OJK Inks Agreement with ESMA; Allows KPEI to Penetrate EU's Market

TEMPO.CO, Jakarta - The Financial Services Authority (OJK) inked an MoU with the European Securities and Markets Authority (ESMA) on the recognition of the PT KPEI as a third-country central counterparty (CCP).

The recognition was based on the provisions under Article 25 of the Market Infrastructure Regulation (EMR), announced through the decision of the ESMA Board of Supervisors on October 19, 2023, and entering into force on December 31, 2023.

Chief Executive functioning as Capital Markets, Financial Derivatives, and Carbon Exchange Supervisor Inarno Djajadi stated that the agreement was a follow-up of OJK's effort to push KPEI to upgrade its services globally.

"The recognition by ESMA is in line with OJK's effort to implement the good corporate governance principle, precautionary principle, effective risk management, security principle, efficiency, and capital market capability," he said in a statement quoted on Monday.

According to ESMA's assessment, Inarno said, KPEI is included in the Tier 1 Third-Country CCP, indicating that the risk possessed by KPEI to the EU and its state members is non-systemically important.

"With this recognition by ESMA, KPEI is allowed to provide clearing services to clearing members and trading venues operating in the Europe Union," Inarno said.

Based on the MoU, OJK and ESMA stressed their commitment to cooperate to regulate and supervise the CCP, following OJK's legal instruments and supervision.

YOHANES MAHARSO JOHARSOYO

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