Jakarta. The Indonesia Stock Exchange (IDX) officially launched a new derivative product, the Single Stock Futures (SSF), on Tuesday.

IDX President Director Iman Rachman explained that SSF functions as a contract between two parties to buy or sell a stock at a predetermined price on a future date. The SSF uses the blue-chip LQ45 index constituents as its underlying assets.

"Investors interested in trading SSF can open a derivative account with a securities firm registered as a licensed derivative member of the exchange," Iman said at the launch event held at IDX headquarters in Jakarta.

IDX Director Jeffrey Hendrik added that the current focus is on encouraging member companies to join as derivative exchange members, which he views as essential for broadening investor access to SSF.

"Our goal now is to ensure enough member companies participate so we can effectively serve a large investor base. Today, three companies have joined as pioneers in the SSF launch, covering a significant number of investors. We hope more members will join soon, after which we’ll set additional targets," Jeffrey stated.

Out of 16 member companies that applied to join SSF trading, three—Binaartha Sekuritas, Ajaib Sekuritas Asia, and Phintraco Sekuritas—were officially inaugurated as derivative members. Binaartha Sekuritas will also act as a liquidity provider for SSF trading in the secondary market.

"An additional 12 to 13 members are in the pipeline. Their readiness will vary, with some expected to be ready by early Q1 next year and others potentially by Q2," Jeffrey concluded.