FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2012
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”.
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. 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, 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 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). In addition to the information that is provided in a timely,
accurate and updated manner such as board
members’ names, holdings and trades, major
shareholders, financial figures and statistical data.
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 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. Does the SDC act as a central counter party
No
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. During
the year 2010, the SDC continued to improve and
enhance the electronic linkage with the institutions of
capital market in the Kingdom.
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 is in the final stages of completing many
projects, including: new client identification system,
enhancing risk management measure in the settlement
cycle and improving electronic lien system.
The most prominent achievement of 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.
Issuers
Membership is obligatory for public shareholding
companies by virtue of the Securities Law.
Size of Guarantee Fund
JOD 21.2 million (US$ 29.9 million) as of 31 December,
2010.
Recently, the SDC has provided new electronic
services on its website that enable the investor
to view corporate actions and all aspects related
to it, in addition to, dynamic charts that provides
analysis of trading.
Memberships in other International Organizations
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 (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
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
* Please refer to page 24 for the Jordan country report.
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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