Rabu, Agustus 14, 2024

Bank Indonesia and Major Banking Industry Actors to Collaborate in the Development of Central Counterparty

The Senior Deputy Governor of Bank Indonesia ("BI"), Destry Damayanti ("Deputy Governor"), has affirmed that BI is currently collaborating with the Financial Services Authority (Otoritas Jasa Keuangan – "OJK"), as well as with various Self-Regulatory Organizations ("SRO") and actors operating within the banking industry in order to develop a Central Counterparty ("CCP"). This collaboration was formally inaugurated through the signing of the Inter-Shareholders Agreement on CCP Development at PT Kliring Penjaminan Efek Indonesia ("KPEI") on 18 March 2024. In this regard, KPEI will now act as a BI-licensed organizer of CCP within the money and/or foreign exchange markets (Pasar Uang dan/atau Pasar Valuta Asing/PUVA).
In essence, the above-described CCP will focus its energies on becoming an agency that engages in the clearing and novation of debts in relation to transactions that are undertaken by its members. The ultimate goal, in this regard, is to mitigate the various credit, liquidity and market risks that are associated with price movements. This initiative to develop the CCP represents a follow-up to the mandate originally set out under the framework of Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector, as well as the 2025 Blueprint for Money Market Development and the G20 OTC Derivatives Market Reform commitments.
During the recent signing, Dian Ediana Rae, a member of the OJK Commission, ("Commissioner"), expressed strong support for the development of the above CCP, emphasizing its critical role in advancing derivative transactions within Indonesia. In this regard, the OJK has authorized banks to invest in the CCP, while KPEI has been mandated to expand its services within the money and foreign exchange markets while maintaining the various international standards that are recognized by the European Securities and Markets Authority (ESMA) as the CCP’s third-country partner.
Ultimately, the next CCP development phase will involve BI and several other banks investing in the CCP upon the securing of official OJK approval. In this regard, the agency is expected to become fully operational by the end of the year, thereby accelerating the deepening of Indonesia’s financial markets. _(ANT)

......

Subscribe to read more legal analysis.

Hukumonline Pro Intelligence

Platform AI hukum terpercaya sebagai solusi komprehensif riset Anda

Professional Solutions

University Solutions

Pro

Rp 5.000.000 /bulan

Jadwalkan Demo

Lihat Detail

Pro AI

Terfavorit

Rp 8.200.000 /bulan

Jadwalkan Demo

Lihat Detail

Pro Compliance

New

Rp 12.500.000 /bulan

Jadwalkan Demo

Lihat Detail

*Syarat dan ketentuan berlaku

The Senior Deputy Governor of Bank Indonesia ("BI"), Destry Damayanti ("Deputy Governor"), has affirmed that BI is currently collaborating with the Financial Services Authority (Otoritas Jasa Keuangan – "OJK"), as well as with various Self-Regulatory Organizations ("SRO") and actors operating within the banking industry in order to develop a Central Counterparty ("CCP"). This collaboration was formally inaugurated through the signing of the Inter-Shareholders Agreement on CCP Development at PT Kliring Penjaminan Efek Indonesia ("KPEI") on 18 March 2024. In this regard, KPEI will now act as a BI-licensed organizer of CCP within the money and/or foreign exchange markets (Pasar Uang dan/atau Pasar Valuta Asing/PUVA).
In essence, the above-described CCP will focus its energies on becoming an agency that engages in the clearing and novation of debts in relation to transactions that are undertaken by its members. The ultimate goal, in this regard, is to mitigate the various credit, liquidity and market risks that are associated with price movements. This initiative to develop the CCP represents a follow-up to the mandate originally set out under the framework of Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector, as well as the 2025 Blueprint for Money Market Development and the G20 OTC Derivatives Market Reform commitments.
During the recent signing, Dian Ediana Rae, a member of the OJK Commission, ("Commissioner"), expressed strong support for the development of the above CCP, emphasizing its critical role in advancing derivative transactions within Indonesia. In this regard, the OJK has authorized banks to invest in the CCP, while KPEI has been mandated to expand its services within the money and foreign exchange markets while maintaining the various international standards that are recognized by the European Securities and Markets Authority (ESMA) as the CCP’s third-country partner.
Ultimately, the next CCP development phase will involve BI and several other banks investing in the CCP upon the securing of official OJK approval. In this regard, the agency is expected to become fully operational by the end of the year, thereby accelerating the deepening of Indonesia’s financial markets. _(ANT)

......