Bilateral trading, also known as Over-The-Counter (OTC) trading, is a system where multiple traders engage in transactions with a single counterparty. This “one-to-many” model operates outside the exchanges.

In Indonesia, these transactions traded under the Alternative Trading System are conducted using customer margins registered with the clearing house and exchange. This practice aligns with the provisions set forth in Law No. 10 of 2011, ensuring regulatory compliance and oversight in the OTC market.

OTC transactions encompass a variety of derivatives contracts, including:  

• Stock index derivatives contracts
• Single stock derivatives contracts
• Foreign currency derivatives contracts
• Commodity derivatives contracts