The Indonesia Stock Exchange (IDX) will issue new regulations in February to expand margin trading on the bourse, a senior official at the country's capital market regulator told reporters last Monday.
The move will expand the number of stocks available for margin trading to 179 from 57 currently, and also provide trade financing facilities to certain brokers, according to Nurhaida, capital market supervisor at Financial Services Authority.
"There are two things we want to achieve here: increase the (volume of) transactions at the exchange and incentivise brokers to improve their net adjusted working capital," Nurhaida said, referring to brokers' capital adequacy level.
The exchange expects these measures to help increase transaction volume by 30 percent. The stock exchange is currently revising the criteria for margin trading stocks, said IDX Chief Executive Tito Sulistio.