The Financial Services Authority (OJK) is drafting a regulation on regional securities firms, which is expected to be completed by the end of this year, according to the OJK’s deputy commissioner for stock market supervision, Fahmi Hilmi.

He said such firms were expected to start operations, next year. “We are in the process of seeking input from all stakeholders for the draft regulation,” he said on Tuesday, as reported by kontan.co.id.

Fahmi said the objective of establishing regional securities firms was to improve the involvement of local investors in the financial market and economic players, particularly financial service providers in financing economic activities in the region.

He said the regulation, as currently drafted, would allow any party to establish a regional securities firm, as long as the applicant could meet certain requirements and could operate not only in its respective region, but also in other regions.

Meanwhile, Indonesia Stock Exchange (IDX) president director Inarno Sjayadi expressed his support for the establishment of regional securities companies, saying the IDX would soon prepare the necessary infrastructure to facilitate the operations of such firms.

To support the idea, Inarno added, IDX would establish an information technology firm. “The IT firm is needed to meet the regional securities firms’ need for back office systems,” he said, adding that IDX would soon put the idea into practice.

However, he declined to explain details on the plan, such as the investment required to set up the IT firm. (bbn)