Scripless trading on JSX to start in January

Scripless trading on JSX to start in January

JAKARTA (JP): All share transactions on the Jakarta Stock
Exchange (JSX) will be settled by PT Kliring Deposit Efek
Indonesia through the netting system beginning on Monday.

"The full application of the netting system to settle all
share transactions is the final step before the introduction of a
scripless trading on the JSX in early January," Bacelius Ruru,
Chairman of the Capital Market Supervisory Agency said yesterday.

Ruru told a news conference that a transition of at least four
months is needed to shift from the netting system to fully
automated trading system.

KDEI's director Sumantri Slamet who also attended the press
meeting said that the netting system had been used since early
this year initially for settling the transactions of four share
issues. It was later extended to sixty issues.

KDEI, the agency responsible for clearing and settling share
transactions on the JSX and the Surabaya Stock Exchange (SSE),
is owned jointly by seven state banks, JSX and SSE.

The main task of KDEI is to improve the efficiency of the
clearing and settlement process in domestic capital markets to
meet the needs of capital market participants as well as the
international standards.

Under the automated trading system, securities certificates
will be immobilized or stored in a central depository to
facilitate the legal transfer of title and eliminate securities
movements in the settlement process.

Ruru hoped that the netting system would soon be introduced on
the SSE and the over the counter market (parallel market).

KDEI invested more than $150,000 in the development of its
soft-ware system and hired about 130 employees, 70 percent of
which are clearing specialists. (icn)