Jakarta, CNBC Indonesia – The Indonesia Stock Exchange (IDX) stated that it is currently refining further rules regarding the use of trading robots in stock trading.
Currently, the IDX has allowed Exchange Member (AB) securities companies to use the features automated ordering. This includes Direct Market Access (DMA) and/or trading algorithms or in popular language often referred to as trading robots.
Director of Trading and Regulation of Exchange Members, Laksono Widodo, said that robot trading can be carried out by first submitting a plan for submitting orders electronically that will be used to the Exchange and can only be used after obtaining the Exchange’s approval.
“The stock exchange evaluates the order delivery pattern on the automated ordering feature to mitigate the orders that are submitted later, so they don’t cause manipulation of the market,” said Laksono, to the media crew, Monday (11/10/2021).
Currently, Laksono added, the stock exchange authority will further regulate regulations regarding trading robots in regulation III-K regarding direct order facilities and/or the application of automated ordering by Exchange Members, which will be accompanied by technical guidance related to this matter.
The arrangements in the guide include the mechanism for submitting orders, the provision that the order must not manipulate the market and the implementation of risk management of the AB, including the responsibility and obligation for the AB to monitor automated orders.
Furthermore, it is the obligation of the AB to have a person in charge (PIC, person in charge) who carries out the monitoring.
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