Bank Indonesia Regulation No. 10/2/PBI/2008 concerning Bank Indonesia – Scripless Securities Settlement System - Bank Sentral Republik Indonesia
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October 01, 2020
Summary Bank Indonesia Laws

Regulation : Bank Indonesia Regulation Number 10/2/PBI/2008 dated February 4, 2008, concerning Bank Indonesia – Scripless Securities Settlement System
Effective date : February 4, 2008

Summary :

  1. Bank Indonesia - Scripless Securities Settlement System (BI-SSSS) is a system that provides transaction facilities with Bank Indonesia including its administration and electronic securities administration, seamlessly interconnected among Participants, the Operator, and the BI-RTGS System.
  2. BI-SSSS Operator is Bank Indonesia as the BI-SSSS Operator which conducts Transactions with Bank Indonesia and its administration and Securities Administration. Transactions with Bank Indonesia include, among other things, transactions in Open Market Operations (OMO) conducted by Bank Indonesia, extension of Funding Facilities from Bank Indonesia to Banks, and transactions of Government Securities (SBN) including Government Bond (SUN) for and on behalf of the Government.
  3. BI-SSSS Participants are Bank Indonesia, the Ministry of Finance of the Republic of Indonesia, Banks, Depository and Settlement Institutions, Rupiah and Foreign Exchange Money Market Brokerage Companies, Securities Companies, and other institutions approved by Bank Indonesia which perform function as Securities Issuer, OMO and Funding Facility Participants, SBN Auction Participants, and/or holders of Securities Account with the Central Registry.
  4. Membership status in the BI-SSSS comprises active, freeze, and closed. The membership status may be changed by the Operator on request of Participant’s business supervisor, sentence of the court with a final and binding legal force, or written request of the concerned Participant.
  5. The Operator conducts Transactions with Bank Indonesia by auction and/or no auction. Auction/transaction participant may bid directly or by designating other Participant as the broker.
  6. The Securities in the BI-SSSS are administered by a two tier system, namely :
    1. the Central Registry (Bank Indonesia), which administers Securities for Banks, Sub-Registries, and other parties holding Securities accounts with the BI-SSSS; and
    2. the Sub-Registry (Banks, Depository and Settlement Institutions, and Securities Companies), which administer Securities for customers.
  7. Securities transaction settlement through the BI-SSSS shall be final and implemented by DVP or FoP.
  8. Securities Transaction Fund Settlement for any Participant which is no BI-RTGS System Participant shall be implemented by designating a Bank participating in the BI-RTGS System as the Paying Bank by determining the maximum nominal value per transaction and total nominal value of transactions per day in an agreement or internal procedure of the Bank participating in the BI-RTGS System.
  9. In BI-SSSS operations the Operator performs and has the authorities, among other things, to :
    1. prescribe, among other things, operating hours and types and amounts of fees for the application of the BI-SSSS;
    2. prescribe BI-SSSS operating procedures either in normal and abnormal condition or state of emergency;
    3. debit Demand Deposit Account of Participant and Bank designated by Participant and/or Securities Account;
    4. discontinue Securities transaction settlement in secondary market before maturity (early redemption) for transaction with two processes of settlement under request of one of Participants, sentence of the court and/or arbitration institution which has a final and binding legal force; and
    5. exercise supervision either directly or indirectly on Participant, Sub-Registry, and any other party assigned by Bank Indonesia to support Securities Administration.
  10. Based on the supervision results, the Operator may impose administrative sanctions in the form of written warning on Participant which fails to fulfill the requirements as Participant and abrogation of approval as Sub-Registry if the Sub-Registry Participant fails to comply with provisions concerning Securities Administration stipulated by Bank Indonesia.
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