STOCK TRADING MECHANISM IN IDX

All transactions in the Exchange are processed in a facility called as JATS. Only the Exchange Members, who also become the members of the Indonesian Clearing and Guarantee Corporation (KPEI), can input the orders into the JATS. The Exchange Members are responsible for every transaction they make in the Exchange.

Exchange Members have the responsibility to settle all the transactions they've made, as stated in the Exchange Transaction List (DTB), including the transactions that occur because of:

• the errors made by the supporting equipment or Remote Trading applications of the Exchange Member, except for the errors made by the JONEC software that was provided by the Bourse; and/or
• the mistakes caused by the carelessness of the traders when inserting the purchase and sell orders into the JATS; and/or
• the mistakes caused by the carelessness of the IT Officer-RT when operating their supporting equipments or applications; an/or

the invalid access into the Exchange Member’s supporting equipments or applications.

Market Segmentation

• Regular Market;
• Cash Market;
• Negotiated Market.

Pre-Emptive Rights are traded only on the first session of the Cash and Negotiated Market.


Trading Hours

Securities Trading in Regular, Cash and Negotiation Markets are opened during the trading hours on every business day by reffering to the JATS Timer.

Reguler Market

Day	Session I	Session II
Monday - Thursday	09:30 - 12:00 WIB	13:30:00 - 16:00 WIB
Friday	09:30 - 11:30 WIB	14:00:00 - 16:00 WIB

Cash Market

Day	Time
Monday - Thursday	09:30:00 - 12:00:00 WIB
Friday	09:30:00 - 11:30:00 WIB

Pre-Opening Session

Pre-opening session in Regular Market is opened every Exchange Day:

Time	Agenda
09:10:00 - 09:25:00 WIB	The Exchange Members input the buying and selling orders.
09:25:01 - 09:29:59 WIB	JATS processes the pre-opening price forming and allocates every done transaction.

Purchase and Sell Orders

Exchange Members can only execute limit orders, or orders entered at a specified limit price set by their clients.

All purchase and sell orders on securities other than the pre-emptive rights can only be executed by the brokers in the Regular Market, except if their client has specifically instructed them or agreed on paper that their orders should be executed at the Cash or Negotiated Markets.


Trading Unit and Price Step (Step Value)

Trading Unit

Stock trading at the Regular and Cash Market have to be in a round lot of 500 (five hundred) unit or its multiply, while the stock trading at the Negotiated Market does not have to be in a round lot.

Price Step

Price	Step Value	Maximum Price Step *
<>	Rp 1	Rp 10
Rp 200 to <>	Rp 5	Rp 50
Rp 500 to <>	Rp 10	Rp 100
Rp 2,000 to <>	Rp 25	Rp 250
> Rp 5,000	Rp 50	Rp 500

Note
* The maximum price step is 10 times of the step value, should be below the limit of Auto Rejection, and is not valid on the pre-opening.

Stock step value and its maximum price step are valid for one entire trading day and will be adjusted on the next day if its closing price falls on a different price range. The maximum price step should not exceed the percentage of Auto Rejection limit.

Auto Rejection

The price of bids and asks input into the JATS should be in a certain price range. If a Broker inputs a price beyond the stock's price range, the JATS will automatically reject the stock order.

Auto Rejection Percentage:

Price Group	Auto Rejection Precentage
Price < Rp 100	50%
Rp 100 <>< Rp 500	35%
Rp 500 <>< Rp 2,500	30%
Rp 2,500 <>< Rp 5,000	25%
Price > Rp 5,000	20%

The bids and asks of a stock should be based on:

• its previous price;
• its pre-opening price, if the stock has formed a pre-opening price;
• its theoretical price, if the stock is traded in a Bourse that is conducting a Corporate Action;
• its initial price, if the stock is listed for the first time in the Exchange;
• its proper price determined by an independent party, if the stock is of a Public Company or other Bourse.

Auto rejection limit of a newly listed stock in the Exchange (on its first day) is twice of the parameter above.

Pre-Opening Session

Stock trading at the Regular Market starts with a Pre-opening session. This session allows Exchange Members to input their purchase and sell orders according to the provisions of the stock unit, step value and Auto Rejection limit.

The Pre-opening price is formed from the accumulation of the total highest bids and asks matched by the JATS during the Pre-opening session.

All bids and asks that have not been matched during the pre-opening session will be processed in the first session of the trading day, except if the price of the bids and asks has excel the Auto Rejection limit.


Regular Market

The bids and asks will be processed by the JATS by considering:

1. Price priority
Higher bids have more priority than lower bids. On the contrary, lower asks
have more priority than higher asks.
2. Time Priority
If the bids and asks are on the same price, JATS will give priority to the first
submitted bids and asks.

Reduction on the number of purchase or sell order processed into the JATS will not cause time priority lose. On the other hand, addition on the number of purchase or sell order processed into the JATS will be treated as a new order. Stock trading in the Regular and cash Market will occur and bind when JATS matches the sell and purchase orders.

Negotiated Market

In Negotiated Market, prices of each security are bargained out between:

• Exchange Members
• Investor and one Exchange Member
• Investor and Exchange Members
• Exchange Members and the Indonesian Clearing and Guarantee Corporation (KPEI)

The results of the negotiation will be processed through the JATS.

The Exchange Members can submit their bids and asks through the ad board, and they can change or cancel them before they are matched with other bids and asks in the JATS. Once they are matched, a transaction is made and will be carried out.