Nasdaq (NASDAQ:NDAQ) and the Indonesia Stock Exchange (IDX) today announced an expansion of their technology partnership, which will see IDX upgrade its core trading platform to Nasdaq’s most advanced matching engine.
The agreement also includes an expansion of Nasdaq’s market surveillance partnership with IDX and an agreement to enhance IDX index activity to help foster a deeper and more sophisticated global capital markets ecosystem.
The deal builds on Nasdaq’s wide range of partnerships across the Indonesian financial system. In addition to Nasdaq’s long-standing relationship with IDX, Nasdaq provides market surveillance technology to OJK, the Indonesian Financial Services Authority, the core technology platform underpinning KSEI, Indonesia’s central securities depository, and Calypso’s solution to Bank Indonesia, the country’s central bank.
Collectively, greater interoperability across the fabric of Indonesia’s financial system will reduce overall complexity and friction, ultimately helping to create a more efficient capital markets ecosystem.
IDX’s decision to modernize its underlying architecture is in line with the strategic pillars set by OJK to develop a strong, stable and sustainable capital market that can support the continued growth of the Indonesian economy.
Sunandar, Director of IT and Risk Management at IDX, said:
“With this upgrade of trading system and technology infrastructure, we envision to become more competitive and remain attractive to both domestic and international investors. We believe this partnership will accelerate the progress of Indonesia’s capital market modernization while supporting sustainable economic growth.”
Nasdaq’s modular and scalable platform will support IDX’s continued ability to serve Indonesia’s capital market as its economy grows. The platform supports trading in traditional asset classes, including equities, fixed income, foreign exchange and derivatives, as well as digital assets, providing the flexibility to support IDX’s goal of increasing the number of products and services it offers clients. Additionally, by bringing flexible architecture to the index business, IDX will be able to rapidly design and launch new indices as growth opportunities arise. Ultimately, the new platform will quadruple trading capacity while supporting a deterministic, low-latency trading experience.
Magnus Haglind, Head of Marketplace Technology at Nasdaq said:
“Nasdaq plays a critical role at the heart of Indonesia’s modernization story. We welcome the opportunity to support the vision and ambition of the Indonesia Stock Exchange to become a world-class stock exchange. By supporting the development of a deep and sophisticated capital markets ecosystem in Indonesia, we can contribute to the achievement of growth and prosperity across the country and the wider region.”