ANNUAL REPORT JUNE 2010
FEDERATION OF EURO-ASIAN STOCK EXCHANGES
SECURITIES DEPOSITORY CENTER (SDC) OF JORDAN
Samir Jaradat
Chief Executive Officer
As part of Jordan’s vision towards establishing
a progressive economy and a dynamic
investment environment, the Securities
Depository Center (SDC) was established as a
public utility institution and began operating in
1999. Ever since the SDC became the sole
entity empowered the responsibilities of
registering, depositing, transferring ownership,
safekeeping, and clearing and settlement of
securities.
Role of the Depository
The Securities Depository Center of Jordan is a
public utility institution established in the
Hashemite Kingdom of Jordan by virtue of the
Securities Law. The SDC commenced operation
in May 1999 and is the only entity in Jordan that
is legally empowered to oversee the registration
of securities, deposit of securities, transfer of
ownership, safekeeping of securities and
clearing and settlement of securities
transactions.
The SDC is one of the most important
institutions in Jordan’s capital market as it holds
the ownership register of all public shareholding
companies where ownership registration is in
the beneficial owner name where nominee &
street names does not apply.
As a key component in the modernization of the
capital market, the SDC implemented a delivery-
versus-payment (DVP) settlement protocol. DVP,
a globally recommended settlement
methodology that ensures the simultaneous
delivery of securities against final payment of
funds. The ownership is transferred on T+2 and
backdated to T, these transfers are final and
irrevocable, and financial settlements are
currently conducted via the Central Bank of
Jordan’s Real Time Gross Settlement System
(RTGS-JO) which is a central real time, gross
final & irrevocable electronic settlement system,
using SWIFT instructions to effect transfers with
immediate value.
It is worth mentioning that the Tight coupling
environment set in March 2009 in the Jordanian
Capital Market, introducing linkage between the
SDC & the ASE that in turn, organize trading
and reduce risks related to trade's transactions
that in turn positively reflects on clearing and
settlement process at the SDC and reduce risks
in the Jordan Capital Market.
* Please refer to page 48 for the Jordan country report.
AFFILIATE MEMBER
The Securities Depository Center has made
a qualitative leap in the Jordan Capital
Market by establishing a national center for
registry, depository and clearing and
settlement of securities.
Accordingly, the SDC built Securities Central
Operation Registry Processing and Information
Online (SCORPIO)® system in order to
provide various services to investors, its
members including public shareholding
companies, public issuers, brokers and
custodians such services include investor
identification and account set up, statement of
ownership balance, statements of account,
pledging, freezing, online account viewing
The SDC also developed the “Securities Central
Operation Registry Processing & Information
Online (SCORPIO)” system. SCORPIO, an SDC-
designed and implemented system, is bilingual
and it provides a complete solution for the
registration, deposit and clearing and
settlement.
The SDC offers different services to investors in
securities including pledging services, providing
investors with statements of their securities
balances that show the securities owned by
them and their distributions among members; in
addition to providing investors with the ability to
freeze their securities in the central registry.
There are no restrictions on the remittance of
investment funds into or out of Jordan, all
income & capital gained from investment in
Jordan are exempted from tax; this includes
cash & stock dividends. However, (5%) applies
to interest gained from credit balances.
Participation Criteria
The SDC's members are public shareholding
companies, public issuers, brokers, custodians
and any other entity determine by the Board of
Commission of JSC.
The SDC plays a vital role in supporting
transparency through an initiative known as
“Data For All, Not Just For Sale”, from this
initiative the SDC provides various services
through its website such as the online account
viewing, statistical data, members’ area and
an electronic initial public offering (e-IPO).
Does the SDC act as a central
counter party
No
Memberships in other International
Organizations
The International Organization of Securities
Commissions (IOSCO)
Association of National Numbering Agencies
(ANNA)
Africa & Middle East Depositories Association
(AMEDA)
Federation of Euro-Stock Exchanges (FEAS)
Union of Arab Stock Exchanges (UASE)
Central Securities Depositories (CSD10)
Association of Global Custodian (AGC)
Thomas Murray (TM)
Legal Status
Public utility institution
Type of Commercial Entity
Not for profit
Regulated by
Jordan Securities Commission
Form of Securities
Eligible Pledgee Dematerialized no physical certificates being
issued in Jordan
Pledgees are not considered members in that
capacity yet. however, it is within the SDC's
Plans as soon as the legal framework for it is
approved. Form of Settlement
Issuers
Membership is obligatory for public
shareholding companies by virtue of the
Securities Law.
Size of Guarantee Fund
JOD 25.8 million (US$ 36.4 million) as of 31
December, 2009.
Book Entry
Settlement Cycle
T+2
Turnaround Trades
Allowed provided the same broker in the same
settlement cycle
Numbering
• ISIN CODES complying with the International
Standard ISO-6166
• CFI Code complying with the International
Standard ISO-10962
CONTACT INFORMATION
Contact Name Mr. Samir Jaradat E-mail [email protected] Website www.sdc.com.jo
Address The Securities Depository Center (SDC) 2nd Floor - Capital Market Building, Al-Mansour Bin Abi Amer Street
Al-Abdali Area, Al-Madina Al-Riyadiya District, Amman, The Hashemite Kingdom of Jordan
P.O.B. (212465) Amman 11121 Jordan
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