On Dec. 16, 2024, IDN FSA reminded it issued above-mentioned regulation18/2024 on securities liquidity providers to enhance financial market depth and trading liquidity.
It discussed key features of the reg, reminded about May, 8, 2025 commencement.
On Apr. 26, IDN FSA drafted regulation on liquidity provider activities.
IDN FSA proposed draft regulations on liquidity provider activities, to deepen financial market and increase the liquidity of securities traded through the stock exchange.
Registrations
The draft rule outlines provisions on liquidity provider requirements and prohibitions.
Securities brokers or other parties carrying out activities as liquidity providers must obtain a business license as a securities broker from IDN FSA, and fulfill requirements.
They must also obtain approval from the market organizer as a liquidity provider.
After obtaining approval, they are obliged to provide liquidity in securities trading at the market organizer by quoting certain securities determined by the market organizer.
Short Selling
Market organizers shall determine the securities that can be carried out in short selling transactions by the liquidity provider, via underlying securities derivative contracts.
Liquidity providers are required to ensure settlement of short selling transactions.
Market organizers are obliged to supervise the activities of liquidity providers.
Further provisions on administrative penalties for non-compliance of regulations.
Consultation End
Stakeholders can submit comments until May 27, 2024.
Dec. 12, 2024 Regulatory Update
On Dec. 12, 2024, IDN FSA issued regulation 18/2024 establishing framework for market liquidity providers, aiming to deepen capital markets by improving the securities transaction liquidity through the indicated liquidity provider activities.
IDN FSA also issued frequently asked questions(FAQs) concerning the above reg.
Establishes exemptions from false trading and market manipulation provisions for authorized liquidity provider activities; sets requirements, prohibitions for providers.
Establishes rules for short selling activities by liquidity providers and details supervision and regulation of liquidity providers by market operators; previous provisions in derivative contracts, structured warrants regs revoked when effected.
Regulation becomes effective May 8, 2025.
Dec. 16, 2024 IDN FSA Comments
On Dec. 16, 2024, IDN FSA reminded it issued above-mentioned regulation18/2024 on securities liquidity providers to enhance financial market depth and trading liquidity.
It discussed key features of the reg, reminded about May, 8, 2025 commencement.
