Indonesia Commodity & Derivatives Exchange (ICDX)

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Indonesia Commodity and Derivatives Exchange (ICDX)
ICDX.jpg
Founded 2009
Headquarters Jakarta, Indonesia
Key People Lamon Rutten, CEO
Products Crude palm oil futures
Website http://www.icdexchange.com

The Indonesia Commodity and Derivatives Exchange (ICDX) is an exchange that launched on March 31, 2010. It began operations with a single palm oil futures contract, and has since added futures on gold, FX, tin and crude oil.

The ICDX not only competes directly with Indonesia's existing commodities exchange, the Jakarta Futures Exchange, but also attempts to win business from the South East Asian region's other main venues that list palm oil contracts, most notably Bursa Malaysia.

ICDX ranked 52nd in global derivative exchange volume in 2018 with 171,672 contracts traded, a 26 percent decrease from the previous year, according to the FIA Annual Volume Report.[1][2]

Background

The launch of the Indonesia Commodity Derivatives Exchange (ICDX) was first announced in mid-2009 with a projected starting date of October of 2009, although that date was later pushed back to April of 2010.[3] The IDX listed only a single contract just prior to the launch of its trading - a crude palm oil (CPO) futures contract, although others such as gold, cocoa and coffee are planned. The ICDX's new CPO contracts is part of a national push to attract palm oil trading away from neighborhood rivals the Bursa Malaysia Derivatives and China's Dalian Commodity Exchange to the ICDX and its larger, more established Indonesian rival, the Jakarta Futures Exchange.[4]

Key Products

The ICDX Crude Palm Oil (CPO) futures contract (symbol: CPOTR) trades 8 a.m. to 5:30 p.m. Jakarta time (GMT+7) Monday to Friday with a tick size of 50,000 Indonesian rupiah per lot and sells for physical delivery.[5]

ICDX also trades gold, tin, and foreign currency contracts.

Key People

Latest News

On February 1, 2012, ICDX began trading a physical tin contract in an attempt to create an alternative to the London Metals Exchange's tin benchmark. The contract had been twice delayed; it was originally intended to be introduced on December 15, 2011, and then again on January 12, 2012, but was delayed in order to 'allow potential users more time to prepare'. As of 2012, Indonesia exports make up roughly 40 percent of total global tin exports.[6] The ICDX tin contract covers 5 tons of metal with a purity of 99.9 percent.

Officials at South East Asia's largest commodities exchange for trading crude palm oil futures contracts, Bursa Malaysia, expect that the ICDX listing of new CPO contracts in April 2010 provides an opportunity for their contracts to further increase volume.[7] Bursa Malaysia CEO Yusli Mohamed Yusoff has said publicly that he expects "healthy competition" between his exchange and the ICDX in palm-oil contract trading will help boost the profile of palm oil futures internationally.

In February 2014, two Deutsche Boerse-backed companies, Global Markets Exchange Group International LLP and European Commodity Clearing, signed agreements with ICDX to develop trading platforms, market surveillance and clearing.[8]

Contract Volume

Year Total Annual Volume Percent Change
2018 171,672 (-)26.5%
2017 234,030 (-)58.1%
2016 558,409 (-)3.0%
2015 575,896 (-)16.7%
2014 691,238 (-)26.0%
2013 934,685 --

Resources

References

  1. 2017 Annual Volume Survey. FIA.
  2. 2018 Annual Volume Survey. Futures Industry.org.
  3. Indonesia to launch Commodities Exchange. Commodities Now.
  4. Bursa, China hail competition from Jakarta. Daily Express (Malaysia).
  5. ICDX Crude Palm Oil Futures Contract Specifications. ICDX.
  6. Indonesian Bourse Starts Trading Physical Tin Contract in Challenge to LME. Bloomberg.
  7. Palm Oil Players Prefer Malaysia For Trading. Bernama.
  8. Deutsche Boerse extends Asia reach with Indonesia agreement. Reuters.