Kamis, Juni 8, 2023

BEI Introduces Periodic Call Auction Mechanism Through the Special Monitoring Board of the Stock Exchange

The Board of Directors of the Indonesia Stock Exchange (Bursa Efek Indonesia – "BEI") has decided to introduce the Periodic Call Auction ("PCA") mechanism for companies that are listed on the exchange’s Special Monitoring Board ("Board") through the issuance of Rule No. II-X as the Appendix to Decree of the BEI Board of Directors No. KEP-00082/BEI/05-2023 ("Decree 82/2023"), which will come into force on 12 June 2023. (Recitals and enforcement date)
Broadly speaking, the trading of equity securities ("Securities") through the Board now encompasses the following markets: 1) Regular PCA; 2) Cash PCA; and 3) Negotiation. While Securities trading may only be carried out through the PCA mechanism, pre-emptive rights (Hak Memesan Efek Terlebih Dahulu – “HMETD”) may only be traded through the above-listed cash PCA and during the first session of the negotiation market. (Sec. II.1 - II.3, Rule II-X)
Decree 82/2023 sets a transition period for this new rule that has been based on the applied trading mechanisms. Overall, said Securities trading transitions break down as follows: 1) For continuous action-based trading: the Jakarta Automated Trading System ("JATS") should initiate auto-rejection in relation to submitted offerings or requests for purchases of shares that value more or less than 10% of the determined reference price; and 2) For PCA-based trading: a) The JATS should set a minimum price limit of Rp. 1 for the entirety of the previously described Securities trading market; b) The JATS should initiate auto-rejection in relation to inputted prices that do not comply with the applicable threshold or that are above the 10% determined reference price for shares with values of Rp. 10.
It should also be noted that the above transition period for Securities trading through the Board will extend until 3 December 2023.

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The Board of Directors of the Indonesia Stock Exchange (Bursa Efek Indonesia – "BEI") has decided to introduce the Periodic Call Auction ("PCA") mechanism for companies that are listed on the exchange’s Special Monitoring Board ("Board") through the issuance of Rule No. II-X as the Appendix to Decree of the BEI Board of Directors No. KEP-00082/BEI/05-2023 ("Decree 82/2023"), which will come into force on 12 June 2023. (Recitals and enforcement date)
Broadly speaking, the trading of equity securities ("Securities") through the Board now encompasses the following markets: 1) Regular PCA; 2) Cash PCA; and 3) Negotiation. While Securities trading may only be carried out through the PCA mechanism, pre-emptive rights (Hak Memesan Efek Terlebih Dahulu – “HMETD”) may only be traded through the above-listed cash PCA and during the first session of the negotiation market. (Sec. II.1 - II.3, Rule II-X)
Decree 82/2023 sets a transition period for this new rule that has been based on the applied trading mechanisms. Overall, said Securities trading transitions break down as follows: 1) For continuous action-based trading: the Jakarta Automated Trading System ("JATS") should initiate auto-rejection in relation to submitted offerings or requests for purchases of shares that value more or less than 10% of the determined reference price; and 2) For PCA-based trading: a) The JATS should set a minimum price limit of Rp. 1 for the entirety of the previously described Securities trading market; b) The JATS should initiate auto-rejection in relation to inputted prices that do not comply with the applicable threshold or that are above the 10% determined reference price for shares with values of Rp. 10.
It should also be noted that the above transition period for Securities trading through the Board will extend until 3 December 2023.

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