The Indonesia Stock Exchange (IDX) is upgrading its core trading platform to Nasdaq’s “most advanced” engine, allowing the exchange to quadruple transaction capacity and support the archipelago’s burgeoning capital markets and economic development.
The modular and scalable platform supports trading in traditional asset classes, including equities, fixed income, foreign exchange, and derivatives, as well as digital assets, providing the flexibility to support IDX’s objective of increasing the number of products and services it offers to clients.
Sunandar, director of information technology and risk management at IDX, said: “With this trading system and technology infrastructure upgrade, we envisage becoming more competitive and staying attractive for both domestic and international investors. We believe this partnership will speed up the modernisation advancement of the Indonesia capital market while supporting sustainable economic growth.”
IDX has seen trading volumes increase 65% since 2019, while the total number of investors trading on its exchange has grown by more than 400% to 12.6 million. Today, IDX has 921 companies listed on its exchange, an increase of 49% over the same period.
Magnus Haglind, head of marketplace technology at Nasdaq said: “Nasdaq is playing a critical role at the heart of Indonesia’s modernisation story. We welcome the opportunity to support Indonesia Stock Exchange’s vision and ambition to become a world-class exchange. By supporting the development of a deep and sophisticated capital markets ecosystem in Indonesia, we can help deliver growth and prosperity across the country and wider region.”
The partnership will also see an extension of Nasdaq’s market surveillance arrangement with IDX, and an agreement to enhance IDX’s Index business to help foster a deeper and sophisticated global capital markets ecosystem. By bringing flexible architecture to the Index business, IDX will be able to quickly design and launch new indices.
The agreement builds on Nasdaq’s partnerships across the Indonesian financial system. In addition to Nasdaq’s long-standing relationship with IDX, Nasdaq provides market surveillance technology to OJK, Indonesia’s Financial Services Authority, the core technology platform that underpins KSEI, Indonesia’s central securities depository, and its Calypso treasury solution to Bank Indonesia, the country’s central bank.
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