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Patsystems provides ICDX with platform for expansion

Leveraging Patsystems’ scalable, front-to back office exchange technology and unparalleled regional distribution, the Indonesian Commodity & Derivatives Exchange (ICDX) aims to establish itself among the major Asia-Pacific exchanges.

ICDX launched in March 2010 with a mandate to become the price discovery centre for Crude Palm Oil and other commodities. The exchange also owns and operates their clearing house, Identrust Security International (ISI). Both the exchange and the clearinghouse are powered by Patsystems’ complete exchange solution, comprising the trade matching engine, clearing and settlement platform and the front-end order management system, which includes pre-trade risk management.

In its first seven months of operation, ICDX has seen the volumes for its two initial contracts – Crude Palm Oil and Gold futures - rise to 3,000 lots per day. Membership has expanded as well with 46 member firms and more in progress.

“ICDX evaluated several potential vendors,” says Megain Widjaja, CEO of ICDX. “Patsystems came out on top in three crucial areas”:

1) A front-to-back solution. Managing a complex IT project that requires synchronizing multiple vendors and their products can be an ordeal. Patsystems provides a complete front-to-back solution comprised of modules designed to work seamlessly together. One vendor, one platform, less hassle.

2) Scalability. ICDX has ambitious goals to become one of the key exchanges in the region. A raft of new products from the energy, soft agriculture and metal sectors are slated for a roll-out in 2011. Financial futures are to follow next. Membership is also set to increase with the participation of foreign firms. “With Patsystems, we have a platform that will grow with us and keep pace with the increasing demands for low-latency and high-volume throughput,” says Widjaja. “Their scalable technology is critical as we gear up for a period of steady growth.”

3) Distribution. “Patsystems is second to none in terms of connectivity in the region,” says Widjaja. “All the major brokers have Patsystems’ installations, making it easy for them to connect to ICDX and making our products readily available to their clients.”

The Patsystems exchange solution uses an Oracle database and HP hardware, with Linux or Windows operating systems. Designed to work seamlessly out of the box, the entire exchange and clearing architecture was deployed within three months, with only minimal customization required to adapt the system to the local regulatory environment.

“We were very impressed with how quickly we were able to implement this technology,” says Widjaja. “Patsystems delivered on time and on budget, and always provide efficient and effective technical support.”

Barry White, Patsystems Regional Director, Asia Pacific says, “ICDX shows the value of our integrated exchange solution. Efficient installation handled by a single vendor means exchanges can be up and running faster. Our scalable and robust technology, coupled with broad distribution to the trading community, enables the exchanges we partner with to grow.”