JSX to start scripless trading system in March

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)