Clearing

Clearing is the process of calculating rights and obligations arising from transactions that have been carried out by Clearing Members on the Indonesian Stock Exchange, and will be completed on the next settlement date. In carrying out the clearing process for futures contract transactions, IDClear carries out Netting, namely fulfilling AK's rights and obligations by handing over or receiving a certain amount of funds being transacted. The futures contract clearing process is carried out per customer per Clearing Member per contract.

At the end of the derivative transaction day, account separation is carried out to record the position of each SID. Contract positions are recorded by netting the same series of futures contracts. In this case, the simulation of the clearing position shows several transactions carried out by the House/AK and the customer. For example, in the case study, House/AK has a position of Long 5 contracts LQ45Z3 and Short 3 contracts LQ45Z3. Meanwhile, the customer's position is Short 2 LQ45X3 contracts and Short 3 LQ45X3 contracts.  

Through netting at the end of the day, the House/AK position becomes Long LQ45Z3 = (5 contracts - 3 contracts) = 2 contracts. Meanwhile, the customer's position after netting becomes Short LQ45X3 = (2 contracts + 3 contracts) = 5 contracts. Thus, the final position recorded on that day was 2 long LQ45Z3 contracts for House/AK and 5 short LQ45X3 contracts for customers.

Clearing Process  Futures Contract Transactions

Clearing Members (AK) who will transact Futures Contracts or to  fulfill their obligations, must place funds into the Security Fund Account (Account 054) and the Main Securities Collateral Account (REU 044), while the  Customer  must also deposit funds in the Securities Sub-Account Collateral (SRE 044) and the Sub-Depository Account (001). KSEI will send data to the E-Clears system (KPEI) and will forward it to the Derivative Clearing and Settlement (SKD) system regarding funds available in the Security Fund Account, Main Security Securities Account and Sub-Account of Collateral Securities in the form of an updated balance.

The funds in the Main Securities Collateral Account after deducting AK's obligations (including customer level obligations) will result in AK's trading limit value. AK gets trading limit information obtained for Futures Contract transactions. Based on the existing trading limits, AK can place orders on the IDX according to the limits provided by IDClear. Then IDX sends  transaction  data  (orders  that  have  been  matched) to the Derivative Clearing and Settlement system. Based on trade data from BEI, IDClear carries out the clearing process by calculating the rights and obligations of AK and its customers in the form of a Clearing Results List.