Best Practices In Jakarta
Algorithmic trading, FIX connectivity, infrastructure and data management in Indonesia.
Jakarta Roundtable Writeup
On the 27th February 2013 the GlobalTrading journal, in collaboration with Equinix, Interactive Data and ULLINK hosted a roundtable in Jakarta, Indonesia to discuss best practices in electronic trading with local brokers. Over 20 sell-side delegates, representing more than 13 local firms attended, alongside international brokerage representation by Josephine Kim of BAML and Indonesia Exchange representation from Johanes Liauw. The most heated elements of the panel were when talking around the safety and accessibility of algorithms.
With differing levels of expectation and uptake, education around what connectivity is required, how FIX can be added to enable greater electronic trading, and how to ensure the risk management of algorithmic trading, the panel was asked a number of questions around infrastructure, data management and software solutions.
“Thank you for the invite to the event today, very useful and great to share similar experiences with others and a brilliant opportunity to meet others from the industry face to face to discuss how we can evolve and encourage the use of FIX locally. I look forward to 2014 and hope to be able to attend.”
Miles Remington, Head of Equities, Indonesia BNP Paribas,
“APEI was very pleased to be able to work together with GlobalTrading, who kindly hosted the Roundtable with APEI members. It was a very eye-opening session, introducing how to approach best practices in electronic trading (with the presence of Equinix, Interactive Data, and ULLINK). We look forward to working together with GlobalTrading to add value to the securities industry in Indonesia.”
Lily Widjaja, Coordinating Chairperson, Association of Indonesian Securities Companies (APEI)
“ULLINK is very thankful to the Indonesian brokers who were able to attend the lunch. As takeaways, we understood that;
- Regulation is there to attract foreign business and liquidity
- Risk management is a strong component of the business and should not be neglected
- FIX connectivity is crucial and must be scalable and robust”
Philippe Thomas, Managing Director, ULLINK
“It’s been interesting and a valuable experience joining the event hosted by GlobalTrading, as we wish to have an open mind on how the market is currently working and evolving.
FIX connectivity is already commonly implemented all over the globe, and should be recognised and understood by local parties to encourage the growth of the Indonesian capital market. However, to implement FIX connectivity there will be an impact on the cost of investment, and it is our responsibility to find a solution, instead of avoiding the fact that in terms of technology and operations, FIX connectivity is reliable and can encourage market growth.
Many thanks to GlobalTrading for giving us the opportunity to join the event, and hope that this kind of event will be repeated.”
Ria Yusriana, Head of IT & Business Solution, Mandiri Sekuritas
“Another successful event in Jakarta. As we have seen, more investors are looking at ASEAN countries for trading; it was a great opportunity to sit down with market experts to discuss current affairs and seek mutual partnerships.”
Josephine Kim, Director, Global Execution Services Bank of America Merrill Lynch
“Obtaining transparent and clean data fast is an on-going challenge. We are in a world where IT cost pressures are everywhere, especially on risk/compliance systems. Global clients need to understand local ASEAN markets from a technology perspective which can present a barrier to entry where local traders have an advantage. However local traders may have limited experience with advanced trading algos so an on-going educational process is important to keep awareness high.
The event in Jakarta was a well-attended and organised event. It was encouraging to see so many senior delegates from both local and international institutions make the time to attend and participate.”
Levent Mehmet, Head of Sales Southeast Asia, Interactive Data
“Equinix recognises Jakarta as a key and rapidly emerging global financial market. Equinix is committed to support that success and growth servicing both international customers entering Indonesia, and enabling domestic participants leverage international opportunities. The level of interest shown at the event is heartening and is a clear indicator of the domestic participants desire to play a larger role in the global financial markets.”
David Wilkinson, Senior Director Business Development, Equinix