The Indonesia Stock Exchange (IDX) has recently rolled out new features on its trading platform called Indicative Equilibrium Price (IEP) and Indicative Equilibrium Volume (IEV) on December 6, 2021. These features are designed to improve transparency in the determination of stock opening and closing prices.
Irvan Susandy, the Director of Trading and Regulation at IDX, emphasized the importance of implementing IEP and IEV in creating a more transparent trading environment for investors.
Previously, the pre-opening and pre-closing sessions operated using a call auction mechanism without providing IEP and IEV information to investors.
“With the introduction of IEP and IEV, investors now have access to information on indicative prices and volumes that will be matched at the end of the session,” stated Irvan.
Furthermore, Irvan underscored the significance of IEP and IEV in stock trading on the Special Monitoring Board. In the periodic call auction mechanism, only IEP and IEV are displayed as indicative information on prices and trading volumes, enabling investors to actively participate in stock trading using real-time information.
“For example, if an investor intends to buy a stock at the current IEP value, they can place a buy order at that price while considering the available volume at IEV. Alternatively, for greater matching potential, they can utilize a market order or place a buy order slightly above the IEP value, while monitoring the real-time updates of IEP with every change in the order book,” he explained.
Investors can access IEP and IEV information through online trading or mobile trading applications provided by Exchange Members during pre-opening, pre-closing, and periodic call auction sessions for stocks on the Special Monitoring Board.
Additionally, this information is available through the free IDX Mobile application. “By utilizing IEP and IEV information, investors can gain insights into indicative price formation and the volume to be matched at the IEP price by the end of the session,” he concluded.
