Jakarta Futures Exchange

Address:
The City Tower Building, 20th Floor
Jl. MH. Thamrin, No. 81
Jakarta Pusat, 10310
Indonesia

Phone: (+62) (21) 3199 6030
Fax: (+62) (21) 3199 6050
Website: www.jfx.co.id

Board of Commissioners:

Ardiansyah Parman, President Commissioner
Hansen Wibowo, Commissioner
Fridericus Wishnubroto, Commissioner

Board of Directors:

Stephanus Paulus Lumintang, President Director
Donny Raymond, Director

JFX History

Jakarta Futures Exchange (JFX) or PT. Bursa Berjangka Jakarta is the first commodity exchange in Indonesia established under the Indonesian law No.32 /1997. PT. Bursa Berjangka Jakarta was established on August 19, 1999 by 4 palm plantations, 7 refineries, 8 coffee exporter, 8 securities companies and 2 general traders. Of the 40 billion capital authorized, capital paid-up was Rp. 11.6 billion. PT Bursa Berjangka Jakarta or better known now as Jakarta Futures Exchange (JFX) met all the requirements stipulated in the Law No.32/1997 and received a business license from the Coftra, Bappebti, in the mid of 2000.

Initially JFX traded contracts on olein and robusta coffee, later expanding its scope to gold as well as crude palm oil in 2001. In the 2002 JFX decided to terminated the trade of CPO and robusta coffee contracts due to scarcity of demand. The new contract which is successfully marked is the cocoa contract. JFX has also developed the JFX Syaria which is the first Islamic-based commodity trading in Indonesia. In December 2013 JFX launched new products which consist of Arabica and Robusta coffee Contracts, Rubber Physical Market, and Periodic Rolling Gold contract.

JFX Operation

The primary function of JFX is to provide the facilities for members to meet and transact in futures contract market. Prices are determined via an electronic method, through the efficient interaction of demand and supply in a trading system. Bids to buy, and offers to sell, are entered in a computer trading system and are continuously matched by the system. This continuous auction system ensures competitive pricing within a fair and safe marketplace.

It is envisaged that at a later stage, entry into the Exchange Trading System can be done remotely from the members' offices.

Market Safeguards

JFX has many safeguards of high standards to protect the integrity of the markets. They are as follows:

i) The Clearing House

In protecting the financial integrity of the marketplace, JFX together with its Clearing House, the PT Kliring Berjangka Indonesia(Persero) ("KBI"), adopts a financial and operational safeguard system that is comparable to the best international practices. This system is designed to provide the highest level of safety with very early detection of unsound practices on the part of any Member. Protection against market defaults is imperative and remains the ultimate goal of the clearing system.

ii) The Audit, & Surveillance (A&S) Division

The ACS division has the overall responsibility of upholding the integrity of JFX futures markets. The division carries out a wide range of duties through its carefully selected and competent audit staff which include daily and regular monitoring of the market and Members, regular visits to Members' offices for field audits and monitoring of the activities on the trading Floor of the Exchange.

iii) Legal and Membership Division

Responsible for detecting any fraudulent trading practices, abuses or any violation of JFX Rules and Regulations. Duties include ensuring all traders on the Floor maintain a high standard of conduct and professionalism, investigate complaints officially received from Members, Individuals, the Clearing House, and other sources.

Other than carrying out responsibilities of detecting violations that may affect the integrity of the market, this unit also adopts a proactive approach in assisting Members comply with the Rules. Members are strongly encouraged to consult this unit on regulatory issues. In addition, the unit regularly initiates amendments to the Rules in steering towards a more efficient marketplace.

iv) Registrations of Brokers

Under the Commodity Futures Trading Act 1997, a member of the Exchange, who handles client futures accounts must be licensed as a Futures Broker with the Commodity Futures Trading Regulatory Agency (CoFTRA). The CoFTRA is an independent national regulatory agency responsible for the regulation and supervision of all futures trading in Indonesia.

A Futures Broker must also ensure that all its employees who handle clients are registered as Futures Broker's Representatives (FBRs) with the Exchange and are licensed by the CoFTRA.

v) Reportable Position and Speculative Position Limits

Members are required to report to the Exchange when their proprietary accounts, or any of their clients', have a position equal to or in excess of the reportable level set by the Exchange for each contract.

These limits are enforced strictly to prevent price manipulation or cornering of the market, hence protecting the integrity of the Exchange.

vi) Segregation of Clients' Funds

Members are required to maintain a separate bank account for all clients' funds. Clients' funds cannot be withdrawn from the segregated account except for the purposes of payment of deposits and margins, payment of debits due to the member from the client, and monies drawn on client authority. Members are also not permitted to use monies belonging to one client for margining or financing the trades and positions of another client or the Member itself

Membership Structure Of Jakarta Futures Exchange

Members of the Jakarta Futures Exchange consist of 4 categories:

Trader Member, is a member registered by the Commodity Futures Trading Regulatory Agency (CoFTRA), which is divided into:

Corporate Trader, which can only trade on its own and/or its related business group account.A Corporate Trader Member must own at least 1 (one) seat.
Individual Trader, who can only trade on his/her own account.
Individual Trader needs to own seat or lease minimum one seat.

