KPEI Rule Book Launch: A Game Changer for Banks Eyeing CCP Membership Within PUVA Sector

Given the importance of Central Counterparty institutions that serve as intermediaries between parties that engage in money and/or foreign exchange market (Pasar Uang dan/atau Pasar Valuta Asing – “PUVA”) transactions (“CCP”)[1] for non-Bank Indonesia (“BI”) organizers of financial market infrastructure (N.B. it should be noted that PT Kliring Penjaminan Efek Indonesia [“KPEI”] has already secured a BI permit to operate as a CCP), KPEI has decided to introduce a number of applicable provisions and procedures for the organization of the CCP. Said provisions and procedures largely relate to the clearing and settlement of PUVA transactions (“Rule Book”)[2] and have now been introduced through the issuance of Decree No. KEP-042/DIR/KPEI/0924 (“Decree 42/2024”), which has been in force since 30 September 2024.[3]