CCP SBNT Rule Books Drafting for the Implementation of OTC Derivative Transactions



AHRP is proud to assist Kliring Penjaminan Efek Indonesia in composing and drafting the set of rule books, providing the regulation gap analysis, improving the default waterfall mechanism by assessing the form and placement of the Initial Margins, Variation Margins, and Default Fund Contributions as a way of guarantees, and accompanying in the Forum Group Discussion (FGD) with Indonesia Foreign Exchange Market Committee (IFEMC) for the setting up of Central Counterparty for Over-the-Counter Interest Rate and Exchange Rate Derivative Transactions (CCP SBNT).


PT Kliring Penjaminan Efek Indonesia will be the first CCP SBNT institution being established in the Republic of Indonesia in an attempt to facilitate money market derivates trading, meaning that these works have no precedents and require a complex understanding of CCP SBNT’s roles as an institution and how the derivative transactions occur.


The CCP SBNT, first introduced through the enactment of Bank Indonesia Regulation No. 21/11/PBI/2019, aligns itself between parties entering into Derivative Transactions and acts as a buyer for the seller side and as a seller for the buyer side. The CCP SBNT aims to mitigate interconnectedness and risk arising from the previously executed bilateral transactions and to support establishing an in-depth, liquid, efficient, inclusive, and secure market.


Our team was led by our Senior Partner Abdul Haris M. Rum, together with our Senior Associate Aryangga Pradana Febrianto, and assisted by associates Fatya Alesi Ahmad Farizi & Merina Elfian.


Once again, it is our tremendous pleasure to be involved in such works and contribute to developing the first CCP SBNT institution in Indonesia.