Indonesian Depository Signs Up with Nasdaq

Kustodian Sentral Efek Indonesia (KSEI), the country’s central securities depository (CSD), has teamed up with Nasdaq OMX to use its technology with a 10 year contract.

The X-stream CSD offers KSEI key functionalities such as asset and custody management, trade and instruction capture, corporate action management, settlement and multi-CSD linkages.

“This is a major step for KSEI in increasing the capacity and modernizing our C-BEST CSD platform to boost our productivity… to cater to the anticipated rapid growth of Indonesian investors,” says Heri Sunaryadi, president director, KSEI.

The partnership also shows how CSDs in emerging markets have to modernise and redevelop their technological solutions in order to adapt to newer business models and regulatory change.

“The development of C-BEST Next-G is expected to accommodate the SWIFT message format of ISO 20022, which can be implemented globally. This will facilitate KSEI to conduct Cross Border Settlement with other countries in the future,” Sunaryadi adds.

Indonesia is the latest country in the Southeast Asian region to strike a deal with global trading and technology firms as exchanges are increasingly moving eastwards for new revenue streams.

“KSEI plays a key role as the only CSD in Indonesia. As Nasdaq sees strong demand for post-trade technology, including CSD, across the Asia Pacific region, the KSEI partnership is even more important to us,” says Robert Fröjd, managing director and regional manager, South Asia, Southeast Asia and Pacific, Nasdaq.