Equities

Clearing

At the Indonesia Stock Exchange (IDX), the most frequently traded equity products are stocks, warrants, rights to purchase securities in advance (HMETD), and exchange-traded funds (ETFs). Stocks represent proof of capital ownership in a company, entitling holders to income, assets, and voting rights at the General Meeting of Shareholders (GMS).

Warrants grant holders the right to purchase company shares at a specified price within a minimum period of six months. HMETD are transferable rights attached to shares, allowing existing shareholders to purchase new securities (stocks, convertible securities, or warrants) prior to offering them to others.

ETFs are mutual funds in the form of collective investment contracts whose participation units are recorded and traded on the exchange like stocks. Currently, exchange transactions remain dominated by equity products, particularly stocks, due to their more understandable risk profile compared to derivatives, while bond transactions are predominantly conducted off-exchange (over-the-counter).

  • Equity Transaction Clearing angle-down

    All equity products traded on the Indonesia Stock Exchange (IDX) are cleared by IDClear. The clearing method applied depends on the selected market type. Transactions in the Regular Market and Cash Market use netting, while those in the Negotiated Market employ per-transaction clearing.

    Netting Clearing

    Netting clearing offsets all buy and sell transactions of Clearing Members (CMs), resulting in each CM having only one net position for fund delivery/receipt and one net position per securities type on the settlement date.

    IDClear calculates positions down to the client level and issues the Clearing Results List (CRL), detailing portfolios and specific rights/obligations for funds and securities of CMs and their clients. CRLs for the regular market are available until 19:30 WIB, and for the cash market until 12:45 WIB on trade date.

    Meanwhile, the flowchart of equity product clearing at the level of Clearing Member Customers:

    Per-Transaction Clearing

    Equity transactions conducted in the Negotiated Market are cleared individually, ensuring that the rights and obligations of the buyer and seller are fulfilled directly for each transaction without consolidation with others. IDClear still issues the Clearing Results List (CRL), which Clearing Members (CMs) can download at 19:30 WIB on the same day.

    Settlement in the Negotiated Market is not guaranteed by IDClear, as prices are determined by mutual agreement between the parties. The entire clearing and reporting process is executed through the EAE web application, which is also used for securities lending and borrowing services and accessed by CMs/Banks Custodians using user ID, password, and keyfile.

    For detailed explanations of equity securities clearing transactions as per IDClear  Regulations, click here.

  • Equity Transaction Clearing for Designated Stocks angle-down

    Designated Stocks (ETD) are determined by IDX and IDClear based on specific requirements. Designated stocks’ transaction settlements are not guaranteed. Exchange transactions that are categorized as ETD transactions, will be settled through negotiation by using trade for trade method. IDX and IDClear set several criteria for ETD, which consists of:

    • Composition and concentration of securities ownership
    • Pattern and volume of securities
    • Frequency of securities transactions
    • Price fluctuation of securities
  • Equity Transaction Clearing for Isolated Stocks angle-down

    Isolated Transactions (TD) are transaction which are separated from the exchange transaction settlement guarantee under the terms set by IDX and KPEI on Indonesia FSA’s approval or under the orders of the Indonesia FSA. An exchange transaction may be categorized as a TD by the Indonesia FSA's decision is due to one or several things as follows:
    1. There is a likelihood that the transaction could not be settled
    2. There is an indication that the transaction is unusual/abnormal
    3. The transaction has high risk and has the potential to jeopardize the market integrity 
    4. Other indication in accordance with KPEI Regulation

    If there are indications that there is/are transaction(s) that meet TD categories above, then IDClear will do the following:
    1. Delay the TD clearing process 
    2. Publish TD Reports
    3. Publish TD CRL
    4. A review by the Indonesia FSA will be performed for an unspecified time to assume the normalcy/fairness of
       the transaction 

    If the results of the Indonesia FSA review determined that the TD is a fair transaction, the settlement method will be done by netting and combined with netted position at that time. Conversely, if the transaction is concluded as unfair then KPEI will settle it by trade for trade clearing. For the two scenarios above, KPEI will republish CRL for the TD.

    A detailed explanation of ETD and TD transactions can be viewed in KPEI Rule Number II-15 and Indonesia FSA Regulation No. 26/POJK.04/2014.

    CLEARING OF EQUITY TRANSACTIONS SIMULATION (STOCKS):

    Date Buy Sell Clearing
    26 November 2021 CM X buys ASII 4.000 shares at Rp8.000 with transaction valued at Rp32.000.000 from CM Y CM X sells ASII 5.000 shares at Rp8.000 with transaction valued at Rp40.000.000 to CM Z  
    AK X buys TLKM 3.000 shares at Rp5.000 with transaction valued at Rp15.000.000 from CM Y AK X sells TLKM 1.000 shares at Rp5.000 with transaction valued at Rp5.000.000 to CM Z
    28 November 2021     Netting for ASII: CM X conduct securities submission 1.000 shares of ASII to KPEI and receive cash valued Rp8.000.000 from KPEI
    Netting for TLKM: CM X conduct cash submission valued Rp10.000.000 to KPEI and receive securities 2.000 shares of TLKM from KPEI