Broker Member, is a corporate member issued a license by the Commodity Futures Trading Regulatory Agency (CoFTRA). A Broker Member can accept orders for execution from their clients. In addition they must own at least 1(one) seat.

3. A party in the application process of becoming a Broker or a Trader.

4. Founding Shareholders with no license or not registered as Broker or Trader, as defined under Article 12 (2) Act Number 32 Year 1997.

Members of the Exchange need not be shareholders of the Exchange. The General Meeting of Shareholders have the right to appoint the Board of Commissioners and the Board of Directors. The shareholders are automatically members of the Exchange.

Members do not automatically have access to the Exchange Trading System. To have access to the Exchange Trading Engine, members must buy Seats which Perpetual Bonds are issued by the Exchange with no nominal value nor coupons.Beneficial ownership (through purchase or lease) of a Seat entitles the member access to the Exchange Trading Engine.

JFX Products

Futures contracts traded on JFX are classified into multilateral, bilateral and other contracts namely CPO auction physical market, Sharia Commodity Markets, and PALN (distribution of foreign affairs commission). Futures Contracts included in the multilateral transaction are: Olein Contract, Gold Contract, and Cocoa Contract. The contracts included in the bilateral transaction are: foreign currency contracts, foreign stock index contracts, and loco London gold contract.

The Contract Specifications:

FUTURES CONTRACT

GOLD FUTURES CONTRACT (GOLD)

1.	Contract Size	1000 gr 250 gr 100 gr
2.	Grade	Gold bar with 99.99% fineness, and bearing a serial number and identifying of a refiner approved and listed by the London Bullion Market Association (LBMA)
3.	Denomination	Rupiah (Rp.)
4.	Tick	Rp. 50/gr
5.	Contract Months	3 consecutive months
6.	Trading Hours	Every trading day (08:30 – 17:30)
7.	Last Trading Day	3 Business days prior to the last business day of the delivery month. If not a business day, the previous business day
8.	Delivery Points	Registered delivery points located in Jakarta and Surabaya (Indonesia)

GOLD ROLLING CONTRACT (KGE)

1.	Lot	100 troy ounce (Regular) 10 troy ounce (Mini)
2.	Contract Base	Loco London Physical Gold Price
3.	Denomination	Rupiah (Rp.)
4.	Tick	Rp. 1/gr
5.	Trading Hours	Every trading day (08:30 – 17:30)

DOLLAR DENOMINATED GOLD ROLLING CONTRACT (KGE USD)

1.	Lot	100 troy ounce (Regular) 10 troy ounce (Mini)
2.	Contract Base	Loco London Physical Gold Price
3.	Denomination	USD Dollar Floating
4.	Tick	US 0,05/troy ounce
5.	Trading Hours	Trading days and time equals that of New York trading (including market holiday) JFX may change trading hours from time-to-time

Fixed Rate Dollar Denominated Rolling Gold Contract (KGE USD FIXED RATE)

1.	Lot	100 troy ounce
2.	Contract Base	Loco London Physical Gold Price
3.	Denomination	USD fixed --.at.-- 10.000
4.	Tick	US 0,05/troy ounce
5.	Trading Hours	Trading days and time equals that of New York trading (including market holiday) JFX may change trading hours from time-to-time

Gold Index Rolling Contract (KIE)

1.	Lot	Rp. 10.000/point
2.	Contract Base	An index calculated by dividing Gold Rolling Contract settlement prices in JFX with Loco London physical market
3.	Tick	1 point index
4.	Trading Hours	Every trading day (08:30 – 17:30)

COCOA FUTURES CONTRACTS (CC5)

1.	Contract Size	5 Ton (5000 Kg)
2.	Grade	SNI Grade of Fermented Cocoa (No. 2323-2008) as determined by the National Standardization Board (BSN)
3.	Denomination	Rupiah (Rp.)
4.	Tick	Rp. 10/Kg
5.	Contract Months	March, May, July, September, and December
6.	Trading Hours	Each Trading Day 1^st Session : 08:30 – 12:30 2^nd Session : 16:00 – 02:00
7.	Last Trading Day	11 days prior to the last business day of the delivery month. If not a business day, the previous business day.
8.	Delivery Points	Warehouses approved by the Exchange at the option of the seller located in Makassar, Palu, and Lampung

OLEIN FUTURES CONTRACT (OLE)

1.

Contract Size

20 Ton

10 Ton

2.

Delivery Months

Current and next 5 consecutive months

3.

Price Quotations

Indonesian Rupiah/kg (Including VAT)

4.

Tick

Rp. 5/Kg (including VAT)

5.

Daily Price Limits

Rp 200/kg above or below the previous settlement price

Price limits will apply to all quoted months except for the current month
Change of price limits can be made by the Exchange without prior notice

6.

