BI Welcomes New Money Market Infrastructure

Jakarta: Bank Indonesia (BI) has welcomed the implementation of new money market infrastructure for FX Spot transactions in US dollars against the Rupiah, known as the Electronic Trading Platform (ETP) Multimatching System. 
 
On Wednesday, the launch was marked by the very first transaction using such infrastructure in the domestic money market and signifies a new milestone in the history of Indonesia's money market.
 
"ETP Multimatching System implementation aims to accelerate digitalisation and strengthen reliable, efficient, secure and integrated money market infrastructure as one of the overarching goals of Bank Indonesia’s Money Market Development Blueprint 2025," BI Communication Department Head Erwin Haryono said in a press release on Thursday. 

"Bank Indonesia will continue to expand use of the ETP Multimatching System for other money market products towards the manifestation of a modern and advanced money market to support national economic financing, monetary policy transmission effectiveness and financial system stability in Indonesia," he added.
 
The ETP Multimatching System facilitates multilateral transactions, thus enhancing efficiency and increasing transparency in terms of price setting, while prioritising effective governance and risk management. 
 
In addition, the ETP Multimatching System also pools liquidity that is vital to create the best bid-ask prices, while anonymity maintains fairness. 
 
The system facilitates digital and modern money market transactions, where the quotation price is transparently accessible to all market players, complemented by end-to-end automation that omits the need for manual intervention, thus eliminating human error.
 
"Bank Indonesia appreciates the active contribution of ETP providers in terms of money market development in Indonesia. As the existing trading system continues to advance, ETP providers must safeguard system and operational resilience, while maintaining compliance to relevant Bank Indonesia regulations. This is necessary to maintain domestic market confidence and create a modern and advanced money market in Indonesia," he concluded.

 
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