Derivative Contracts on Alternative Trading System Reregulated

The Head of the Indonesian Commodities Futures Trading Supervisory Agency (“Bappebti”) has issued Regulation No. 109/BAPPEBTI/PER/01/2014 on Derivative Contracts Traded on the Alternative Trading System (“2014 Regulation”).

The 2014 Regulation sets out provisions on the types of derivative contracts and requirements for those contracts to be traded on the alternative trading system.

The Alternative Trading System (“ATS”) is a system for selling derivative contracts (excluding futures contracts and sharia derivative contracts) which are traded bilaterally between two parties outside the futures exchange market (Jakarta Futures Exchange). Under this new mechanism, margins derived from ATS trades must be registered with the futures clearing house (Art. 1 (1), Head of Bappebti Regulation No. 95/Bappebti/PER/06/2012 on Alternative Trading System).