Membership

  • Clearing Member is defined as an Exchange Member or another party who fulfils the requirements to obtain  Clearing services and Settlement Guarantee of securities exchange transactions based on Regulation of Clearing and Guarantee Institution as stipulated in Article 1 Number 6 of Indonesia FSA Regulation No. 26/POJK.04/2014 on Securities Exchange Transaction Settlement Guarantee.

    1. Has been an Exchange Member;
    2. Submits Exchange Stock (IDX Seat) to KPEI;
    3. Meets the risk eligibility criteria based on KPEI's assessment, especially in terms of credit risk;
    4. Possesses a system to support the operations and risk control related to Exchange Transactions;
    5. Has signed the agreement on provision of services of clearing and exchange transaction settlement guarantee, and securities borrowing and lending;
    6. Has paid the initial Guarantee Fund contribution amounting to Rp5,000,000,000 (five billion rupiah), unless the majority shareholders of the prospective Clearing Member are parties who have previously become Clearing Members;
    7. Has deposited a Collateral in the form of Minimum Cash Collateral amounting to Rp1,000,000,000 (one billion rupiah).
    1. A prospective Clearing Member must fill out the Clearing Member Registration Form and attach the following documents:
      - A copy of the company’s articles of association, the deed of the company’s composition of the management and their amendments;
      - The previous year’s audited financial statements;
      - A sample of the company’s stamp, a specimen of the signatures of the Board of Directors’, the Board of Commissioners’, or other authorized officials representing the company in accordance with the Articles of Association;
    2. KPEI shall review the documents submitted by the prospective Clearing Member and assess the preparedness of the operational and risk control system of the prospective Clearing Member within 10 (ten) Exchange Days.
    3. Based on the assessment results, the following conditions shall apply:
      - In the event that the prospective Clearing Member meets the requirements to become a Clearing Member, KPEI will deliver a letter of approval to the prospective Clearing Member.
      - In the event that the prospective Clearing Member does not meet the requirements to obtain services of clearing and exchange transaction settlement guarantee, KPEI will deliver a notification letter informing the refusal along with the reasons to the prospective Clearing Member.
      - The prospective Clearing Member who does not meet the requirements to become a Clearing Member may reapply to become a Clearing Member.
    4. In the event that KPEI has submitted a letter of approval to the prospective Clearing Member, then the prospective Clearing Member must carry out the following:
      - Sign the Agreement on provision of services of clearing and exchange transaction settlement guarantee, and Securities Borrowing and Lending.
      - Pay the initial contribution of the Guarantee Fund amounting to Rp5,000,000,000 (five billion rupiah)
      - Deposit Collateral in the form of Minimum Cash Collateral and submit a copy of the proof of deposit to KPEI.
      - Submit Exchange Stock (IDX Seat) to KPEI.
      - Submit a copy of the Exchange Member Approval Letter (SPAB).
    5. KPEI shall issue a Clearing Member Approval Letter (SPAK) within a maximum of 2 (two) Exchange Days after the prospective Clearing Member has fulfilled the above requirements.

     

  • Clearing Members’ rights are:
    1) To use the facilities provided by KPEI for the benefit of Clearing Members in accordance with KPEI Regulations.
    2) To obtain reports and information provided by KPEI concerning clearing and exchange transaction settlement guarantee.
     
    Clearing Members’ obligations are:
    1) To be aware of and comply with KPEI Regulations.
    2) To open a Settlement Securities Account in accordance with KSEI Regulations.
    3) To open a Securities Guarantee Sub Account for the benefit of Exchange Transaction Settlement of the Clearing Member’s Client in KSEI.
    4) To be responsible for fulfilling any obligations arising from every Exchange Transaction carried out for the interests of both the Clearing Member and its Client.
    5) To submit its Mid-Year Unaudited Financial Statements and Annual Audited Financial Statements to KPEI.
    6) To report to KPEI within no later than 5 (five) Exchange Days as of:
    a. Any change made to the special list as referred to in Article 50 clause (2) of Law No. 40/2007 on Limited Liability Companies;
    b. Any occurrence of affiliation or changes in affiliation relations among the members of the Board of Directors, Board of Commissioners members, Clearing Member, or its controlling shareholders, or controlling shareholders of the Clearing Member’s shareholders if these shareholders are legal entities;
    c. Any occurrence of addition or reduction of employees that have an individual license from Indonesia FSA as a Representative of Securities Company;
    d. Any occurrence of legal issue or dispute between the Clearing Member and its Client or other parties;
    e. Any occurrence of changes related to the Clearing Member, including but not limited to its:
    - Capital structure;
    - Shareholders;
    - Members of the Board of Directors and members of the Board of Commissioners;
    - Organizational structure;
    - Company name and address
    7) In the event that the Clearing Member amends its Articles of Association, the Clearing Member must submit a report to KPEI no later than 7 (seven) days from the date of approval receipt or the receipt of notification of amendment to the Articles of Association from the authorized institution in accordance with Law No. 40/2007 on Limited Liability Companies.
    8) Clearing Member’s Reports as referred to in points 5, 6, 7 above can be submitted in electronic format (softcopy).
    9) In the event that the Clearing Member outsources its bookkeeping function and/or information technology function to other parties as referred to in point 13 of the Bapepam and LK Regulation No. V.D.3 on Internal Control of Securities Companies Performing Business Activities of Securities Brokerage, Attachment to the Decree of the Chairman of Bapepam and LK No. Kep-548/BL/2010, the Clearing Member must report to KPEI on the following matters:
    a. No later than 7 (seven) Exchange Days prior to the date of Implementation of the transfer (outsourcing) of function to other parties, and attach a copy of the agreement between the Clearing Member and the service provider;
    b. Whether there is an issue that causes such function outsourced to other parties to fail to operate properly, no later than the following Exchange Day after the occurrence of such issue.
    c. No later than 7 (seven) Exchange Days prior to the termination date of the outsourcing of the function to other parties.
    10) The Clearing Member is obliged to continuously maintain its condition in order to continue meeting the requirements as a Clearing Member, including maintaining its condition to be operationally feasible and fulfilling the placement of the Minimum Cash Collateral in accordance with the amount determined by KPEI.
     
    1. KPEI may revoke the Clearing Membership Agreement if there is a revocation by the Indonesia Stock Exchange of the Exchange Member Approval Letter (SPAB) of a Clearing Member.
    2. In the event that a Clearing Member’s Approval Letter is revoked: 
      1) KPEI will publish a KPEI Announcement regarding the revocation;
      2) KPEI will deactivate all facilities related to services of clearing and exchange transaction settlement guarantee provided to the Clearing Member;
      3) Should, after the revocation of the Clearing Member’s Approval Letter (SPAK), there be some obligations of the Clearing Member remaining, then: 
    • The revocation does not eliminate the responsibility of the revoked Clearing Member to settle all their obligations to other Clearing Members, KPEI, and/or other parties in accordance with the prevailing provisions; and
    • KPEI has the authority to withhold the rights of the revoked Clearing Member or to use the Collateral of the revoked Clearing Member to service the Clearing Member’s obligations.
  • KPEI provides services related to Clearing Membership, including:
    1) Request for a reset of the KPEI pincode system used by Clearing Members.
    2) Request for information through m-CLEARS.
    3) Training/information dissemination to Clearing Members regarding KPEI products, services, and its operations.