FEAS Yearbook FEAS Yearbook 2017 | Page 49

Yearbook 2017

About Palestine Exchange

Established: 1995

Chairperman: Dr. Farouq Zuaiter

CEO: Mr. Ahmad Aweidah

Address: Trust Co. Build-Amman Street-Nablus

P.O. Box 128, Nablus-Palestine

Contact Name: Mr. Mohammad Khraim

Email: [email protected]

Website: www.pex.ps

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Sanctions for Regulation Violation

The sanctions list of PEX is applied on both the Brokerage firms and the listed companies in case of violation of any of the following Regulations:

• Listing regulations

• Disclosure regulations

• Trading regulations

• Membership regulations

The sanctions' list treats the violation gradually through five levels according to the severity of the sanction, and it varies between warnings, imposing fines (it could be a percentage with a specified Min./Max. limits, or a predefined fixed amount), suspending companies or individuals related to it from implementing certain activities related to PEX, or it could reach the level of canceling licenses for brokerage firms or delisting for listed companies.

Sanctions' list is approved by both the board of directors of PEX and the Palestinian Capital Market Authority since 2006, also it was amended and approved in 2014.

Settlement of Trades

- The cash settlement is processed through the BURAQ at PMA since 01/03/2013, the procedure requires that each Broker (Participant) has to nominate a Settlement Bank and maintain a cash accounts with this bank, he should fund his account at his S. B. before 9.30am on T+2 (Settlement Day), and the S. B. processes cash settlement on behalf of his broker through BURAQ at PMA at no later than 09:30am on T+2, All eight brokers already nominated six S. Bs., who in their turn will settle the obligations of those brokers on T+2 through the PMA in accordance with the settlement file uploaded by the CDS at BURAQ on T+0.

- However in BURAQ, there is an intermediate cash settlement account whose balance should be zero before and after processing the cash settlement, the settlement banks’ cash accounts are to be debited against the intermediate settlement account and credited by this account in accordance with the settlement file uploaded by the CDS.

- On T+2 at 9.30am at the latest, cash settlement occurs between the settlement account and the appointed settlement banks' accounts with the PMA.

- The CDS gets an automatic notification and a detailed report from BURAQ once the settlement is processed on T+2. Taking into consideration that the CDS follows detailed written procedures that manage all settlement related issues between the CDS and PMA, brokers and S. Bs.

- The (CDS) implements a near-simultaneous DVP settlement as the CDS settles securities immediately after receipt of cash settlement confirmation from BURAQ system at 9.30am SD at the latest.

Once cash settlement confirmation is received, a CSD staff clicks a button to trigger the settlement of securities, which automatically update the ownership immediately.