Jakarta Futures Exchange

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Jakarta Futures Exchange
JFX.jpg
Founded 1999
Headquarters Jakarta, Indonesia
Key People Board of Directors President Hasan Zein Mahmud
Products Gold and olein (palm oil) futures contracts
Website http://www.bbj-jfx.com/

The Jakarta Futures Exchange (JFX), known locally as the Bursa Berjangka Jakarta (BBJ), is a futures exchange which lists commodities such as gold and crude palm oil contracts.

JFX has struggled to establish a commodity futures market in Indonesia since it inception in 1999. Although currently the only futures market in South East Asia's largest country, it will soon face competition in Indonesia's crucial palm oil and gold trading market from new entrant the Indonesia Commodity & Derivatives Exchange (ICDX). JFX plans shortly to list new contracts on coffee and cocoa futures.

Backgound

The JFX started in August, 1999 following passage of a law in late 1997 mandating the establishment of a futures exchange. The JFX was started by 29 private corporations with paid-up capital of 11.6 billion Indonesian rupiah (US$1.25 million) and commenced operations in December, 2000.[1]

The exchange lost its monopoly derivatives-trading status in July 2009 when the Indonesia Commodity and Derivatives Exchange (ICDX) was granted permission to list futures contracts in the country's two most widely-traded commodities: gold and crude palm oil.[2] One month earlier, JFX had launched a physical spot market ("pasarfisik") trading crude palm oil (CPO) contracts by daily auction and intends to add other commodities such as [coffee]], gold, cocoa coal.[3]

Two months after the ICDX announcement, the JFX and the Indonesian Coal Producers Association announced they would jointly launch a coal exchange to help producers set an export-price benchmark.[4] Indonesia is the world's largest exporter of thermal coal and its government recently announced it would set it own coal-price benchmark index to avoid widespread transfer pricing, Reuters reported.

Products

The JFX trades futures contracts in the following commodities:

  • Olein (palm oil extract)
  • Rolling gold
  • [[Physical] crude palm oil (CPO) - daily auction

Key people

Hasan Zein Mahmud, president of the JFX board of directors

Lukas Lauw, head of trading and IT

Latest news

In March 2010, JFX announced a partnership with trading technology developers Trayport Exchange Systems and 3i Infotech on a new electronic trading system with built-in broker workstations.[5] The new system will deploy Trayport's GlobalVision Exchange Trading System and 3i Infotech's AWACS risk management and surveillance system plus its Tradis broker workstation. The new system will allow trading in coffee and cocoa futures to be added to the present contracts in gold and olein, JFX officials stated.

References

  1. Brief History. Jakarta Futures Exchange.
  2. Indonesia bourse to trade palm oil, gold futures. Jakarta Post.
  3. Launching of physical market. Jakarta Futures Exchange.
  4. Indonesia eyes coal exchange for price benchmark -association. Reuters.
  5. Jakarta Futures Exchange Agrees to Terms with Trayport Exchange Systems and 3i Infotech for its New Exchange Technology. PRNewswire.