The Indonesian Capital Market

Author : Swasti Kartikaningtyas
Publisher :
ISBN 13 :
Total Pages : 34 pages
Book Rating : 4.:/5 (129 download)

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Download or read book The Role of Central Counterparty as a Risk Mitigator in Capital Market Transaction in Indonesian Law Perspective written by Swasti Kartikaningtyas and published by . This book was released on 2008 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: All the Indonesian capital market authorities are doing many efforts to increase the quality and credibility of Indonesian Capital Market, one of them is with increasing the number of investors, so that the capital market able to perform maximum in supporting national economy. One of the obstacle that prevent the public interest to become investors is that they are afraid of the risk that may occurs in capital market investment. Dealing with such risks the Indonesian capital market authorities have applied the risk management efforts, which are done by the approach of the financial perspective, and the approach of legal perspective, considering capital market transaction as the regular sale and purchase transaction. One of the risk management efforts applied in Indonesian capital market is by the transfer of risk, from the Clearing Member to the Clearing and Guarantee Corporation that act as the central counterparty of stock exchange transaction. Such risk transfer is possibly done trough novasion, as the legal basis of the transfer of rights and obligation generated thereof. PT. Kliring Penjaminan Efek Indonesia (KPEI) as the only Clearing and Guarantee Corporation in Indonesia perform its function as the central counterparty by providing services completed with the risk management systems and the regulations regarding the clearing and guarantee to the settlement of stock exchange transaction issued by KPEI as the Self Regulatory Organization. All the above efforts are performed in order to create the orderly, appropriate and efficient stock exchange transaction. Therefore, the existence of the Clearing and Guarantee Corporation with all its services, regulations and infrastructure including the risk management application as one of the supporters of the orderly, appropriate and efficient settlement of stock exchange transaction must be socialized and informed to the public. Hopefully it can produce the image of a safe and profitable capital market investment, with the intention that it will attract the public participations to invest in Indonesian capital market.