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Yasril Sjaf, Fasilkom UI 2007, 2011

BEI - Fixed Income Trading System (FITS®)

Business Processes Review

What’s FITS?What’s FITS?

Contents

1111

Exchange Trading ProcessExchange Trading Process2222

Business ProcessBusiness Process3333

FITS’ BenefitsFITS’ Benefits4444

ReferenceReference5555

Ref: IDX Fact Book 2011 & http://www.idx.co.id/Home/AboutUs/TradingMechanism/Bond

What’s FITS?

FITS is a trading system for bond and SUKUK

(Corporate & Government) listed in Indonesia Stock Exchange that allows the bonds to be traded in retail basis (retail bond).

Obligasi ritel -> satuan nilai nominal kecil, mulai Rp 5 juta (1 Lot) dan kelipatannya .

Tercatat di BEI melalui suatu mekanisme transaksi bursa dan scriptless (do not require any script), dimana dalam sistem tersebut terdapat integrasi antara kegiatan transaksi, kliring dan settlement serta pembuatan laporan‐laporan terkait.

Menggunakan basis Automated Securities Trading System (ASTS) yang memungkinkan dilakukannya transaksi jarak jauh (remote access trading).

What’s FITS? Cont’

Customable -> disesuaikan dan dikembangkan menurut kebutuhan user

Aplikasi untuk user berbasis desktop dengan konsep three‐tier client server (BEI)

Meningkatkan immediacy (kecepatan bertransaksi) and membantu user agar efek nya tetap likuid

Dua mekanisme trading: Pasar Reguler Outright -> anonymous continuous auction,

price and time priority pricing Pasar Negosiasi -> allows negotiation the Exchange

Members

Ref: IDX Fact Book 2011 & http://www.idx.co.id/Home/AboutUs/TradingMechanism/Bond

Exchange Trading Process

Ref: IDX Fact Book 2011

Exchange Trading Process Cont’

The Process: 1. Investor Y offer to sell a bonds in BEI to bourse members (A) on certain amount of

volume and price, for instance 92%Investor X bid to buy a bond to bourse members (B) on certain amount of volume and price, for instance 92%

2. Bourse members A & B put bid and offer order to BEI on certain amount of volumeand price, such as 92% on Regular Market

3. Matched Trade Report send from BEI to KPEI 4. Trade Confirmation from KPEI to Bourse Member (sell/buy [92%])

Trade Confirmation from bourse member (sell/buy [92%]) to investor 5. Each bourse members fill trade allocation information consist of information details such as

transaction settlement level (Settlement Agent [SA]), clearing process (TFT or Netting), and Tax info from bourse member 1 and bourse member 2 to KPEI in form of Deal Ticket (sell [92%] ; buy [92%])

6. In order investor or bourse member requesting settlement done using account in settlement agent (SA) 1 or SA 2, therefore KPEI should confirming settlement to SA (X) and (Y).

7. Settlement Agent (X) send Settlement affirmation to KPEI (including clearing mechanism option : TFT or Netting)Settlement agent (Y) send Settlement affirmation to KPEI (including clearing mechanism option : TFT or Netting)

8. Settlement instruction to KSEIBond Movement from Acc. AS 1 to Acc. KPEI (effect transfer) Money Movement from Acc. AS 2 to Acc. KPEI (fund transfer)Bond Movement from Acc. KPEI to AS 2Money movement from Acc. KPEI to AS 1

9. Settlement status from KSEI to KPEI and settlement agent (Balance Report) 10. Settlement report from KPEI to PE; from bourse member to investor. 11. Settlement failure report (if any) from KPEI to bourse

Business Process

Main Business Process Function Secondary Market Transaction IPO Transaction Approval Settlement & Instruction Dealer Information System Upload transaction to KSEI Report

Other Function Blotter Obligation Master Data and Preferences

Ref: Katalog FITS, Fast-8

Business Process Cont’

Secondary Market Transaction Mengakomodasi pencatatan dan pengeditan transaksi obligasi

baik Beli maupun Jual, baik untuk Customer (regular) maupun dana sendiri (portfolio).

