Indonesia Commodity and Derivatives Exchange Market Insights

The Indonesia Commodity and Derivatives Exchange (ICDX) is a vital part of the country's economy, providing a platform for trading commodities and derivatives. The exchange was established in 1999 to facilitate the trading of commodities such as coffee, sugar, and rubber.

ICDX has a trading volume of over 1 million contracts per month, making it one of the largest commodity exchanges in the region. This is a significant milestone for the exchange, demonstrating its growing importance in the global market.

The exchange offers a range of products, including futures and options contracts, to cater to the diverse needs of its members. This diversity of products has contributed to the exchange's success, attracting a wide range of participants from across the globe.

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The Indonesia Commodity and Derivatives Exchange (ICDX) operates a robust system for exchange operations. The exchange is open for trading from Monday to Friday, with trading hours from 9:00 am to 3:30 pm WIB.

ICDX has implemented a range of rules and regulations to ensure a fair and orderly market. This includes a set of rules for trading, clearing, and settlement.

The exchange also has a robust risk management system in place to prevent potential losses. This includes a margin system that requires traders to deposit a minimum amount of funds to cover potential losses.

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The trading system used by ICDX is patsystems, an integrated platform that provides a direct link from the exchange to the clearing house. This system is user-friendly and fully online.

ICDX's trading platform is designed for ease of use, making it accessible to a wide range of traders.

Exchange fees are an essential part of exchange operations. These fees are charged for every transaction and clearing process.

The fees vary depending on the type of contract being traded. For example, trading a GOLD (GOLDGR) contract incurs a transaction and clearing fee of 2,500 Rupiah per contract per side.

For Crude Palm Oil (CPOTR) contracts, the transaction and clearing fee is significantly higher at 6,000 Rupiah per contract per side.

It's worth noting that these fees apply to every transaction and clearing process, so it's essential to factor them into your trading strategy.

Here's a breakdown of the exchange fees for the mentioned contracts:

The Indonesia Commodity and Derivatives Exchange offers a range of futures contracts that cater to different commodities and investors.

The exchange has a robust infrastructure to support trading, with contracts available for Crude Palm Oil, Gold, and other commodities.

Crude Palm Oil futures contracts, for instance, have a contract size of 10 metric tons and are traded in Indonesia Rupiah. The contract size is standardized at 10 metric tons, and the price quote is based on free-on-board (FOB) prices of Crude Palm Oil at Dumai and Belawan.

The exchange also has a position limit of 8,000 lots for all contract months combined, with a daily price limit of +/- 10% from the previous day's settlement price.

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Here is a summary of the trading hours and days for Crude Palm Oil and Gold futures contracts:

The exchange's trading hours and days are consistent across both Crude Palm Oil and Gold futures contracts, ensuring a seamless trading experience for investors.

Futures Contracts are a type of financial instrument that allows you to buy or sell an asset at a predetermined price on a specific date in the future. They're commonly used in commodities like Crude Palm Oil and Gold.

The contract size for Crude Palm Oil is 10 Metric Tons (1 Lot), while for Gold it's 100 grams (1 Lot). These sizes can make a big difference in your trading decisions.

Trading hours for both Crude Palm Oil and Gold futures contracts are Monday to Friday, from 9:30 AM to 5:00 PM Jakarta Time. This is a standard schedule, but it's essential to check the exchange's website for any changes.

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Position limits for Crude Palm Oil are 8,000 lots for all contract months combined and 5,000 lots for any individual contract month. For Gold, the position limits are 2,000 lots for all contract months combined, 1,500 lots for any individual contract month, and 500 lots net long or net short for the spot month.

Here's a comparison of the daily price limits for both contracts:

These limits can help you understand the potential risks and rewards of trading futures contracts.

ICDX offers a wide range of crude products, including the three major categories of crude oils: Metals, Soft Agricultural Products, and Energy.

These crude products are a vital part of the futures contracts offered by ICDX. The list of available products is growing, with more additions planned for the future.

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The Indonesia Commodity and Derivatives Exchange (ICDX) is a significant player in the country's financial market.

ICDX was established in 2000, making it over 20 years old.

It is a subsidiary of the Indonesia Stock Exchange (IDX), which is one of the largest stock exchanges in Southeast Asia.

ICDX offers a range of commodity and derivatives products, including gold, silver, and crude oil.

These products are traded electronically, providing a transparent and efficient platform for investors.

ICDX has a trading system that allows for real-time price quotes and order execution.

This system is designed to minimize latency and ensure fair market practices.

ICDX has a membership structure that includes clearing members, trading members, and market makers.

Clearing members are responsible for settling trades, while trading members are allowed to trade on the platform.

Market makers provide liquidity to the market by quoting both buy and sell prices.

ICDX has a comprehensive set of rules and regulations to ensure market integrity and prevent manipulation.

These rules are designed to protect investors and maintain fair market practices.

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ISI Clear has established a Settlement Guarantee Fund (SGF) to protect transactions from default.

The SGF is underpinned by a system that includes variation margin by marking-to-market procedures, initial margin, and security deposit.

ISI Clear acts as the middleman for all transactions, reducing counterparty risk by becoming the buyer to the seller or the seller to the buyer.

A pre-trade margin requirement is in place to further reduce the risk of default.

ISI Clear's role as a middleman also helps to mitigate risk by ensuring that transactions are completed smoothly.

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The Indonesia Commodity and Derivatives Exchange has seen significant changes in contract volume over the years.

In 2021, the total annual volume reached 643,891, marking a 44% increase from the previous year.

The exchange experienced a massive surge in contract volume in 2020, with a total of 447,143, representing a 255.4% increase from 2019.

A notable decline occurred in 2019, with a total annual volume of 113,637, a decrease of 33.81% from the previous year.

Here's a breakdown of the contract volume changes over the years:

The management team at Indonesia Commodity and Derivatives Exchange (ICDX) is led by Fenny Widjaja as Chairman. Fenny is supported by a team of experienced directors, including Megain Widjaja, who serves as Chief Executive Director.

Megain Widjaja is also a Director at ICDX, alongside Arwadi J. Setiabudi. Laren Tan is the Chief Operating Director, overseeing the exchange's daily operations.

Here is a list of key members of the ICDX management team:

The management team at ICDX is made up of experienced professionals who oversee the company's operations. Fenny Widjaja serves as the Chairman of the company.

Fenny Widjaja is supported by Megain Widjaja, who holds the position of Chief Executive Director. Megain Widjaja also serves as a Director at ICDX.

The Chief Operating Director, Laren Tan, plays a crucial role in the day-to-day operations of the company. Arwadi J. Setiabudi is another key member of the management team, serving as a Director.

Here is a list of the key management members:

In April 2010, ICDX listed new CPO contracts, which provided an opportunity for Bursa Malaysia to further increase volume.

Bursa Malaysia CEO Yusli Mohamed Yusoff expects healthy competition between his exchange and ICDX to boost the profile of palm oil futures internationally.

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