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FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT APRIL 2011
SECURITIES DEPOSITORY CENTER (SDC) OF JORDAN
AFFILIATE MEMBER
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.
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.
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 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. Durning 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.
* Please refer to page 30 for the Jordan country report.
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.
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.
Does the SDC act as a central counter party
No
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
CONTACT INFORMATION
Contact Name Mr. Samir Jaradat E-mail ceo@sdc.com.jo 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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