JSX urges brokers to use new trading facilities

JSX urges brokers to use new trading facilities

Rendi A. Witular, Jakarta

The Jakarta Stock Exchange (JSX) warned securities firms that
are members of the bourse to begin using new remote trading
facilities by the end of 2005, in a bid to improve trading
efficiency.

JSX president director Erry Firmansyah said the use of the
remote trading facilities would be mandatory for securities
firms, and the failure to comply with the order would result in
sanctions.

"We have not decided on the sanctions yet. But for sure,
securities firms, local and overseas-based, are obliged to use
the facilities," Erry said on Wednesday.

He said that with the facilities, securities firms would not
have to place brokers on the JSX trading floor because they would
be able to conduct trading activities online in real-time at
their offices or homes.

Since the launch of a pilot project for the remote trading
facilities on March 28, 23 securities firms have agreed to use
the facilities. The JSX will invite 25 other securities firms to
use the facilities in January, 30 firms in April, 35 firms in
July and the remaining firms in November.

The JSX has invested as much as US$1.8 million to install the
facilities, with a return on the investment expected to be
generated from fees paid by the securities firms.

Erry refused to disclose the amount of the fees.

Several local and foreign-based securities firms have refused
to use the facilities due to the expenses and fear of
malfunctions.

However, Erry guaranteed the facilities would be trouble-free,
saying the bourse had appointed Ernst & Young to audit the
facilities for possible errors and malfunctions.

"Aside from the audit, the JSX has also protected itself from
any claims resulting from the facilities with insurance," said
Erry.

To anticipate any disturbances in the remote trading
facilities, the JSX will provide securities firms with the option
of also placing brokers on the trading floor, he said.

Eyebox

Seven firms to enter IPOs

The president director of the Jakarta Stock Exchange, Erry
Firmansyah, said seven firms would go public with initial public
offerings (IPOs) in October and November.

"The seven firms going for IPOs comprise three local
securities firms, one retail firm, one tire firm and two
manufacturing firms," said Erry.

The JSX initially projected that 20 new firms would be listing
their shares on the bourse. -- JP