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Presentation Dead Sea , October 25 th 2007 Samir Jaradat CEO PowerPoint PPT Presentation


Overview Presentation Dead Sea , October 25 th 2007 Samir Jaradat CEO Construction Blocks Foundation Fundamentally Sound Building Blocks Quality Materials Constructed According to Standard Code Materials Legislative Blocks: Strong & Dynamic Rule of Law

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Presentation Dead Sea , October 25 th 2007 Samir Jaradat CEO

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Overview

PresentationDead Sea , October 25th 2007

Samir JaradatCEO


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Construction Blocks

  • 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


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Establishment

  • 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


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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 governance

  • Transparent, automated information dissemination

  • Established business continuity & contingency plans

  • Robust risk controls in the SDC operations

  • Movements 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

  • Repatriationof 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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Investment Made Secure

  • 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

  • SettlementCycle

    • T+2 rolling settlement with multilateral netting

  • Settlement Method

    • Book-entry at the SDC


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Investment Made Secure

  • 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)


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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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Future Plans

In Progress

Planned

  • Introduction to Securities Lending

  • e-Payment System

  • Advanced Accounting System

  • Order Verification (Tight Coupling)

  • SCORPIO® Web-Enabled

  • Revise By-Laws

  • Electronic Initial Public Offering e-IPO

  • Members’ Area

  • Some Required Enhancements

    • Disaster Recovery Site

    • Business Continuity Plan

    • Membership Structure

    • SCORPIO®System

  • Advanced Settlement System

  • Develop value added services

  • Bonds Processing


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JORDAN

Vote of Confidence


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Thank You

www.sdc.com.jo


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