2012年-IMF国际货币组织全球_Indonesia_CPSS_34页_587kb

Summary, Key Findings, and Recommendations

Introduction

This report is part of the joint Indonesia Financial Sector Assessment Program (FSAP) by the IMF and the World Bank, conducted during 2009-2010. It evaluates the observance of the CPSS-IOSCO Recommendations for Securities Settlement Systems by the equity and corporate bonds securities settlement systems in Indonesia. The assessment was carried out by an ad hoc mission (12–19 December 2009) and includes an analysis of the market structure, processes, and legal framework related to securities settlement.

Information and Methodology

• Sources of Information: Interviews with officials from Bapepam-LK, Bank Indonesia (BI), the Stock Exchange (IDX), KPEI, and KSEI. Additionally, the assessment used documents, including self-assessments, rule books, and legal frameworks.
• Tools: The CPSS-IOSCO "Recommendations for Securities Settlement Systems" and "Assessment Methodology for Securities Settlement Systems", as well as the Bank-Fund "Guidance for Writing Detailed Assessments for Reports on Observance of Standards and Codes".
• Cooperation: The assessment was conducted in collaboration with the Bapepam-LK, BI, and market participants, including securities companies and custodian banks.

Institutional and Market Structure

• Regulatory Authority: Bapepam-LK is responsible for regulating the equity and corporate bonds market, including trading, clearing, and settlement.
• Self-Regulatory Organizations (SROs):
  • IDX: Provides rules, systems, and facilities for trading securities and supervises members.
  • KPEI: Acts as the central counterparty (CCP) for stock exchange trades, managing legal, financial, and operational risks.
  • KSEI: Acts as the central securities depository (CSD), holding securities in dematerialized form and facilitating settlement.
• Market Participants: Include issuers, securities companies, custodian banks, registrars, and investors.
• Settlement Banks: Four banks (Bank Mandiri, BCA, Bank CIMB Niaga, and Bank Permata) are designated for cash settlement.
• Settlement System: The C-BEST system is used for settlement, with securities and cash transfers occurring simultaneously.

Main Findings

Legal Framework

• The legal framework supports some, but not all, elements of the clearing and settlement process.
• Key Concepts Missing: Netting, finality, and delivery versus payment (DVP) are not adequately addressed in the legal framework.
• Recommendation: These concepts should be included in the legal framework in line with international definitions.

Pre-Settlement Risk

• The negotiated market segment of IDX has a non-standardized settlement process, allowing for settlement beyond T+3.
• Recommendation: T+3 should be the standard settlement cycle for all stock exchange transactions.
• KPEI (CCP):
  • Observes general requirements for CCPs.
  • Needs to improve access criteria, financial risk methods, and operational procedures.
  • Should implement back tests and regular reviews for its margin model and guarantee fund.
  • A cap should be introduced for guarantee fund replenishment by clearing members.

Settlement Risk

• Cash settlement is handled by four payment banks, which are responsible for the settlement of securities transactions.
• Recommendation: Authorities should consider introducing cash settlement in the BI-RTGS system to reduce overall market risk.
• KSEI:
  • Provides technical DVP through the C-BEST system.
  • The legal framework does not fully support the finality of cash transfers.
  • There is no deferred net settlement (DNS) within KSEI, and no intraday credit is extended to participants.

Other Issues

• Custody Risk: Sub-registries must maintain clear records and asset separation to protect customers.
• Operational Risk: KSEI's C-BEST system meets the requirements, but contingency plans and back-up facilities should be improved.
• Governance and Access: Governance arrangements of KSEI and KPEI align with the recommendations, but access and exit criteria for KPEI should be more specific.
• Cost-Effectiveness: The STP project aims to enhance the efficiency of the capital market.
• Cross-Border Settlement: Currently, there are no cross-border links for settlement, and the use of SWIFT is recommended to improve cross-border transaction efficiency.
• Transparency and Regulation: All systems, especially the two CSDs, should be regulated in a comparable manner. BI should include KSEI and KPEI in its oversight scope, and cooperation between BI and Bapepam-LK should be formalized.

Key Recommendations

• Legal Framework: Include netting, finality, and DVP in the legal framework.
• Settlement Cycle: Standardize the settlement cycle to T+3 for all stock exchange transactions.
• CCP Improvements: Enhance access criteria, financial risk management, and operational procedures for KPEI.
• Guarantee Fund: Implement back tests and regular reviews for the margin model and guarantee fund.
• Intraday Credit: Introduce intraday credit and risk controls for participants.
• Cash Settlement: Consider introducing cash settlement in the BI-RTGS system.
• Operational Procedures: Develop contingency plans and ensure geographical separation of primary and secondary sites.
• Custody Safeguards: Ensure asset separation and clear record-keeping for custodians.
• Governance and Access: Improve access criteria for KPEI to reflect CCP-specific requirements.
• Cross-Border Settlement: Expand use of SWIFT and improve conversion from international to domestic procedures.
• Regulatory Oversight: Regulate all systems, especially CSDs, in a comparable manner and formalize cooperation between BI and Bapepam-LK.

Conclusion

The assessment highlights the need for legal, operational, and structural improvements in Indonesia's securities settlement systems. These improvements are essential to enhance the stability, efficiency, and resilience of the capital market, in line with international standards.