TEMPO.CO, Jakarta - The Indonesian Stock Exchange (IDX) will summon a number of its members for alleged suspicious activities during the pre-closing session or 10 minutes before the closing session.
IDX director for trading and membership Alpino Kianjaya said that the IDX has identified the alleged five members, which are foreign entities.
"I won't name them, but all of them have been identified and will be processed soon," Alpino said at the IDX in Jakarta on Monday, February 13, 2017.
Alpino viewed that such activities would raise flags since they were conducted without transparency. For 10 minutes before the session is closed, market movers cannot see what happens in the market.
The suspicious activities allegedly took place on Friday, February 10, 2017 resulting in a decline in the Indonesia Composite Index (IHSG). Alpino hopes that such activities will not recur, as the IDX is currently considering options to prevent it from recurring. One of the options is to announce transactions that take place during the pre-closing session.
Another option is to randomly change the closing session. Alpino said that the scheme would be triggered automatically by the system.
"Therefore, we don't have to wait until 4:00 PM [Western Indonesia Time]," Alpino explained.
The last option is to remove pre-closing sessions.
"For investors, pre-closing is not profitable," Alpino said.
To this date, the IDX has not yet decided which option is to be implemented.
VINDRY FLORENTIN