Sistem akan menghitung secara otomatis broker fee, gross proceed, interest rate, accrued days, tax holding period, tax on capital gain, dan net proceed.

Notifikasi tentang belum atau sudah diotorisasinya sebuah transaksi, serta tanda match/un‐match.

User dapat mencetak letter of confirmation (trade confirmation) setelah transaksi selesai.

Ref: Katalog FITS, Fast-8

Business Process Cont’

IPO Transaction User dapat melakukan transaksi sebagai penjamin emisi atau

agen penjualan obligasi IPO. User juga dapat mencatat data pemesanan, penjatahan, dan otorisasi transaksi obligasi IPO untuk customer.

Ref: Katalog FITS, Fast-8

Business Process Cont’

Approval Membantu pihak berwenang untuk mengotorisasi suatu

transaksi yang disiapkan oleh dealer. User yang memiliki otorisasi dapat merubah suatu transaksi sebelum penyelesaian. Menu ini terbagi dua yaitu:

‐ Otorisasi Head of Trading ‐ Otorisasi Head of Finance ‐ Otorisasi Internal Fee

Ref: Katalog FITS, Fast-8

Business Process Cont’

Settlement & Instruction Menyelesaikan transaksi yang sudah diotorisasi seperti

pembuatan trade confirmation, settlement instruction, preliminary IPO confirmation, Final IPO sales confirmation, IPO Payment instruction. Menu ini di add‐in dengan fungsi market price adjuster untuk meng-update harga pasar portfolio obligasi.

Ref: Katalog FITS, Fast-8

Business Process Cont’

Dealer Information System Memungkinkan para dealer untuk menginput data bid dan

offer obligasi sehingga dapat dipantau oleh semua user. Menu ini dilengkapi dengan fasilitas chat publik antar dealer.

Ref: Katalog FITS, Fast-8

Business Process Cont’

Upload Transaction to KSEI Menu ini memudahkan user untuk menginput transaksi ke siste

m KSEI tanpa harus menginput secara manual.

Ref: Katalog FITS, Fast-8

Ref: Katalog FITS, Fast-8

Business Process Cont’

Report ‐ Monthly transaction report (terkait blotter)  ‐ Sales Performance report (terkait blotter)  ‐ Unmatched trade  ‐ Frequency and value  ‐ Report for Finance Department  ‐ Cost of Money Transaction  ‐ Daftar Bukti Pajak  ‐ Bukti Potong Pajak  ‐ Laporan Portfolio  ‐ Memo Internal Fee Marketing  ‐ Report Transaksi Per Customer  ‐ Report Revenue from IPO 

Ref: Katalog FITS, Fast-8

Ref: Katalog FITS, Fast-8

FITS’ BenefitsFITS’ Benefits

1. Bond Transaction Efficiency by minimize funding cost and costmovement as it occur in Over the Counter Transaction.

2. Bourse Members development specially in increasing companyparticipation in trading the bond.

3. Investor Base development by encouraging participation from retail orinstitution investor.

4. Price Transparency in order to established the mark to marketbenchmark.

5. Market Liquidity Enhancement. 6. Creating a fair bond market by real time market monitoring and

surveillance including the settlement process. 7. To make easier in taxes, accrued interest and capital gain.

Ref: http://202.155.2.84/produk/Brosur_FITS_Eng.pdfRef: http://202.155.2.84/produk/Brosur_FITS_Eng.pdf

Reference

1. IDX Fact Book 2011, http://www.idx.co.id/Home/Publication/FactBook

2. Katalog-FITS, www.fast-8.com/okdownload.php?iddata=Katalog-FITS%20(Fast-8).pdf

3. http://202.155.2.84/produk/Brosur_FITS_Eng.pdf4.http://www.idx.co.id/Home/AboutUs/TradingMechanism/Bond