PT Bursa Efek Indonesia (IDX) launched a new feature of repo transactions on the Alternative Market Organizer System (SPPA). This launch is in line with the SPPA development roadmap and aims to improve the efficiency, effectiveness, and liquidity of debt securities and money market trading by banks, regional development banks (BPD) and securities companies. The Alternative Market Trading System (Sistem Penyelenggara Pasar Alternatif – SPPA) is a trading platform for the secondary market for Indonesian debt securities and Sukuk.
With the launch of this repo transaction feature, SPPA Service Users can obtain the benefit of a facility to conduct repo transactions using underlying debt securities, especially government securities (SUN). This repo transaction will complement the outright transaction feature (outright sale) which is currently available on the IDX SPPA platform.
IDX Development director Jeffrey Hendrik said in a statement: “Repo transactions with underlying SUN on the same platform as SUN buying and selling transactions will make SPPA a pool of liquidity for debt securities trading in Indonesia. This will make it easier for banks, BPDs, securities companies and money brokers who are members of SPPA Service Users to monitor the debt securities market and money market on the same single platform. SPPA also offers a trading process up to post trade that is straight-through-processing (STP), thus answering the industry’s needs for transaction mechanisms in the money market.”
The launch of SPPA Repo is a momentum for IDX to play a more active role in the development and strengthening of the financial market in Indonesia. In accordance with the digitalization strategy and strengthening of the Financial Market infrastructure implemented by Bank Indonesia, SPPA repo is targeted to become a major part of the Financial Market Infrastructure in Indonesia.
“We believe that SPPA will play an important role in the ecosystem of debt securities trading and money market in Indonesia. [IDX] is committed to providing the best service so that market players get the best price, best practice trading mechanisms and efficient post-trade processes. It is hoped that SPPA can also be used as a joint platform by the Financial Services Authority (OJK), the Ministry of Finance, and Bank Indonesia for price monitoring , price quotation media by primary dealers, and assist in decision making related to fiscal policy and monetary policy,” said Hendrik.
SPPA securities transaction performance in 2024 came in with a total transaction value of IDR246.1 trillion ($14.9bn) and an interdealer domestic market Share reaching 16%, which is an increase in total transaction value of 76% and market share of 77% compared to the previous year.
There are currently 39 SPPA Service Users who can directly utilize the debt securities repo transaction service starting early this year, which is an increase of 95% compared to when it was first implemented.
“With increasingly complete services through the presence of the repo transaction feature, SPPA [IDX] is expected to become the main choice for debt and money market players in the Indonesian capital market. SPPA will also continue to strive to be an efficient and safe system for repo transaction settlement while supporting the sustainability of the capital market and money market in Indonesia,” according to IDX.
Source (machine translated from Indonesian)