OTC Bonds

Trading Mechanism in SPPA

The implementation of Alternative Markets is regulated in the Republic of Indonesia Financial Services Authority Regulation Number 8 /Pojk.04/2019 concerning Alternative Market Organizers. There are 3 (three) trading mechanisms in SPPA, namely:

  1. Central Limit Order Book (CLOB) or Trading Board
    Service Users submit executable quotations to SPPA. The quote will appear on the Trading Board anonymously. Interested Service Users can immediately confirm buy/sell (click to trade) on the quotation on the Trading Board.
  2. Request for Quotation (RFQ)
    Service Users can request quotations from all Transaction Opponents who have Limits with Service Users. The party receiving the RFQ request submits a price quote and can counter each other during the RFQ session. The RFQ process runs anonymously.
  3. Request for Order (RFO)
    RFO can be used for direct negotiations between 2 (two) Service Users in a transparent manner. Both parties conducting the RFO can counter each other during the RFO session.

IDClear's Role in Clearing Development for SPPA

  1. Providing a Clearing System
    IDClearprovides a clearing system (Electronic Bonds Clearing System : e-BOCS)  with features:
    a.    Confirmation/affirmation from clearing participants, both Clearing Participants and Settlement Agents
    b.    Tax calculation
    c.    Reconfirmation of instructions rejected by BI-SSSS.
  2. Providing Clearing Reports
    There are 2 documents obtained by participants as a result of clearing PPA transactions:
    a.    Clearing Result Report (LHK): report containing data on the position of participants' rights and obligations based on the list of transactions in the SPPA (not yet confirmed)
    b.    Clearing Result List (DHK): report of rights and obligations that must be fulfilled after confirmation
  3. Sending Clearing Result Data/Settlement Instructions
    Clearing Results Data/Settlement Instructions are sent to KSEI's BI-SSSS and C-BEST settlement systems directly and interconnectively or with the STP (Straight Through Processing) mechanism.

Benefits of Organizing Clearing at IDClear

  1. The STP process between systems helps monitor EBUS and SBN transactions from the results of transactions occurring at the IDX SPPA, clearing to settlement.
  2. Documents and historical data on the process of confirming obligations/rights for transactions, CTP reference information and the final status of EBUS transaction settlement are available on e-BOCS.
  3. The e-BOCS system helps in direct tax calculations for settlement of funds in EBUS transactions.
  4. The clearing results/settlement instructions are sent directly to KSEI's BI-SSSS and C-BEST settlement systems and there is a reconfirmation feature if there is a settlement instruction that is rejected by BI-SSSS.