The Indonesia Stock Exchange (BEI) is gearing up to introduce single stock futures (SSF). This new derivative product is expected to be launched in April-May 2024.
According to Jeffrey Hendrik, the Director of Development at BEI, SSF represents an agreement or contract between two parties to buy or sell a particular stock. In other words, the underlying asset of SSF will be stocks.
"SSF can be used by investors to profit whether the market is bullish or bearish," stated Jeffrey during his remarks at the Journalist Education event on Friday (March 15, 2024).
Another advantage of SSF is that it provides investors with the opportunity to implement new trading strategies for LQ45 stocks with significantly lower capital requirements, as low as 4% of the full lot price.
In the initial stage, BEI will launch 15 SSF series consisting of 5 underlying stocks from the LQ45, namely BBCA, BBRI, PLKM, ASII, and MDKA. Each stock will have 3 contract periods: 1 month, 2 months, and 3 months.
"Currently, more than 15 exchange members have expressed interest in joining as derivatives exchange members, with 6 of them being intensively processed by our team, and one has completed the entire process, namely Bina Artha Sekuritas," Jeffrey added.
With technological advancements, Jeffrey promises that the process of opening derivative accounts, which has not been easy in the past, will become simpler with the infrastructure provided by the SRO.
Moreover, with the implementation of POJK number 15, securities sub-accounts at KSEI can serve as an alternative fund receptacle.