ID :
43455
Fri, 01/30/2009 - 22:59
Auther :
Shortlink :
https://www.oananews.org//node/43455
The shortlink copeid
BI TO SET CRITERIA FOR BUYERS OF DERIVATIVE PRODUCTS
Jakarta, Jan 30 (ANTARA) - Bank Indonesia will set the criteria to determine buyers of derivative products sold by banks, the bank's deputy governor, Muliaman D Hadad, said here on Friday.
"Derivative and structured products are only for sophisticated customers namely customers who understand the products. We will issue a reference for its implementation later," he said.
He said to strengthen supervision on the products' trading BI has changed some of its regulation.
He said unlike before when banks only needed to report their products after they were effectively traded for seven effective days banks now had to get an approval first before they could effectively sell the products.
He said banks were now also required to periodically report offshore products and structured products that they sold.
He said BI itself had already banned trading of derivative products that were speculative in nature upon consideration that it would disrupt rupiah exchange rate.
BI's deputy governor Budi Mulia meanwhile said speculative hedging derivative transactions reached US$3.5 to US$4.0 billion.
Although the transactions were still below non-speculative total hedging derivative transactions that reached US$60 to US$70 billion. However this needs to be closely monitored because it could cause strain on the rupiah.
"Derivative and structured products are only for sophisticated customers namely customers who understand the products. We will issue a reference for its implementation later," he said.
He said to strengthen supervision on the products' trading BI has changed some of its regulation.
He said unlike before when banks only needed to report their products after they were effectively traded for seven effective days banks now had to get an approval first before they could effectively sell the products.
He said banks were now also required to periodically report offshore products and structured products that they sold.
He said BI itself had already banned trading of derivative products that were speculative in nature upon consideration that it would disrupt rupiah exchange rate.
BI's deputy governor Budi Mulia meanwhile said speculative hedging derivative transactions reached US$3.5 to US$4.0 billion.
Although the transactions were still below non-speculative total hedging derivative transactions that reached US$60 to US$70 billion. However this needs to be closely monitored because it could cause strain on the rupiah.
