Gotrade Indonesia facilitates the trade of derivative contracts under the scheme of Penyaluran Amanat ke Bursa Berjangka Luar Negeri or Channelling of Order to Foreign Future Exchanges (PALN) which are regulated by the Commodity Futures Trading Supervisory Agency or CoFTRA / Bappebti. Derivative contract of PALN stocks are not securities registered and supervised by the Financial Services Authority.
Trading activities of financial instruments may be subject to the supervision of the Financial Services Authority (OJK) or the Commodity Futures Trading Supervisory Agency (CoFTRA/ Bappebti) depending on the instruments. OJK supervises and regulates the capital market sector for trading securities, including stocks, bonds and mutual funds. Meanwhile, Bappebti, which is under the Ministry of Trade, oversees the trading of futures contracts and commodities.
In early 2022, Bappebti has issued Bappebti Regulations No. 1 and No. 2 of 2022, which facilitates the PALN scheme for single stock derivative contracts for foreign shares. The concept of PALN has actually been known in commodity futures trading transactions since Law No. 32 of 1997 was enacted, in Article 13, which has been amended by Law no. 10 of 2011. Therefore, PALN is not a new scheme. In Government Regulation No. 49 of 2014 on the Implementation of Commodity Futures Trading, the PALN scheme is further elaborated and it is stated that Bappebti stipulates a list of foreign futures exchanges and a list of futures or derivative contracts that can be channelled to foreign futures exchanges.
The PALN concept in Bappebti Regulations 1 and 2 of 2022 allows Indonesian customers to trade derivative contract of PALN stocks more securely. Bappebti Regulation 1/2022 facilitates trading of futures contracts with fractional values, so that transactions can be executed in small amounts. Meanwhile Bappebti Regulation 2/2022 opens up opportunities for futures contracts for foreign stocks listed on the NASDAQ or NYSE, such as Google, Tesla, Apple, and various stocks of other well-known companies.
Gotrade Technologies is a system that has partnered with the Jakarta Futures Exchange (JFX) to organize the trading of derivate contract of PALN stocks based on the Cooperation Agreement for the Use of Application-Based Transaction Systems between PT. Jakarta Futures Exchange, PT. Clearing Futures Indonesia (Persero) and Gotrade Technologies Pte., Ltd., dated March 28, 2022.
Gotrade Indonesia has also partnered with futures and commodity contract brokers registered with Bappebti, namely PT Valbury Asia Futures (VAF) with registration number 184/BAPPEBTI/SI/II/2003.