FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2013
SECURITIES DEPOSITORY CENTER (SDC) OF JORDAN
The SDC plays a vital role in supporting
transparency through an initiative known
as “Data For All, Not Just For Sale”.
Khalil Naser
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. Accordingly, the SDC built Securities
Central Operation Registry Processing and
Information Online (SCORPIO)® system in
order to provide various services to investors,
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.. The ownership is transferred on T+2 and
backdated to T+0, 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 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.
During the latest years, the SDC continued to
improve and enhance the electronic linkage with
the institutions of capital market in the Kingdom.
The SDC offers different services to investors in
securities including pledging services, providing
its members including public shareholding
companies, brokers and custodians. 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, members’
area and electronic service that enable the
investor to view corporate actions and all
aspects related to it, in addition to, dynamic
charts that provides analysis of trading.
In addition to the information that is provided in
a timely, accurate and updated manner such as
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.
The SDC is implementing the business continuity
& disaster recovery plans according to the
requirements of the international standards and its
positive effects on the SDC’s performance such
as security, continuity of business operations,
maintaining market readiness, reducing the cost of
risk management and serving 24/7 of all members
with high speed link.
Participation Criteria
The SDC’s members are public shareholding
companies, brokers, custodians and any other
entity determine by the Board of Commission of
JSC.
Eligible Pledgee
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.
board members’ names, holdings and trades,
major shareholders, financial figures and
statistical data.
Another electronic service that the SDC
has introduced through its new website is
web services for extracting statistical data,
this service enables users to obtain data
automatically with high efficiency through
the mechanism of direct connection with the
SDC by using (Web Services) technology
that enables the users to store and analyze
statistical data.
Memberships in other International
Organizations
• Association of National Numbering Agencies
(ANNA)
• Africa & Middle East Depositories Association
(AMEDA)
• Federation of Euro-Stock Exchanges (FEAS)
• Central Securities Depositories (CSD)
• 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
Dematerialized no physical certificates being
issued in Jordan
Form of Settlement
Book Entry
Settlement Cycle
T+2
Issuers
Membership is obligatory for public shareholding
companies by virtue of the Securities Law. Turnaround Trades
Allowed provided the same broker in the same
settlement cycle
Size of Guarantee Fund
JOD 10,104,000 (US$ 14,281,279.24) as of 31
December, 2013. Numbering
• ISIN Code complying with the International
Standard ISO-6166
• CFI Code complying with the International
Standard ISO-10962
Does the SDC act as a central counter party
No
* Please refer to page xxx for the Jordan country report.
CONTACT INFORMATION
Contact Name Mr. Khalil Naser 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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