BEI Introduces New Features to Enhance Stock Trading Transparency
The Indonesia Stock Exchange (IDX) has introduced new features to its trading system called Indicative Equilibrium Price (IEP) and Indicative Equilibrium Volume (IEV) on December 6, 2021. These features aim to increase transparency in the formation of opening and closing stock prices.
Irvan Susandy, Director of Trading and Regulation at IDX, explained that the implementation of IEP and IEV is a significant step towards creating more transparent trading for investors.
Previously, the pre-opening and pre-closing sessions used a call auction mechanism without providing IEP and IEV information to investors.
“With the presence of IEP and IEV, investors can obtain information on indicative prices and volumes that will be matched at the end of the session,” said Irvan.
Additionally, Irvan emphasized that the role of IEP and IEV is crucial in stock trading on the Special Monitoring Board. In the periodic call auction mechanism, only IEP and IEV are displayed as indicative information on prices and trading volumes. This enables investors to participate in stock trading by utilizing real-time available information.
“For example, if an investor wants to buy a stock with an existing IEP value and the investor wants to place a buy order, they can enter at the IEP price considering the availability of volume at IEV. If the investor wants a greater matching potential, they can use a market order or place a buy order slightly above the IEP value while monitoring the IEP movement because IEP and IEV will be calculated in real-time with every order book change,” he added.
To utilize this feature, Irvan said investors can access IEP and IEV information through online trading or mobile trading applications owned by Exchange Members during pre-opening, pre-closing, and periodic call auction sessions for stocks on the Special Monitoring Board.
Furthermore, this information is also available through the free IDX Mobile application. “By utilizing IEP and IEV information, investors can obtain indicative price information that will be formed and the volume to be matched at the IEP price at the end of the session,” he concluded.
