Bursa Efek Indonesia (BEI) has recently introduced new features to its trading system known as Indicative Equilibrium Price (IEP) and Indicative Equilibrium Volume (IEV) on December 6, 2021. These features are aimed at improving transparency in the formation of stock opening and closing prices.
Irvan Susandy, the Director of Trading and Regulation at BEI, stated that the implementation of IEP and IEV is a crucial step towards creating a more transparent trading environment for investors.
Previously, the pre-opening and pre-closing sessions relied on a call auction mechanism without providing IEP and IEV information to investors.
“With the introduction of IEP and IEV, investors can now access information on indicative prices and volumes that will be matched at the end of the session,” explained Irvan.
Furthermore, Irvan highlighted 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, allowing investors to participate effectively in stock trading using real-time information.
“For instance, if an investor wishes to buy a stock at the existing IEP value, they can place a buy order at that price while considering the available volume at IEV. Alternatively, if they seek greater matching potential, they can opt for a market order or place a buy order slightly above the IEP value, while monitoring the IEP movement as it is updated in real-time with every order book change,” he elaborated.
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 IDX Mobile application, which can be downloaded for free.
“By leveraging 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.