Indonesia commits to securities finance boost in 2017
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Indonesia commits to securities finance boost in 2017 27 October 2016Jakarta Reporter: Drew Nicol
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The Indonesia Stock Exchange (BEI) has pledged to grow the country’s securities financing market as one of its key initiatives for 2017.
The exchange is also expected to loosen collateral rules before the end of the year.
In a statement on the initiative, BEI stated: “Relaxation of margin is expected to increase the value of the transaction and market liquidity.”
A boost to the country’s securities finance market is aimed at improving overall liquidity, which has been in decline since 2013. Another aspect of this initiative is to make the Indonesian market more attractive to foreign investors in the Asia and beyond.
The move comes as part of the exchange’s ambition to achieve an average daily transaction value of IDR 8 trillion (USD 614 million) in 2017, up from an estimated IDR 6.6 trillion (USD 506.7 million) this year.
The exchange also confirmed that Bank Indonesia’s seven-day repo rate for 2017 is expected to be 5 percent.
Indonesia’s securities lending market was formed in 2001 as part the Indonesian Clearing and Guarantee Corporation.
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