Equities

In accordance with the Financial Services Authority Regulation No. 26/POJK.04/2014, the Clearing and Guarantee Institution (LKP) must ensure that Clearing Members (AK) have sufficient collateral, which is controlled by the LKP, before placing any exchange transaction orders. Therefore, IDClear establishes transaction limits (trading limits) that can be used daily before AK can perform transactions on the IDX.

The transaction limits applied by IDClear include Pool Limit, Market Limit, and Position Limit, as explained below:

• Pool Limit
  This is the limit on the transaction value that can be used by AK. Each transaction order entering from each market will be validated against the pool limit. If the pool limit is insufficient, the order will be rejected.
• Market Limit
  This is the transaction value limit applied to each market based on the free collateral value of AK.
• Position Limit
  This limit is specifically applied to the Derivatives market. The position limit is only triggered if the AK has transaction restrictions imposed by IDClear, meaning that the AK can only execute offsetting transactions for positions that have not been settled. Transaction limits are a policy set by IDClear to restrict transactions by AK based on the potential failure to settle exchange transactions or other negative information. The purpose of these limits is to prevent larger failures that could endanger the market.

In calculating these transaction limits, IDClear uses a risk management system called RAZOR. The transaction limit values issued will be sent to the IDX's trading system (JATS Next-G), which will then be forwarded to each AK. Additionally, the limit values can be viewed in the member interface system, which AK can directly access via the web.