, PT Putra Surya Multidana, Putra Surya Perkasa and PT Semen Cibinong.

"We want their comprehensive explanations on their inclusion in that list within 48 hours," Daniri said, but added that no strict measures, such as delisting companies, would be made easily.

IBRA published the names of 26 companies after they failed to meet a June 30 deadline to sign letters of commitment with the agency stating their readiness to have their debts restructured. (udi)