JAKARTA – The Indonesia Stock Exchange (IDX) plans to enable investors to gain exposure to major foreign companies through single-stock futures, local media reported on Monday.
Under the plan, shares of the companies listed on the Hong Kong Stock Exchange could serve as underlying assets for futures contracts without requiring the companies to be directly listed in Indonesia.
IDX President Director Jeffrey Hendrik told reporters in Jakarta that cooperation between the Indonesian and Hong Kong stock exchanges could also provide a simplified pathway for Indonesian-listed companies seeking secondary listings in Hong Kong.
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A single-stock future is a derivative contract that allows investors to buy or sell shares at a predetermined price on a future date. It can be used for portfolio hedging, leveraged trading and investment in both rising and falling markets.
