PT Kliring Penjaminan Efek Indonesia (KPEI)
Brief Introduction
This Memorandum of Understanding between the Central Securities Depository of Iran and Indonesia Clearing and Guarantee Corporation (Kpei) was signed by the CSDI Chief Executive Officer, Hamed Soltani Nejad and KPEI Chief Executive Officer, Hasan Fawzi on 8 May 2013 at CSDI headquarters.
Objectives
- Expansion and development of communication channels and financial service industry.
- Creation and expansion of infrastructure and instruments in two countries' capital markets.
- Exchange of knowledge in law and regulations.
- Feasibility test of linkage between two countries' CSDs and Exchanges
- Creation of "R&D" Working Group on Islamic instruments, markets
An Introduction to Indonesia Clearing and Guarantee Corporation (Kpei)
In one of the historic events in the Indonesia capital market on August 5, 1996, a Clearing and Guarantee Institution (LKP) was founded with the name of Indonesia Clearing and Guarantee Corporation (KPEI) by notary deed dated Number 8 dated August 5, 1996. KPEI was inaugurated as legal entity on September 24, 1996 through ratification from the Minister of Justice of Republic of Indonesia. Currently, 100% of the KPEI paid up capital is owned by the Indonesia Stock Exchange (IDX) with authorized capital of Rp500 billion and a total paid-up capital of Rp200 billion.
KPEI as one of the Self-Regulatory Organization (SRO) under the supervision of the Indonesia Financial Services Authority (IFSA), is given the authority to make and implement regulations related to its function as LKP in Indonesian capital market. This is in accordance with the mandate of the Capital Market Law No.8 Year 1995, which states that the task of LKP is to provide exchange transaction clearing and settlement guarantee services in an orderly, fair and efficient manner as well as other services on IFSA’s approval.
KPEI in Indonesia capital market industry serves as LKP who performs exchange transaction clearing and settlement guarantee function. The clearing activity is done through a process of determining the rights and obligations of stock exchange transactions, for each Clearing Member (AK) which must be settled on the settlement date. The exchange transaction settlement guarantee function is done by providing legal certainty for the fulfillment of rights and obligations for AK arising from securities exchange transactions.
KPEI continuously improves the quality of services and products and strives to innovate on every service and product to meet market expectations. As part of institutional development, KPEI always performs infrastructure development, research and development, and strive to apply international best practices as Central Counterparty (CCP).
Joint Projects
- KPEI Active Presence At International Conference on Market Linkage Organized by CSDI
The 1st International Market Linkage Seminar was held in May 2013 at the CSDI headquarters in Tehran. The event was attended by top market executives from several Asian countries, including South Korea, Pakistan, Indonesia and board members of the Asia-Pacific CSD Group (ACG). KPEI's Director of Chief Executive Officer Hasan Fawzi was among the keynote speakers at the event.
- CSDI Technical Support to KPEI on Setting up ETF Trade in Indonesian Capital market
In June 2016, senior officials from KPEI attended a meeting held at CSDI in following up and implementation of the MoU signed between the two companies. At the meeting, the KPEI officials asked for various consultations and transfer the experience by the Iranian capital market practitioners regarding the launch of ETF trade, especially on the related rules, regulations and the pattern of launching ETF trade in the Iranian capital market.
CSDI, an ACG member since 2012, has become the grouping's board member since 2016. KPEI is also an ACG board member the fact that paved the way for joint cooperation between the two companies in various areas, especially the exchange of knowledge and experience and the promotion of multilateral cooperation between the member companies.
CSDI and three Indonesian companies of KPEI, KSEI and SIGMA held a joint training workshop of in June 2014 with the presence of more than 20 elite CSD practitioners and experts from these three Indonesian companies in order to share their experience in implementing the new settlement system of CSDI during the event held at the company's headquarters in Tehran.
