Remote trading on JSX reaches Rp 4.9t

The Jakarta Post, Jakarta

One year after its commencement, the value of share transactions through remote trading on the Jakarta Stock Exchange (JSX) has reached Rp 4.9 trillion (about US$563 million).

A press release issued by the JSX on Wednesday said there were some 525,241 orders and a transaction volume of 7.9 billion shares.

The release also said that share trading through the remote system in the third week of this month reached Rp 231 billion with a transaction volume of 457 billion shares.

During the week, PT Trimegah Securities was announced as the most active brokerage making transaction with 2,724 transactions, while the highest transaction value was recorded by PT Ciptadana Sekuritas at Rp 67 billion.

Remote trading is a long distance trading system that can be accessed by JSX members, under which any transaction order can automatically be entered into JSX's automated trading system, or JATS, without having to enter orders through the trading floor.

Remote trading, which was first launched on March 28, 2002, is facilitated by the JSX using the host-to-host order system where the JSX facilitates the interface application for its members.

The launching of remote trading was aimed at preventing bottlenecks arising on the manually-operated trading floor which could slow down the transaction process as the floor has limitations in receiving large volume orders.

The entry of an order from sales to the floor trader using the manual system took about 15 seconds, but with the remote trading facility the process can be shortened to less than 8 seconds.

Remote trading was also designed to limit human error during order entry on the trading floor as the executing message from investor to the floor was still received through a phone call which was often unclear.

The difference between remote trading and online trading is in the process of inputting the order. In remote trading, the input process can only be done through a computer located in the member's office.

While in online trading, members input an order through various technological gadgets such as the Internet, mobile phones and automatic teller machines. However, in an online trading, the member must develop its own system and interface to enable increased service for its clients.