1 copyright © securities depository center, jordan. all rights reserved. presentation dead sea,...
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1Copyright © Securities Depository Center, Jordan. All Rights Reserved.
PresentationDead Sea , October 25th 2007
Samir JaradatCEO
Overview
2Copyright © Securities Depository Center, Jordan. All Rights Reserved.
Foundation
Fundamentally Sound Building Blocks
Quality Materials
Constructed According to Standard Code
Materials Legislative Blocks: Strong & Dynamic Rule of Law
Regulatory Blocks: Securities Regulator
Technical Blocks: Robust & Globally Compliant Technology Systems
Operational Blocks: Exchange, Registry & Depository
Construction Blocks
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Public utility institution
Established in the Kingdom by virtue of the Securities Law
A legal entity with financial & administrative autonomy
Subject to the Jordan Securities Commission’s monitoring & supervision
Commenced operation in May 1999
Establishment
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Goals & Objectives
Enhance the confidence of investors in securities & enable them to follow-up their investments in securities with ease by establishing a central registry to safe-keep the ownership of securities
Reduce risks related to settlement of trading transactions executed through the Market by implementing by-laws, instructions & procedures that are fair, fast & safe
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Functions & Responsibilities
Unique identification number for investors
Central registry system
Central depository system
Safekeeping via Book-Entry
Registered ownership
Centralization of ownership restrictions
Authenticated corporate actions
Clearing & settlement
Account level structure
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Risk Management
Markets have procedures, rules & regulations to protect market-participants from loss to assure the smooth functioning of the market & to maintain the confidence of investors
Settlement Guarantee Fund Separate legal entity with financial autonomy Fund membership is compulsory for brokers & dealers
Settlement cap for market participants commensurate with posted collaterals
Settlement bank
Buy-in & sell-out measures
Immediate suspension of trading for defaulting brokers
Strict licensing protocol for market participants (Zero Tolerance)
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Risk Management
Unbiased corporate governanceTransparent, automated information disseminationEstablished business continuity & contingency plansRobust risk controls in the SDC operationsMovements are final & irrevocable (zero failed trades)Compliance to G30 recommendations & best practices State of the art Electronic Systems SCORPIO®
Clearing & Settlement System Registry System
Securities & Funds Shareholder Ownership Registry
Delivery versus Payment Authentication of Ownership
Final & Irrevocable Settlement Non-Trade Transfers (OTC)
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Investment Made Secure
● Regulation
Sound regulatory framework & binding enforcement, with continued progress
● Accessibility Jordan Capital Market is open to all international investors
Repatriation of capital No restrictions on repatriation of funds into or out of Jordan
Taxation No capital gains tax, this includes cash & stock dividends
Currency The unit of currency in Jordan is the Jordanian Dinar (JOD), & the JOD
exchange rate is pegged to US Dollar
● Registration No physical certificates Dematerialized shares Settlement is effected on the basis of Delivery versus Payment Ownership is updated on T+2 & backdated to T
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● Ownership Registered under the name of beneficial owner name Nominee & street names does not apply
Execution Local brokers execute in the name of Beneficial owner International broker
Accounts Depository Account Custody Account Trading Accounts Segregated Securities Accounts
● Settlement Cycle T+2 rolling settlement with multilateral netting
● Settlement Method Book-entry at the SDC
Investment Made Secure
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● Cash & Clearing system Payments are processed through the "Real Time Gross Settlement System-Jordan"
(RTGS-JO), using SWIFT instructions to effect transfers with immediate value Blocking
Securities are blocked in the buyer’s & seller’s accounts on T+0 pending successful cash settlement on T+2
Turnaround Trades Allowed, provided the same broker is used in the same settlement cycle
Numbering ISIN CODE CFI CODE
Overdraft Restrictions Overdraft facility in Jordan can be offered to foreign investors for a period not
exceeding 15 days for settlement purposes
Corporate actions Voluntary (Right Issue, Tender Offer) Non-voluntary (Dividends, Bonus, Stock split, … etc)
Investment Made Secure
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Cooperation with Regional & International Organizations
●International Organization of Securities Commissions (IOSCO)
●World Federation of Euro-Asian Stock Exchanges (FEAS)
●Association of National Numbering Agencies (ANNA)
●Union of Arab Stock Exchanges
●Africa & Middle East Depositories Association (AMEDA)
●9th Conference of Central Securities Depositories (CSD9)
●Association of Global Custodian
●Thomas Murray
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Vision
● Build World-Class Depository in the Middle East
● Book-entry Clearing & Settlement
● Implement True Delivery-versus-Payment (DvP)
● Adhere to best International Standards & Practices
● Contribute to Better & Enhanced Surveillance
● Introduce Risk Management Measures
● Promote Domestic & Foreign Indirect Investment in Jordan
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Introduction to Securities Lending
e-Payment System
Advanced Accounting System
Order Verification (Tight Coupling)
SCORPIO® Web-Enabled
Revise By-Laws
In Progress Planned
Future Plans
Electronic Initial Public Offering e-IPO
Members’ Area Some Required Enhancements
Disaster Recovery Site Business Continuity PlanMembership StructureSCORPIO® System
Advanced Settlement SystemDevelop value added servicesBonds Processing
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Vote of Confidence
JORDAN
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Thank You
www.sdc.com.jo