Kamis, Agustus 8, 2024

Bonds Eligible to Become Objects of Repo Transactions and Margin Fulfillment in Triparty Repo Facility Now Expanded

As the system that support the utilization of the Triparty Repo Facility on the expansion of the scope of the types of instruments used in the Repo Transactions, PT Kliring Penjaminan Efek Indonesia ("KPEI") has decided to adjust various provisions outlined under Decree of Board of Directors of KPEI No. Kep-066/DIR/KPEI/1223 ("Decree 66/2023") by setting forth the applicable objects and margins of Repo Transactions through the issuance of Decree of Board of Directors of KPEI No. Kep-037/DIR/KPEI/0724 ("Decree 37/2024"), which has been in force 1 August 2024. Upon the enforcement of Decree 37/2024, the aforesaid Decree 66/2023 has now been replaced and repealed.
At its core, the new framework of Decree 37/2024 has clarified the applicable exemption to the applicability of Rule No. X-2 ("Rule X-2") as the Appendix to Decree of the Board of Directors of KPEI No. KEP-032/DIR/KPEI/0219 on Triparty Repo Facility ("Decree 32/2019").
In relation to the above exemptions, Decree 37/2024 has affirmed that the securities that is eligible to become the object to Repo Transactions under Rule X-2 encompass shares and bonds. Moreover, Decree 37/2024 has also affirmed that the fulfillment of margin in Repo Transactions that utilize Triparty Repo Facility refers to funds/cash and securities that include shares and bonds.
In addition to the above matters, Decree 37/2024 has addressed that bonds that are eligible to become the abovesaid Repo Transaction objects and margin fulfillment comprise of the following bonds: 1) Corporate bonds; 2) Fixed Rate (FR) series government bonds; and 3) Retail government bonds (ORI). Previously, the now-revoked Decree 66/2023 only include bonds outlined in point (1).

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As the system that support the utilization of the Triparty Repo Facility on the expansion of the scope of the types of instruments used in the Repo Transactions, PT Kliring Penjaminan Efek Indonesia ("KPEI") has decided to adjust various provisions outlined under Decree of Board of Directors of KPEI No. Kep-066/DIR/KPEI/1223 ("Decree 66/2023") by setting forth the applicable objects and margins of Repo Transactions through the issuance of Decree of Board of Directors of KPEI No. Kep-037/DIR/KPEI/0724 ("Decree 37/2024"), which has been in force 1 August 2024. Upon the enforcement of Decree 37/2024, the aforesaid Decree 66/2023 has now been replaced and repealed.
At its core, the new framework of Decree 37/2024 has clarified the applicable exemption to the applicability of Rule No. X-2 ("Rule X-2") as the Appendix to Decree of the Board of Directors of KPEI No. KEP-032/DIR/KPEI/0219 on Triparty Repo Facility ("Decree 32/2019").
In relation to the above exemptions, Decree 37/2024 has affirmed that the securities that is eligible to become the object to Repo Transactions under Rule X-2 encompass shares and bonds. Moreover, Decree 37/2024 has also affirmed that the fulfillment of margin in Repo Transactions that utilize Triparty Repo Facility refers to funds/cash and securities that include shares and bonds.
In addition to the above matters, Decree 37/2024 has addressed that bonds that are eligible to become the abovesaid Repo Transaction objects and margin fulfillment comprise of the following bonds: 1) Corporate bonds; 2) Fixed Rate (FR) series government bonds; and 3) Retail government bonds (ORI). Previously, the now-revoked Decree 66/2023 only include bonds outlined in point (1).

......