Nasdaq and Indonesia Stock Exchange expand partnership
Nasdaq and Indonesia Stock Exchange expand partnership
In a significant move aimed at enhancing market infrastructure and technological capabilities, the Nasdaq and the Indonesia Stock Exchange (IDX) have announced an expansion of their technology partnership. This collaboration is set to bolster IDX's trading, surveillance, and post-trade systems, aligning with global best practices and increasing the efficiency and security of the Indonesian capital market.
The expanded partnership between Nasdaq and IDX focuses on upgrading the technology that underpins IDX’s market operations. This includes enhancements to trading systems, market surveillance, and post-trade processes. The collaboration will leverage Nasdaq’s advanced technology solutions to improve the robustness and scalability of IDX’s infrastructure, ensuring it can handle increased trading volumes and more complex transactions, GlobeNewswire reported.
One of the primary goals of this partnership is to enhance IDX’s market surveillance capabilities. By integrating Nasdaq’s SMARTS Surveillance technology, IDX aims to better detect and prevent market abuse and manipulation. This system uses advanced algorithms and data analytics to monitor trading activity in real-time, providing a significant boost to market integrity and investor protection.
For IDX, adopting Nasdaq’s state-of-the-art technology represents a critical step towards modernizing its market infrastructure and aligning with international standards. This move is expected to attract more foreign investment by providing a more secure, transparent, and efficient trading environment. It also reflects IDX’s commitment to leveraging technology to drive market growth and development.
For Nasdaq, this partnership expands its footprint in the rapidly growing Southeast Asian market. By working closely with IDX, Nasdaq can showcase its technological prowess and establish itself as a key player in the region’s financial market infrastructure. This collaboration is part of Nasdaq’s broader strategy to provide technology solutions to exchanges worldwide, helping them enhance their operational capabilities and competitiveness.
“Nasdaq is playing a critical role at the heart of Indonesia’s modernization story. We welcome the opportunity to support Indonesia Stock Exchange’s vision and ambition to become a world-class exchange. By supporting the development of a deep and sophisticated capital markets ecosystem in Indonesia, we can help deliver growth and prosperity across the country and wider region”, Magnus Haglind, Head of Marketplace Technology at Nasdaq said.
The partnership between Nasdaq and IDX is poised to have far-reaching implications for the Indonesian capital market. The technological upgrades are expected to increase trading volumes and liquidity, making IDX a more attractive destination for both local and international investors. Enhanced market surveillance will also boost investor confidence, further driving market participation and growth.
The successful implementation of Nasdaq’s technology could serve as a model for other exchanges in the region. As more markets seek to modernize their infrastructure, Nasdaq’s solutions could become increasingly in demand, solidifying its position as a leading provider of market technology. This trend towards technological integration and modernization is likely to continue, reshaping the landscape of global capital markets.
