OJK Tightens Underlying Asset Requirements for Securities Derivatives

The Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) is currently finalizing a draft OJK regulation on Financial Derivatives with Securities as the Underlying Assets. The regulation will further develop and provide greater detail to the initial legal framework established under OJK Regulation No. 1 of 2025 (“POJK 1/2025”), making it more comprehensive. 

“The Financial Services Authority adopts a comprehensive approach by combining prudential supervision, market conduct regulation, and investor protection across the entire derivatives ecosystem,” said Hasan Fauzi, OJK’s Chief Executive of Capital Market, Financial Derivatives, and Carbon Exchange Supervision.

The proposed amendments to POJK 1/2025 will also establish stringent criteria for securities that may be used as underlying assets. Domestic shares eligible to serve as underlying assets must be included as constituents of the three leading benchmark indices on the stock exchange, have been listed for at least one year, and have not been subject to a trading suspension during the preceding six months. Meanwhile, individual foreign shares must be listed on a stock exchange in a country that is a member of the International Organization of Securities Commissions (“IOSCO”) and have maintained a minimum free-float market capitalization of IDR 1 trillion over the preceding 12 months.

“The completion of this regulation is in line with the target for other regulations, such as the OJK Regulation on the Demutualization of Stock Exchanges, which is targeted for completion in the second week of September 2026,” he added.