Indonesia Stock Exchange taps Nasdaq to build out market infrastructure

Extended partnership will enhance resilience of the exchange, alongside supporting the deployment of new products and services.

Nasdaq and the Indonesia Stock Exchange (IDX) have expanded their technology partnership which will see the former upgrade its core trading platform to Nasdaq’s most advanced matching engine.

The expanded partnership will also include an extension of Nasdaq’s market surveillance partnership with IDX, alongside an agreement to enhance IDX’s index business to help foster a global capital markets ecosystem.

Nasdaq already has a range of technology partnerships across the Indonesian financial system, including providing surveillance technology to Indonesia’s Financial Services Authority, OJK; the technology platform that underpins Indonesia’s central securities depository, KSEI; and its Calypso treasury solution to Bank Indonesia.

IDX’s decision to modernise its underlying architecture echoes strategic pillars set out by OJK to ‘develop a robust, stable, and sustainable capital market that can support the ongoing development of the Indonesian economy’.

“With this trading system and technology infrastructure upgrade, we envisage becoming more competitive and staying attractive for both domestic and international investors,” said Sunandar, director of information technology and risk management at IDX.

“We believe this partnership will speed up the modernisation advancement of the Indonesia capital market while supporting sustainable economic growth.”

Nasdaq’s platform supports trading in traditional asset classes as well as digital assets, offering the flexibility to support IDX’s plans to increase the number of products and services it offers to clients.

Elsewhere, by bringing new architecture to the Index business IDX will be able to quickly design and launch new indices.

“Nasdaq is playing a critical role at the heart of Indonesia’s modernisation story,” said Magnus Haglind, head of marketplace technology at Nasdaq.

“[…] By supporting the development of a deep and sophisticated capital markets ecosystem in Indonesia, we can help deliver growth and prosperity across the country and wider region.”