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| License from CoFTRA (Bappebti) Member of Jakarta Futures Exchange House & Indonesian Derivatives Clearing House |
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| PACIFIC2000 - Apelles RT Kawengian |
| Jakarta Wisma Standard Chartered Bank 18th fl Jl.Jend. Sudirman Kav 33 A Jakarta 10220 - Indonesia Telp. 62 21 574 6961, Fax. 62 21 574 5864 |
| Surabaya Wisma BII, 10th fl Jl. Pemuda no.60-70 telp. 62 31 531 1388, Fax. 62 31 547 4147 |
| Semarang Ruko Matraman Plaza Blok D 5 Jl. MT Haryono no. 427-429 telp. 62 24 358 7310, Fax. 62 24 358 7311 |
| Denpasar Melati Bali Rukan Jl. Melati no. 45E Jl. MT Haryono no. 427-429 telp. 62 361 259 244, Fax. 62 631 259 247 |
| Medan Komp. Ruko Sinar Mas Jl. Gur Patimpus blok G no. 20 telp. 62 61 455 7532, Fax. 62 61 455 7580 & Jl. Kapten Pattimura no. 423 Telp. 62 61 453 1891, Fax. 62 61 453 1892 |
| Banjarmasin Jl. Panjaitan no. 75 telp. 62 511 363 692, Fax. 62 511 360 342 |
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| FUTURES TRADING |
| History of Futures Trading in the U.S.
Futures contracts for agricultural commodities have been traded in the U.S. for more than 100 years and have been under Federal regulation since the 1920's. In the last 20 years, futures trading has expanded rapidly into many new markets, beyond the domain of traditional physical and agricultural commodities. Futures and options are now offered on many energy commodities such as crude oil, gasoline heating, oil, and natural gas, as well as on a vast array of financial instruments, including foreign currencies, U.S. and foreign government securities, and U.S. and foreign stock indices. In addition, in recent years, new futures contracts have been offered in other non-traditional commodity areas such as electricity, seafood, dairy products and crop yields. What is a Futures Contract? A futures contract is an agreement to buy or sell in the future a specific quantity of a commodity at a specific price. Most futures contracts contemplate that actual delivery of the commodity can take place to fulfill the contract. However, some futures contracts require cash settlement in lieu of delivery, and most contracts are liquidated before the delivery date. An option on a commodity futures contract gives the buyer of the option the right to convert the option into a futures contract. Futures and options must be executed on the floor of a commodity exchange--with very limited exceptions--and through persons and firms who are registered with the CoFTRA. Who Uses Futures and Options Markets? Most of the participants in the futures and option markets are commercial or institutional users of the commodities they trade. These users, most of whom are called "hedgers," want the value of their assets to increase and also want to limit, if possible, any loss in value. Hedgers may use the commodity markets to take a position which will reduce the risk of financial loss in their assets due to a change in price. Other participants are "speculators" who hope to profit from changes in the price of the futures or option contract. Contract Review and Market Surveillance: To ensure the financial and market integrity of the nation's futures markets, the CoFTRA reviews the terms and conditions of proposed futures and option contracts. Before an exchange is permitted to trade a futures and option contract in a specific commodity, it must demonstrate that the contract reflects the normal market flow and commercial trading practices in the actual commodity. The Commission conducts daily market surveillance and can, in an emergency, order an exchange to take specific action or to restore orderliness in any futures contract that is being traded. Regulation of Futures Professionals: Companies and individuals who handle customer funds or give trading advice must apply for registration through the Jakarta Futures Exchange (JFX), a self-regulatory organization approved by the Commission. The CoFTRA also seeks to protect customers by requiring registrants to disclose market risks and past performance information to prospective customers, by requiring that customer funds be kept in accounts separate from those maintained by the firm for its own use, and by requiring customer accounts to be adjusted to reflect the current market value at the close of trading each day. In addition, the CoFTRA monitors registrant supervision systems, internal controls and sales practice compliance programs. Further, all registrants are required to complete ethics training. |