• IDN FSA issued regulation 6/2024 on financing of securities transactions by securities companies for customers and short selling transactions by securities companies.
• Follows IDN FSA December 2020 issued regulation on financing securities trades.

Regulation

• Refines the provisions that were previously issued in 55/POJK.04/2020.
• In particular, the provisions related to governance and prudential aspects of securities transaction financing activities for customers by securities companies.
• Aims to increase liquidity and deepen financial markets through margin and/or short selling transactions, as well as strengthen risk management for securities companies.
• Regulates stock exchange obligations re securities companies providing financing for settlement of securities transactions, requirements for customers receiving financing.
• Requirements for securities that can be transacted in securities financing transactions.

Effectiveness

• Regulation is valid for 6 months from the date of promulgation, 3 April 2024.