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IDX mulls changing pre-closing trading rule
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The trading floor of the Indonesia Stock Exchange (IDX) in Jakarta. (JP/Wienda Parwitasari)
T
he Indonesia Stock Exchange (IDX) is weighing options on changing the pre-closing trading regulation in a bid to enhance transparency.
Pre-closing trading occurs 10 minutes before the close of each trading day or at between 3:50 p.m. and 4 p.m.
During the period, investors are still able to input their stock offers and demands to be calculated by the bourse's system and to be included on the Jakarta Composite Index (IDX).
(Read also: Outlook bright for IDX in 2017)
However, although the inputs affect the index, investors are not able to see the transactions.
"This is to ensure transparency in trading," IDX president director Tito Sulistio told a media briefing on Friday.
The bourse is weighing two options. The first is to disclose the offered and proposed stock price information or the order book, so that investors can still watch the price movement during pre-closing.
The second option is to implement a random market closing through a mechanism that would automatically close trading randomly during pre-closing. This system is implemented by the Thai bourse.
The first option can be immediately implemented if agreed to, Tito said, while the second one would require approval from the Financial Services Authority (OJK).
"We are in process of talking with associations about the new proposed systems," he said, adding that there was no exact timetable for the implementation. (tas)
