Indonesia to Limit Foreign Ownership of FX E-Trading Platforms

An official from Bank Indonesia, the central bank of the country, revealed this Tuesday that Indonesia would limit foreign ownership of electronic trading platforms for foreign exchange (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) and money markets, according to a report from Reuters.

According to Agusman, who is the executive director of financial market deepening at BI, as of October 31, 2019, the maximum foreign ownership for any company that provides electronic trading platforms for FX will be set at 49 percent.

Agusman, who uses one name, also told a news briefing that the company needs to operate as a limited liability entity and maintain minimum equity of 10 billion rupiahs ($700,000) and have a paid-up capital of at least 30 billion rupiahs when establishing the company.

Furthermore, for existing Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term providers with foreign ownership, the central bank will apply a three-year transition period, to allow firms to comply with the new measures.

In order to comply with the new cap, providers of electronic trading platforms must have safe and reliable infrastructure, adhere to rules regarding the safety of transaction data and operate with good governance.

Indonesia Limits Foreign Investment as China Opens Up

The cap from the central bank of Indonesia is the same rate that China previously imposed for securities firms - 49 percent. Before August of 2018, foreign companies could not have a stake in a Chinese securities firm that exceeded 49 percent.

However, in August of last year, the China Securities Regulatory Commission (CSRC) issued rules to raise the ceiling on foreign ownership of China-based securities firms to 51 percent.

Towards the end of last year in November, the CSRC gave the first approval for a foreign firm to take advantage of this, which was granted to Swiss firm UBS Group AG which raised its shareholding in UBS Securities Co. Ltd. to 51 percent.