Sunday, 30 November 2014

KSEI INCOLVED NASDAQ IN DEVELOPING STOCKMARKET INSFRASTRUCTURE




In the effort to build infra-structure toward anticipating global competition and readiness to join the Asean Economic Community 2015, PT Kustodian Sentral Efek Indonesia, [KSEI], Indonesia Central Securities Depository, collaborated with Nasdaq. On the other hand Nasdaq was developing US stockmarket system, i.e. development of Central Depository and Book Entry Settlement System [C-Best] Next Generation [Next-G]. In this collaboration project KSEI and OJK logo were being displayed at Nasdaq building in Times Square New York, N.Y.

In this collaboration KSEI adopted X-Stream Technology [post trading] belonging to Nasdaq according to the specification needed. C-BEST next-G would be supported by Business Continuity Plan [BCP] i.e. the latest security system to secure data confidentiality and application of Disaster Recovery System [DRC] which safeguard continuity of service operations by minimizing down time in times of disaster.

“The collaboration is an effort to anticipate AEC next year, when market competition would be tighter at international level.  “KSEI President Heri Sunaryadi stated at BEI building in Jakarta on Friday [17/10].

The technology was expected to step up KSEI role as Central Securities Depository [CSD] which was competitive in the region and was in line with the implementation JATS Next-G Trading system adopted by BEI sometime ago. The C-BEST Next G which was being developed would soon accommodate SWIFT ISO 20022 formatted massages which was internationally valid and targeted to be applicable in December 2016. Such would enable KSEI make cross boder settlements with other countries.

Heri stated that the C-BEST next G was follow up of development phase process done by KSEI since 2012 including the design study process completed this year. As KSEI main system. C-BEST was an integrated electronic platform which had been supporting transaction activities since 2000, especially by the time scriptless trading was implemented in Indonesia’s stockmarket.

“The  C-BEST system in existent today could accommodate up to 3,000 transaction settlements per minute while the C-BEST Next G was targeted to handle up to 3 million investors in Indonesia’s stockmarket with processing capacity being increased by more than six fold of the previous capacity it around 20,000 settlements per minute.” He said.

KSEI data had it that in 2013 total settled transaction through C-BEST was 1,34 trillion units with frequency posted at 37,5 million. the amount posted increase in 2012, with total accomplished transaction amounting to 1.05 trillion units with frequency posted at 29.09 million.

Executive Vice President of Market Technology Nasdaq Lars Ottersgard remarked further that the collaboration set up with KSEI was an important step in “post trade” business owned by Nasdaq. To develop C-BEST NEXT G, KSEI would adapt the X-Stream Technology product of Nasdaq according to the specifications required. This technology was expected to step up the role of KSEI as Central Depository [CSD] who could compete at regional level. “We gladly welcome collaboration with KSEI and ready to be part of Indonesia in the future,” Lars Ottersgard remarked.

C-BEST was an interated electronic platform which supported shares transaction settlement activities by way of book transferring since year 2000, to be exact during implementation of scripless trading in Indonesia’s stockmarket. (SS)

Business News - October 22, 2014

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