16 JSX Fact Book 2007
— Auto Rejection system is implemented and the percentage is based on the previous price or the offering
price. —
If the Opening Price is formed: o
The opening price on Windows Securities is not equal to 0. o
Auto Rejection for sessions I II is based on the Opening Price not Previous Price o
Pre-Opening Orders that are not allocated and are out of the new Auto Rejection range will be withdrawn automatically by JATS see Auto Rejection diagram
— If the Opening Price is not formed:
o The opening price on Windows Securities is equal to 0.
o Auto Rejection for sessions I II is based on the Previous Price
o The status Order will remain Open and will be continued to the Trading Session I.
— Beginning on February 1
st
, 2006, there are 66 listed companies that have been pre-selected and evaluated as appropriate for pre-opening trading sessions.
iv. Terms and Conditions for Regular Market Transaction
An investor is required to fulfill the following conditions to trade in the regular market: The amount of shares, warrants and rights in a standard lot is 500 shareswarrantsrights or units
Price movements increments between orders:
Shares: Price
Maximum Price Step Step Value
Rp 200 Rp 10
Rp 1 Rp 200 - Rp 500
Rp 50 Rp 5
Rp 500 - Rp 2,000 Rp 100
Rp 10 Rp 2,000 - Rp 5,000
Rp 250 Rp 25
Rights: Price
Maximum Price Step Step Value
Rp 200 Rp 10
Rp 1 Rp 200 - Rp 500
Rp 50 Rp 5
Rp 500 - Rp 2,000 Rp 100
Rp 10 Rp 2,000 - Rp 5,000
Rp 250 Rp 25
f. Negotiation Market
The Jakarta Stock Exchange also provides stock trading based on the negotiation between buyer and seller. Trading at the Negotiation Market is conducted through individual bid-offer process, or direct negotiation. The Negotiation
Market can take the form of:
— Among Exchange Members or among clients facilitated by one of the Exchange Members, or
— Between Clients and an Exchange Member, or
JSX Fact Book 2007 17
— Between Exchange Member and KPEI. The agreed bid-offer will then be processed through JATS.
The rules for Negotiation Market are: —
Stocks traded are using per share unit. —
The price fraction is not applicable, transactions are recommended to be based on the stock prices at Regular Market.
— The price is based on the agreement between the transacting parties.
— Unlike in the Regular Market, in Negotiation Market matched transactions are not included in the indices
calculations. —
The Settlement date is based on the agreement between sellers and buyers. If there is no agreement, then the settlement follows the T+3 rule.
g. Margin Trading
The JSX has implemented the regulation on Margin Trading since August 1, 1997, under the Regulation No. II-9: 1.
Margin Trading is the stock exchange transaction implemented and settled by the Exchange Member in the interest of their customers.
2. To implement the Margin Trading for the first time, the Exchange Member is obligated to submit the
following documents to the JSX: a.
A statement letter proving that they own the minimum Net Adjusted Working Capital NAWC of Rp 5,000,000,000 with the monthly NAWC’s compilation report enclosed.
b. A statement letter from the accountant registered in the Bapepam-LK appointed by the Exchange
Member stating that the accountant has checked its books, notes and operational systems of the Exchange Member and that it has fulfilled all the requirements from the Bapepam-LK’s Regulation
No. V.D.3 regarding the Internal Control and the exchange member’s accounting implementation.
c. The sample of the margin contract between the Exchange Member and the customer.
3. The JSX will announce the names of the Exchange Members who have fulfilled the Margin Trading
requirements. 4.
The Exchange Member mentioned in the point 3 is obligated to submit the report to the JSX on the NAWC’s position of the previous exchange day, at least 30 minutes before the beginning of the trading
on the related exchange day.
5. The Exchange Member mentioned in point 3 is prohibited to implement the Margin Trading in the
interest of one customer, in which the Margin Trading may cause the debit balance andor the short position of more than 20 of the NAWC, with the rule that the total of all Margin Trading values which
can be implemented is maximum 10 times of the NAWC’s value of the mentioned Exchange Member.
6. The Exchange Member is prohibited to implement the Margin Trading in the interest of the Board of
Directors, Commissioners, Main Stockholders andor the employees of the Exchange Member. 7.
The Margin Trading can be implemented by the Exchange Member only after its customer opened a Margin Securities Account based on the margin contract between the customer and the related Exchange
Member.
8. The margin contract mentioned in point 7 contains at least:
a. The rights and obligations of the customer and the exchange member, including the submission
of collaterals, costs, commissions and interests;
18 JSX Fact Book 2007
b. The mechanism for implementing the Margin Trading facilities.
c. The margin contract’s termination that is caused by either the customer or the Exchange Member
which no longer meet the requirements of the Margin Securities Account or by other things that may be agreed on by both parties.
9. The sanctions are prepared by the exchange for violations of the rule.
Under the Bapepam-LK rule Kep – 09PM1997, the requirements of Margin Trading for the securities are as follows:
1. Listed in the JSX.
2. Traded on every stock exchange day for the last 6 six months with an average daily value of at least Rp
1,000,000,000. 3.
Owned by more than 4,000 Parties for the last 6 months, if the transactions creates a Short Position.
h. Settlement
