Transaction Settlement
- Stock Exchange Transaction Settlement
Scripless Securities trading processes and book-entry transaction settlements through the C-BEST system have enabled KSEI to process settlements of transactions that are conducted both inside or outside of the Stock Exchange.
Transactions within the Stock Exchange are currently separated into three markets:
- Regular Market which has a D+2 (Date + 2 days) settlement date.
- Cash Market which has a D+0 settlement date.
- Negotiated Market which settlement dates are based on agreements between the Sellers and Buyers.
Securities Transactions that are done through the Stock Exchange are considered “locked-in,” or in other words must be settled within D+2 or D+0 (as specified by the types of markets above). At the end of each day, trading data from the Stock Exchange will be sent to the Indonesian Clearing and Guarantee Corporation (KPEI) for netting process. All trades within the Regular Market and Cash Market are guaranteed by KPEI’s mechanisms, however trades in the Negotiated Market are not guaranteed by KPEI and each transaction must be settled individually.
Meanwhile, cash settlements for Stock Exchange transactions are processed by appointed Payment Banks or through Bank Indonesia’s Central Bank Money (CeBM) cash settlement mechanism.
- Outside of the Stock Exchange/Over The Counter (OTC) Transaction Settlement
Over the Counter (OTC) transaction settlements are transactions that are conducted outside of the Stock Exchange through securities and/or cash book-entries between Securities Accounts at KSEI. OTC transaction settlements may include both securities transaction settlements with cash book-entries or without cash book-entries.
For transaction settlements outside of the Stock Exchange, both Sellers and Buyers must first input specific instructions into KSEI’s C-BEST system. The data inputted by the Sellers and Buyers into the C-BEST system (such as on transaction settlement dates, Securities Codes, Securities Amount, etc.) must match with each other.
The types of instructions that can be executed by Account Holders through the C-BEST system, include:
o Delivery Versus Payment (DVP):
This function is used by Account Holders to execute an instruction to deliver equity-based Securities through the C-BEST system and collect a cash payment from the parties that received the Securities.
o Receive Versus Payment (RVP):
This function is used by Account Holders to execute an instruction to receive equity-based Securities through the C-BEST system and send a cash payment to the parties that delivered the Securities.
o Delivery Free of Payment (DFOP):
This function is used by Account Holders to execute an instruction to deliver equity-based Securities through the C-BEST system without collecting any payment from the parties that received the Securities.
o Receive Free of Payment (RFOP):
This function is used by Account Holders to execute an instruction to receive equity-based Securities through the C-BEST system without sending any payment to the parties that delivered the Securities.
o Delivery Versus Payment for Bond (DVPBOND):
This function is used by Account Holders to execute an instruction to deliver debt-based Securities through the C-BEST system and collect a cash payment from the parties that received the Securities.
o Receive Versus Payment for Bond (RVPBOND):
This function is used by Account Holders to execute an instruction to receive debt-based Securities through the C-BEST system and send a cash payment to the parties that delivered the Securities.
o Delivery Free of Payment for Bond (DFOPBOND):
This function is used by Account Holders to execute an instruction to deliver debt-based Securities through the C-BEST system without collecting any payment from the parties that received the Securities.
o Receive Free of Payment for Bond (RFOPBOND):
This function is used by Account Holders to execute an instruction to receive debt-based Securities through the C-BEST system without sending any payment to the parties that delivered the Securities.
o Securities Transfer (SECTRS):
This function is used by Account Holders to execute an instruction to transfer Securities from a Depository Account to the Main Account of Borrowers in relation to Securities Borrowing and Lending Transactions.
o Securities Deposit (SECD):
This function is used by Account Holders to execute an instruction to convert Securities from physical to electronic form into the Securities Account/Securities Sub-Accounts of Account Holders or Account Holder’s Customers.
o Securities Withdrawal (SECW):
This function is used by Account Holders to execute an instruction to withdraw Securities in electronic form Securities Accounts/Securities Sub-Accounts and convert them into physical Securities Certificates. This function is only applicable for debt-based equities.
o Book Transfer (BTS):
This function is used by Account Holders to execute an instruction to conduct a book-entry of funds from Main Accounts to Sub-Accounts or from one Sub-Account to another Sub-Account within the charge of the same Account Holder.
o Wire Transfer (WT):
This function is used by Account Holders to execute an instruction to withdraw funds from a Securities Account/Securities Sub-Account in C-BEST to a public checking account owned by the Account Holder at the Payment Bank.
o Cash Withdrawal (CW):
This function is used by Account Holders to execute an instruction to withdraw funds from Securities Account/Securities Sub-Account in C-BEST to a Beneficiary Account specified by the Securities Company in a commercial bank that is a registered member of BI RTGS.
o Collateral Deposit (COLDS):
This function is used by Account Holders to execute an instruction to deposit a specific amount of Securities or cash as collateral to leverage up the training limit of Account Holders. It may also be used to fulfill securities or cash transfer requirements in relation to Stock Exchange transactions.
o Lendable Deposit (LENDDS):
This function is used by Account Holders to execute an instruction to transfer Securities into a Borrowing and Lending Account.