Indonesia - Clearstream

Settlement process
Settlement cycles
Equities (scripless): T+3
Fixed income securities (scripless): Negotiable between buyer and seller, usually T+2 or T+3
Settlement flow
Indonesia
Equities and corporate bonds
Settlement at the KSEI’s Book-Entry Settlement System (C-BEST) is conducted on a real-time basis,
provided that instructions are matched and sufficient funds and/or securities are available.
Although same-day turnaround of instructions is an accepted practice, it is not currently possible to link
the two legs of the transaction in C-BEST and as a consequence, settlement of these types of
transaction may require the additional support of local custodians.
KSEI has appointed four payment banks to assist in their cash settlements. A realignment process,
implemented between the payment banks and run three times a day, “squares off” cash positions
between the payment banks but is not transparent to KSEI participants.
T+0: Trades are executed on the JSX and trade confirmations are sent to the investors.
T+1 - T+2: Settlement instructions are sent to the custodian for pre-matching. Prematching
is conducted on a 'manual' basis between custodians and is not
binding. The selling broker also contacts the seller’s custodian to pre-match the
transaction.
T+2: For receipt against payment transactions, the buyer must have funds available in
their account with the custodian to ensure that cash can be transferred to the
payment bank on the morning of T+3.
T+3: The buying broker delivers the shares to the buyer’s custodian bank. The selling
broker receives the shares from the seller’s custodian bank. For against payment
trades, cash settlement takes place on a net basis at one of four Payment Banks
and securities settlement takes place in C-BEST at the KSEI. Cash is transferred
between custodian and KSEI Nostro accounts at the Payment Banks via BI's
RTGS system. The transfer of securities and then cash for against payment
transactions is completed by 12:00 for on-exchange trades and by 15:00 for offexchange
trades. Confirmation of settlement is sent when the trades are
confirmed as settled by KSEI and subsequently settled in the custodian’s system.
Government bonds
Settlement at the BI Scripless Securities Settlement System (BI-SSSS) is conducted on a real-time
basis.
T+0: Trade is executed.
SD-1: Sub-registry receives instructions and these are pre-matched with the
counterparty.
SD: Sub-registry inputs trade instructions into BI-SSSS for matching and settlement.
BI-SSSS checks availability of cash and securities. When matched, securities and
then cash are transferred immediately on a real-time gross settlement basis.
While securities are settled via BI-SSSS, payments are effected in BI-RTGS
system via payment from the buyer’s to the seller’s sub-registry demand deposit
account with BI. BI-SSSS and BI-RTGS are electronically linked.
Clearstream Banking
20 December 2011
Market Profile Indonesia - 5