Circular Letter of the Financial Services Authority Number 8/SEOJK.04/2020 Concerning Contribution of Guarantee Funds Based on Transaction Value

To:

1. Board of Directors of PT Indonesia Stock Exchange;
2. Board of Directors of PT Indonesia Stock Exchange Clearing and Guarantee;
3. Board of Directors of PT Indonesia Central Securities Depository; and
4. Board of Directors of Clearing Members,

at their respective locations.

COPY

CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 8 /SEOJK.04/2020

CONCERNING

CONTRIBUTION OF GUARANTEE FUNDS BASED ON TRANSACTION VALUE

To provide incentives within the framework of revitalizing derivative products in the Capital Market, it is necessary to adjust the regulations regarding the amount of guarantee fund contributions by clearing members based on transaction value by adjusting the Financial Services Authority Circular Letter Number 23/SEOJK.04/2015 concerning Contribution of Guarantee Funds Based on Transaction Value to be as follows:

I. GENERAL PROVISIONS

1. Clearing Member means a stock exchange member or other party that meets the requirements to obtain clearing and settlement guarantee services based on the regulations of the Clearing and Guarantee Institution.

2. Guarantee Fund means a collection of funds and/or Securities that are administered and managed by the Clearing and Guarantee Institution, used to guarantee the settlement of Stock Transactions by the Clearing and Guarantee Institution.

3. Contribution of Guarantee Funds Based on Transaction Value means a certain amount of funds paid by Clearing Members as a contribution to the Guarantee Fund, the value of which is based on the value of the Clearing Member's transactions whose settlement is guaranteed by the Clearing and Guarantee Institution.

4. Stock Transaction means a contract made by stock exchange members in accordance with the requirements determined by the Stock Exchange regarding the sale and purchase of Securities, lending and borrowing of Securities, or other contracts regarding Securities or the price of Securities.

5. Forward Contract means an agreement that obligates the parties to buy or sell a certain amount of underlying assets at a specific price and within a specific time in the future.

6. Option means the right owned by a party to buy or sell to another party a certain amount of Securities at a specific price and within a specific time.

7. Sukuk means Shariah-compliant Securities in the form of certificates or proof of ownership that have equal value and represent an indivisible or undivided share (syuyu’/undivided share) of the underlying assets.

8. Clearing Members are required to pay a certain amount of funds as a contribution to the Guarantee Fund that cannot be withdrawn to ensure the smoothness and security of the settlement of Stock Transactions.

II. AMOUNT OF CONTRIBUTION OF GUARANTEE FUNDS BASED ON TRANSACTION VALUE IN STOCK TRANSACTIONS

1. The Contribution of Guarantee Funds Based on Transaction Value for Stock Transactions is 0.01% (one ten-thousandth) of the value of each Stock Transaction.

2. The Contribution of Guarantee Funds Based on Transaction Value specifically for:
   a. Stock Transactions over Forward Contracts, is 0.0003% (three one-millionths) of the value of each Forward Contract transaction; b. Stock Transactions over Options contracts, is 0.01% (one ten-thousandth) of the value of the Options contract; and
   c. Stock Transactions over debt-type Securities and Sukuk, is 0.00125% (one hundred twenty-five ten-millionths) of the value of each debt-type Securities and Sukuk transaction.

• 3 -

This copy is in accordance with the original

Deputy Director of Legal Consultation and
Harmonization of Banking Regulations 1
Legal Directorate 1
Legal Department

signed

Wiwit Puspasari

III. CLOSING

1. At the time this Financial Services Authority Circular Letter takes effect, the Financial Services Authority Circular Letter Number 23/SEOJK.04/2015 concerning Contribution of Guarantee Funds Based on Transaction Value is revoked and declared invalid.

2. This Financial Services Authority Circular Letter takes effect on the date of determination.

Determined in Jakarta on May 26, 2020

EXECUTIVE HEAD
OF CAPITAL MARKET SUPERVISOR
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA,

signed

HOESEN