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)