Scripless trading to boost markets

Scripless trading to boost markets

JAKARTA (JP): The transaction volume of trading in the Jakarta
and Surabaya stock markets is expected to triple when scripless
trading is introduced next June.

Scripless Trading Committee Chairman Surdiyanto Suryodarmodjo
said here yesterday that scripless trading would allow investors
and brokerage firms to transfer shares and funds through an
electronic system.

"When scripless trading is introduced, transaction volume is
expected to increase.

"Scripless trading will enable people to use the electronic
transaction system without having to deal with the stocks
physically," he said.

When Malaysia introduced its scripless trading system several
years ago, the transaction volume and value increased by almost
500 percent, he said.

The system will enable people to transfer shares and funds
more smoothly and quickly through an assigned custodian bank.

He said that currently a brokerage firm, for example, had to
deliver stocks physically to the seller, and the seller had to
deliver the funds to the buying brokerage firm.

"There will a big difference when the scripless trading
introduced."

He said the scripless trading committee was finalizing
preparations for the trading.

"Hopefully, everything will be completed by early December."

The committee is also preparing to set up a new company to
take charge of transaction settlements in the stock market.

Surdiyanto said the company would take over the tasks of PT
Kliring Deposit Efek Indonesia which was liquidated early this
month.

"But we do not have details of the new company yet," he said.
(aly)