Jakarta. The Indonesia Stock Exchange (IDX) will soon implement a non-cancellation period this December.

During this period, which takes place at pre-opening and pre-closing sessions, orders cannot be changed or canceled. However, investors can still submit new orders. The non-cancellation period at the opening begins at 8.56 a.m. until the IDX automated trading system (JATS) matches the sell offers with the buy requests. The non-cancellation period atthe  pre-closing session begins at 3.56 p.m. until the matching process is complete.

This aligns with what other global exchanges have implemented to maintain the quality of the price discovery process and market stability.

"The Singapore Stock Exchange [SGX], Hong Kong Stock Exchange [HKEX], Shanghai Stock Exchange [SSE], and Philippine Stock Exchange [PSE], have implemented similar measures, so we hope to implement them at the IDX as well," Irvan Susandy, director of trading and exchange member regulation at the IDX, said.

"We hope to curb artificial price formation during the pre-opening and pre-closing sessions, as well as minimize the potential for spoofing, thereby promoting more reasonable price formation," he said.

The move is also expected to mitigate potential price manipulation, thereby safeguarding investor confidence. IDX will remain committed to informing the investors and market players about this new policy via its official channels.

"We have conducted a series of outreach programs for market players, particularly the exchange members and licensees, both local and foreign, and updated information on the non-cancellation period on the IDX website, which is accessible to the public," Irvan said.