IDX begins trial to lower stock price floor to Rp 1
The Indonesia Stock Exchange (IDX) has started trials with exchange members to drop the minimum stock price floor from Rp 50 (0.28 US cents) to just Rp 1, ensuring readiness among the members and securities firms for the upcoming changes.
The Indonesia Stock Exchange (IDX) has initiated trials with its members to lower the minimum stock price floor from Rp 50 to just Rp 1. This move aims to increase liquidity and improve price discovery in the market. Currently, around eight exchange members have yet to participate in these trials. IDX president director Jeffrey Hendrik expressed that they will follow up with these members in the next trial round.
The plans also include focus group discussions to gather feedback from the exchange's members. Hendrik did not disclose a specific implementation date, stating that the move would proceed based on the readiness of the exchange's members to ensure a smooth transition. The decision to reduce the stock price floor was discussed with the Indonesian Securities Companies Association and the Indonesian Investment Manager Association, as well as global investors, on August 19.
Additionally, the bourse intends to adjust its upper and lower auto rejection (ARA and ARB) limits, which automatically reject buy or sell orders that would cause a stock price to deviate beyond the thresholds set by the IDX.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
