The IDX, supported by OJK, revised trading regulations to adjust auto rejection limits to 15% and implement trading halts based on IHSG declines, aiming to enhance market stability and investor protection.
To ensure orderly, fair and efficient securities trading, Indonesia Stock Exchange (IDX) with the support from Indonesia Financial Services Authority (OJK) adjusted the Decree of the Board of Directors of PT Bursa Efek Indonesia Number Kep-00196/BEI/12-2024 regarding Amendment to Regulation number II-A concerning Trading of Equity Securities and Decree of the Board of Directors of PT Bursa Efek Indonesia Number Kep-00024/BEI/03-2020 concerning Amendment to the Guidelines for Handling Trading Continuity on the Indonesia Stock Exchange in Emergency Conditions.
The percentage Lower Limit of Auto Rejection is adjusted to 15% (fifteen percent) on the stock listed on the Main Board, Development Board, and New Economy Board, then on Exchange-Traded Fund (ETF), as well as Real Estate Investment Trust (DIRE) for all price ranges.
Meanwhile, the adjustments of securities trading halt are as follows:
In the event of the decline in IDX Composite (IHSG) in 1 (one) Exchange Day, IDX can conduct actions as follows:
- Trading halt for 30 minutes if IHSG declines more than 8% (eight percent);
- Trading halt for 30 minutes if IHSG furtherly declines to more than 15% (fifteen percent);
- Trading suspend if IHSG furtherly declines to more than 20% (twenty percent) with following conditions:
• until the end of trading session; or
• more than 1 (one) trading session after acquiring approval or instruction from OJK
The adjustment of the Lower Limit of Auto Rejection is conducted to control market volatility and ensure investor protection. Meanwhile, the adjustment to the securities trading halt rules is made as an effort to provide ample liquidity for investors in determining investment strategies by considering circulating information. In implementing this policy, IDX has considered best practices among other Stock Exchanges as well as ensuring the input of market stakeholders.