Reportable Positions

150 lots or more net long or net short positions, in all contract months combined

7.

Speculative Position Limit

500 lots net long or net short in any one contract month or in all contract months combined

8.

Last Trading Day

15^th of the month. If not a business day, the preceding day

9.

Notice Period

5 Business days prior to the last trading day

10.

Notice of Allocation

Before trading of the next business day following allocation

11.

Last Delivery Date

2 business days after allocation

12.

Contract Grade

Grade	Exchange	Market*
Free Fatty Acids	≤ 0.15%	≤ 0.15%
Moisture & Impurities	≤ 0.1%	≤ 0.1%
Iodine Value (WIJS)	≥ 56	≥ 56
Color (Lovibond 5.25 Inch)	≤ 3 Red	≥ 4 Red
Slip Melting Point	≤ 24°C	≤ 24°C
Cloud Point	10°C	10.75°C
*Market Grade will be discouinted of Rp 50/kg (incl. VAT)

13.

Delivery Points

Tanks installations approved by Exchange at the option of the seller located in Jakarta and Surabaya

14.

Trading Hours

Each Business day (09:30-17:30)

CPO ORGANIZED PHYSICAL MARKET

1.	Contract Size	500 Tonnes
2.	Grade	Standard Grade Specification: Free Fatty Acid between 3.5% - 5.0% Moisture & Impurities max 0.5% Super Grade Specification: Free Fatty Acid under 3.5% Moisture & Impurities max 0.5%
3.	Denomination	Rupiah
4.	Tick	Rp. 1/Kg
5.	Trading Hours	Monday to Friday (09:45 – 16:00) 45 Minutes CPO auction as follow : 10:00 – 10:45 11:00 – 11:45 13:00 – 13:45 14:00 – 14:45 15:00 – 15:45
6.	Delivery Points	Free on Board (FOB) loading port or Franco factory of Auction Winner

RUBBER PHYSICAL MARKET

1.	Contract Size	5 Metric Tons (5,000 Kg)
2	Auction Sytem	Auction sell and buy
3.	Auction Time	Each auction session conducted as follows: Session I: Western Indonesia Time 12:30 to 13:00 pm (GMT +7) Session II: Western Indonesia Time 13:30 to 14:00 pm (GMT + 7) Hours that a standard is a clock on the computer server which can be monitored by computer participants
4.	Price Quotation	IDR / kilogram
5.	Tick / Minimum Price Fluctuation	IDR 10 / Kg
6.	Quality	Bokar with DRC (Dry Rubber Content) of at least 50%
7.	Delivery Type	Loco Seller Warehouse or Loco Buyer Warehouse
8.	Delivery Points	Seller storage warehouse or buyers receipt warehouse located in: North Sumatra, South Sumatra, Jambi, Riau, Lampung, West Sumatra, West Kalimantan, South Kalimantan, East Kalimantan, Central Kalimantan

ROBUSTA COFFEE FUTURES CONTRACT

1.	Contract Code	RCF
2.	Contract Size	5 Ton (5,000 Kg)
3.	Contract Months	January, March, May, July, September, November
4.	Trading Hours	Each Trading Day Session 1 09:30 – 11.30 Session 2 14:00 – 23:00
5.	Last Trading Day	Last trading day is last weekdays current month. If the weekdays is not trading day, so current trading day is a last trading day.
6.	Denomination	Rupiah / IDR
7.	Tick	Rp 10,- /Kg
8.	Delivery Points	Warehouse approved by the Exchange at the option of the seller located in Palembang, Bandar Lampung, Jakarta, and Surabaya
9.	Grade	SNI Grade IV-B of Robusta Coffee (No.01-2907-2008) as determined by the National Standardization Board (BSN)

ARABICA COFFEE FUTURES CONTRACT

1.	Contract Code	ACF
2.	Contract Size	2 Ton (2,000 Kg)
3.	Contract Months	March, May, July, September, and December
4.	Trading Hours	Each Trading day Session 1 08:30 – 11.30 Session 2 16:00 – 02:00
5.	Last Trading Day	Eight trading days prior to the last trading day of the delivery month. If not a business day, the previous business day
6.	Denomination	Rupiah / IDR
7.	Tick	Rp 50 / Kg
8.	Quality	SNI Grade 1 of Arabica Coffee (No.01-2907-2008) as determined by the National Standardization Board (BSN)
9.	Delivery Points	Warehouses approved by the Exchange at the option of the seller located in Medan, Makasar, Jakarta, dan Surabaya

GOLD PERIODIC ROLLING CONTRACT

1.	Contract Size	5gr, 10gr, 25gr, 50gr, 100gr
2.	Grade	Gold bar of 99.99% purity with stamp and serial number from ANTAM
3.	Denomination	Rupiah
4.	Tick	Rp 500/gr
5.	Contract Months	One (1) current month
6.	Trading Hours	Each trading day 11:00 – 15:00
7.	Last Trading Day	Last business day of the current month, if not a business day, the previous business day
8.	Delivery Points	Registered delivery points at the option of the buyer