Financial Derivative
Derivatives found on the Stock Exchange are financial derivatives where the underlying assets are financial instruments such as shares, bonds, domestic/foreign stock indices, bond indices, and others in accordance with regulations. Derivative instruments are often used by market players as a means of hedging their portfolios.
Legal basis
- Law Number 8 of 1995 concerning Capital Markets as amended by Law Number 4 of 2023 concerning Development and Strengthening of the Financial Sector.
- Financial Services Authority Regulation Number 32/POJK.04/2020 concerning Securities Derivative Contracts
Financial Services Authority Regulation Number 3/POJK.04/2021 concerning the Implementation of Activities in the Capital Market Sector. - Financial Services Authority Regulation Number 1 of 2025 concerning Financial Derivatives with Underlying Assets in the Form of Securities.
- Letter from the Head of the Capital Market Supervision Department 2A Financial Services Authority Number: S-1245/PM.21/2020 dated 1 December 2020 regarding Product Approval of KBIE LQ-45, KBIE IDX30, KBSUN, and KBSSUN.
- Financial Services Authority Letter Number: S-115/PM.02/2024 dated 30 January 2024 concerning Approval of Futures Contracts with Underlying Shares (Single Stock Futures).
- Financial Services Authority Letter Number: S-175/D.04/2024 dated 30. December 2024 concerning Approval of Foreign Index Futures Contracts.
- IDX Regulation Number II-E concerning Futures Contract Trading.
- IDClear Regulation Number III-2 concerning Clearing and Guarantee of Settlement of Futures Contract Transactions.