Investor Stock Transaction Freeze – What You Need to Know
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Indonesia Stock Exchange to Implement Non-Cancellation Rule in Pre-Opening and Pre-Closing Sessions
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Jakarta, CNBC Indonesia – The Indonesia Stock Exchange (BEI) announced on December 12, 2023, that it will implement a non-cancellation period during its pre-opening and pre-closing sessions, effective December 18, 2023.This change aims to enhance market efficiency and reduce volatility. was the date of the official proclamation.
What is the Non-Cancellation Rule?
Currently, orders entered during the pre-opening (9:00-9:15 local time) and pre-closing (15:45-16:00 local time) sessions can be cancelled before the matching process. The new rule prohibits the cancellation or modification of orders submitted during these sessions. This means once an order is entered, it must remain in the system until it is either executed or the session ends. Indonesia Stock Exchange Official Announcement
Why is the BEI Implementing This Change?
The BEI believes this change will lead to several benefits.Firstly, it will reduce the potential for manipulative trading practices, as traders will be less able to quickly react to and exploit short-term price fluctuations. Secondly, it will provide greater price certainty, as the orders entered during these sessions will be more likely to be executed at a stable price. it is expected to improve market efficiency by reducing the number of cancelled orders and streamlining the matching process. According to the BEI, the rule is designed to align Indonesian market practices with international standards. The Jakarta Post
Impact on Traders and Investors
The new rule will require traders and investors to carefully consider thier orders before submitting them during the pre-opening and pre-closing sessions. Impulsive or speculative orders may be more risky, as they cannot be easily cancelled. Investors should be prepared for the possibility that their orders will be executed at the prevailing price,even if it is less favorable than anticipated. The BEI has stated it will provide educational resources to help traders and investors understand the new rule and its implications.
Potential Benefits for Long-Term Investors
while perhaps adding complexity for short-term traders, the rule could benefit long-term investors by fostering a more stable and predictable market habitat. reduced volatility and manipulative practices can contribute to more enduring price finding.
Timeline of Implementation
| Date | Event |
|---|---|
| December 12, 2023 | BEI announces the non-cancellation rule. |