FEDERATION OF EURO-ASIAN STOCK EXCHANGES > YEARBOOK 2002/2003 > PAGE 16
AMMAN STOCK EXCHANGE
LETTER FROM THE EXECUTIVE MANAGER
The trading volume witnessed a
remarkable increase for the second
consecutive year and market capitalization
exceeded US$ 7 billion.
The Amman Stock Exchange (ASE) offers
Jordanian and international investors access
to a vibrant, active, modern and well-regulated
market.
The year 2002 has been a good year for the
ASE. The trading volume witnessed a
remarkable increase for the second
consecutive year and market capitalization
exceeded US$ 7 billion. In July, the ASE price
index broke all records since the Amman
Financial Market was established in 1978 to
reach 193.5 and the ASE registered the
highest ever daily traded volume of US$ 162
million.
In May, the ASE officially unveiled the
Investor’s Gallery, the first in the region, which
is equipped with state-of-the-art technology
displaying real-time market information.
Investors can monitor market movements and
place trades with their brokers directly from
the Gallery.
In November, the ASE listed 250 million shares
of Jordan Telecom, the first government entity
to be privatized through an IPO and the first
listed at the ASE. This move will increase the
number of shares offered to the public for
trading, deepen the market and offer
additional opportunities to investors. Other
major IPOs are expected in electricity,
transportation, postal services and mining.
As part of its marketing policy, the ASE
participated in the First International Finance
& Business Forum & Exhibition held in Dubai;
the exhibition was attended by more than 500
international and Arab dignitaries.
Another noteworthy barometer of the ASE’s
progress was that the ASE website received
more than 50 million hits from more than 100
countries during the year 2002, a five fold
increase when compared with the previous
year.
Jalil Tarif
Executive Manager
In order to enhance its data dissemination
policy, the ASE joined the Financial
Information Services Division (FISD). The FISD
is considered a neutral business forum and an
effective facilitator on a wide spectrum of
issues affecting the global market data
industry, and the ultimate reliable source in
this field.
HISTORY AND DEVELOPMENT
The Amman Stock Exchange (ASE) was
established in March 1999 as a non-profit, private
institution with administrative and financial
autonomy. It is the only entity in Jordan
authorized to function as an exchange for the
trading of securities. The Exchange is governed
by a seven-member board of directors. An
executive manager oversees day-to-day
responsibilities and reports to the board. The
ASE membership is comprised of Jordan’s 33
brokerage firms.
The history of securities trading in Jordan traces
its origins back to the 1930s. In 1976, the Amman
Financial Market was established to create a
regulated trading market. More recently, as part
of Jordan’s move to upgrade its capital market,
a new Securities Law was enacted in 1997
separating the supervisory and legislative roles
from those of exchange operations. As a result,
the Jordan Securities Commission (JSC) was
created at the same time as the ASE and the
Securities Depository Centre (SDC) were
established. The JSC supervises the issuance of
and trading in securities and monitors and
regulates the market. The SDC oversees clearing
and settlement and maintains ownership records.
recognized directives regarding market divisions
and listing criteria. It has also adopted procedures
for improving regulatory effectiveness.
On March 26, 2000 the ASE launched an
automated order-driven Electronic Trading
System. The new system is in compliance with
international standards and takes into account
the G-30 recommendations. This system also
offers brokers immediate access to stock prices
and orders and enables members to trade
remotely.
To provide a transparent and efficient market,
the ASE has implemented internationally
FUTURE OUTLOOK
In the year 2003, the ASE will continue its efforts
to achieve the following:
comprehensive review and subsequent
amendment to the rules and regulations in order
to be in compliance with the new Securities Law,
which is expected to be passed in the near future
and which will move the ASE closer to
international standards in the securities industry;
taking an active role in the privatization process
by encouraging companies targeted for
privatization to bring their IPOs to the exchange; reconstruction of the ASE website with a new
look and theme to give better service to the
overwhelming demand of visitors; and
strengthening cooperation with regional and
international institutions as well as Federations.
Specifically, the ASE is currently in the process
of joining the International Organization for
Securities Commissions (IOSCO); continuation of the development of an effective
policy in data dissemination.