JAKARTA: Surabaya Stock Exchange (SSX) is ready to open the secondary market of exchange traded fund (ETF) in 2007 and hopes the regulation on this will be ready by the end of the year. The Director of SSX Guntur Pasaribu said the plan has been the part of SSX’s working plan in 2007. The Capital Market and Financial Institution Supervisory Board (Bapepam LK) is studying the regulation on the exchange traded fund, and hopes to conclude it this year.
“Therefore, we hope to have run this market next year. Bapepam is reviewing the regulation,” he said yesterday.
Exchange Traded Fund (ETF) is the mutual fund with the return of as same as the reference indices of the shares listed at the stock market.
With the ETF, Guntur said, a fund owner can sell the unit at the secondary market. So far the owner of mutual fund can sell the unit to the fund manager.
“With the ETF, the money of fund manager can be allocated for other investment,” he said.
If a fund manager holds too much cash, the net assets value will be lower and the yield of the fund will be lower.
The data of Bapepam-LK, said that the net assets value of Indonesian mutual fund was IDR108.22 trillion, consisting of IDR90.98 trillion of fixed income fund, IDR2.26 trillion of stock fund, IDR5.55 trillion of mixed fund, and IDR9.41 trillion of money market fund.
The bourse also set the target that 30 members will be active in derivative trading, with the 300 contract per day. The bourse set the target to post the operating profit of IDR8.36 trillion next year from the shares and derivative trading. (Bisnis/ags)