KPEI Rule Book Launch: A Game Changer for Banks Eyeing CCP Membership Within PUVA Sector

Given the importance of Central Counterparty institutions that serve as intermediaries between parties that engage in money and/or foreign exchange market (Pasar Uang dan/atau Pasar Valuta Asing– “ PUVA ”) transactions (“ CCP ”) [1] for non-Bank Indonesia (“ BI ”) organizers of financial market infrastructure (N.B. it should be noted that PT Kliring Penjaminan Efek Indonesia [“ KPEI ”] has already secured a BI permit to operate as a CCP), KPEI has decided to introduce a number of applicable provisions and procedures for the organization of the CCP. Said provisions and procedures largely relate to the clearing and settlement of PUVA transactions (“ Rule Book ”) [2] and have now been introduced through the issuance of Decree No. KEP-042/DIR/KPEI/0924 (“ Decree 42/2024 ”), which has been in force since 30 September 2024. [3]