00:00Indonesia officially has a Central Contra Party, or CCP.
00:08The Consortium of Central Contra Party, or CCP,
00:11is an institution that manages the financial market and the foreign exchange market in Indonesia.
00:14It will be a bridge-building institution,
00:16providing liquidity transactions,
00:18both in the financial market and foreign currencies.
00:20In addition, the existence of the CCP is expected to boost the volume of the financial market
00:24and foreign currencies.
00:30The Bank of Indonesia, together with the Financial Services Authority,
00:34and the Indonesian Stock Exchange,
00:36officially launched the Central Contra Party, or CCP.
00:41This launch includes eight banks that are participating.
00:45The formation of the CCP is the 4th Law of 2023
00:51on the development and strengthening of the financial sector
00:54and the security of the Financial Stability Board G20 to its members.
01:01The Indonesian Bank Governor, Periwarjio,
01:04affirmed that the presence of the Central Contra Party
01:07gives the benefit of the form of money market and foreign currency transactions
01:11which is more efficient.
01:13Thus, the volume of transactions and liquidity is greater,
01:17the determination of the flow rate and exchange rate is more effective,
01:20and the main market players will be more active.
01:24It will be formed because the confidence of the international community will enter
01:29and the inflow will also enter.
01:32So, the first message in the message today,
01:35Alhamdulillah, let's wait a little longer,
01:38CCP derivative, SPMT, officially.
01:43We will launch and start to operate.
01:47Second, our CCP, SPMT, is a qualified CCP.
01:58Qualified.
01:59I have said that I am Buddhist.
02:04I will not be formal.
02:07If starting from Friday night, starting today,
02:11CCP, SPMT is not qualified.
02:15And Alhamdulillah, Buddhism with Mr. Doni,
02:17working over the weekend together,
02:19eight banks and PEPE,
02:21preparing everything.
02:24What is the most important of this?
02:28One, the construction permit, capital distribution, everything is done.
02:33In terms of institution, business, everything is done.
02:37The Chairperson of the Commissioners' Council, OJK Mahendra Sirekar,
02:40estimates that the existence of the CCP will be beneficial
02:44for the financial services industry in Indonesia,
02:47especially in mitigating the risk of the opponent's credit
02:51and increasing efficiency in the clearing process
02:54and the completion of derivative transactions.
02:58This is a manifestation of the strengthening of risk mitigation
03:02and the fulfillment of good management standards
03:05and in accordance with international best practices.
03:09In line with what has been done to PEE as the third CCP
03:13from the European Securities and Market Authority, or ESMA,
03:17for business lines,
03:19insurance clearing institutions in the capital market sector.
03:24The formation of the Central Counterparty
03:26is one of the efforts to deepen the financial market
03:29and derivative balance in the country.
03:32Because since the global financial crisis,
03:35Indonesia does not have a CCP
03:37for the exchange rate and exchange value derivative transactions,
03:40or CCB-SBNT, which is a close-out netting.
03:45The Central Counterparty was formed to develop hedging
03:48or protection from the risk of investment losses.
03:52In addition, the Central Counterparty can make transactions
03:56in the financial market more efficient
03:58and make the volume bigger.
04:01Jakarta Herutri Yuniarto, IDX Channel.
04:05For more information, visit www.ISGlobal.org
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