Overview of the Jordanian securities market
The Trading System
Stock exchange members
Listed securities
Dealing costsf
Taxes and exchange controls
Foreign investment restrictions
Settlementf
Form of securities
Protection of holders of securitiesf
Banking system
Regulation
Types of firms regulated
Capital adequacy requirements
Custody arrangements
Corporate actions
Transparency of shareholdings
Corporate governance/Protection of minority shareholders
Take-over regulationf
Insider dealing and market abuse
Investment companies and investment funds
General information
LIST OF USEFUL ADDRESSES AND WEB SITES
GLOSSARY OF TERMS
Overview of the Jordanian securities market
1. What size is the Jordanian securities market?
There are 235 companies listed on the Amman Stock Exchange (ASE). The total market capitalization equivalent to USD32.4 billion. In 2006, the traded volume was equivalent to USD20 billion.
2. Is all securities dealing in Jordan concentrated on one stock exchange?
There is only one securities exchange in Jordan, the ASE
. For trading in shares, (the new Securities Law No 76 for 2002 allowed the establishing of more than one securities market in the Kingdom), the market is organised into the First Market and the Second Market - on which listed securities are traded. There is also a Bond Market and a nascent mutual funds sector.
3. What types of securities are traded in the market?
Most securities trading is in equities. Currently, trading in Jordanian equity stocks on the First and Second Markets can be broken down as follows: Financial stocks (61.2%), Services (23.2%) and industrial (15.6%).
A number of debt securities are also listed on the ASE. In the public sector, Treasury Bonds are listed, with maturities of between three and seven years. Treasury Bills are listed. In addition, No Development Bonds were lisred witch issued by the Central Bank, and “Public Entities” Bonds, issued by entities such as the Water Authoritiy are also quoted on the ASE. All these bonds are guaranteed by the Government. Some bonds issued by private sector corporations are also traded. Also Right issues shall be listed and de-listed according to the provisions of the Trading in Right Issues Directives in force at the ASE.
4. Are there any Jordanian GDRs listed on foreign exchanges?
Yes there are a limited number of Jordanian GDRs. For example there is a GDR for Arab Potash Company listed in London.
5. What indicators are available of market performance and strength?
The ASE publishes free float, weighted and un-weighted price indices, a daily report showing the performance of each security, daily and weekly statistics for each market sector and a monthly statistical bulletin.
6. In what time zones is Jordan located, and on what days is the market open?
Jordan is within the Middle East time zone which is two hours ahead of GMT in winter and three hours ahead in summer. The ASE’s trading hours are Sunday to Thursday (inclusive), 10 am to 13 noon, except for public holidays.
7. How is the Exchange constituted and managed
The ASE was formed under the authority of the Securities Law of f97 to operate and develop the securities exchange in Jordan. In this respect, the ASE took over operation of the twenty-year old Amman Financial Market. Although formed under statute, the ASE is a privately managed body whose members are licensed financial brokers. Aside from the Securities Law, its key constitutional document is its By-laws. The ASE is governed by a seven member Board of Directors, four of whom are elected by the membership of the Exchange from their number. The remaining three Board members are appointed by the Jordan Securities Commission (JSC). Day-to-day management of the Exchange is performed by a Chief Executive Officer (CEO) who reports to the Board
8. Who are the main participants in the market?
There are 65 brokerage firms which are members of the ASE. Some are affiliated to major Jordanian banks whilst others are independent.
Investors include Jordanian citizens, both at home and abroad, and Jordanian and international institutional investors. Jordan has a strong tradition of retail investment in shares.
9. How is trading on the ASE organised?
Trading on the ASE takes place on an automated, order-driven system. Brokers trade on the system remotely (from their offices) or use trading screens located in the ASE headquarters.
10. How are securities traded?
Trading takes place on a continuous basis for quoted bonds and equity stocks traded on the First and Second Markets. Brokers enter buy and sell orders into the trading system. The system then matches those orders to produce a trade.
11. Can the Internet be used to trade shares?
The Internet cannot be used to access the ASE system, but some brokers offer a service enabling clients to place orders with them through the Internet.
12. Are securities traded anonymously?
Once an order is executed by the trading system, the system output allows the brokers to be identified to each other. Each broker, however, will not know whether the counterparty on the other side of the trade is a client or the broker acting for its own account. The identity of the client is not disclosed.
13. How can a foreign investor proceed to trade on the Jordanian securities market?
Foreign investors may trade through a member firm of the ASE. Contact details for all members are available on the ASE’s website (www.exchange.jo). Account opening procedures will vary from broker to broker but will normally involve entry into a written agreement between broker and client.
14. Who may enter trades in the market?
Orders may be placed only by ASE member firms, who must be licensed by the JSC to conduct financial brokerage activities. There is no direct access to the ASE system for non-members.
15. What are the licence requirements?
Applicants for a financial brokerage licence must:
- be a public shareholding company, a limited liability company, or a limited partnership-in-shares company incorporated in Jordan;
- meet minimum paid-up capital requirements and have in place bank guarantees in favour of the JSC (to be called to meet client and other claims in the event of a broker default); and
- have management which meets the required levels of expertise and proficiency.
16. Are individual brokers licensed?
Individual brokers employed by brokerage firms must be certified financial professionals, licensed by the JSC. To become a certified financial professional, applicants must meet standards set by the JSC as to education and good character and pass examinations which test their knowledge of the Jordanian securities market, the trading system and applicable regulations (see also para.47).
17. How can foreign banks or brokers become members of the ASE?
A foreign bank or broker would form a Jordanian subsidiary that would then apply to the JSC for a brokerage license. If granted a licence, the subsidiary would then automatically become a member of the ASE but as with other brokers would be able to trade on the ASE only once they meet the ASE’s technical requirements. ASE technical requirements are concerned in the main with ensuring competence in the use of the ASE trading system and knowledge of ASE rules. A full list of requirements is available from the ASE.
Listed securities
18. What are the requirements for the listing of shares on the ASE?
A company seeking a listing for its securities must apply to the ASE which admits securities to trading. However, JSC must approve a prospectus before securities are offered.
Listing requirements vary depending on whether the company is to be listed in the First Market, which is intended for the most actively traded “blue-chip” shares, or the Second Market which is intended for less liquid shares, particularly those issued by less established companies. Normally, shares will be traded on the Second Market before being admitted to the First Market, for which they will also need to meet more stringent listing requirements. However, the ASE may list shares arising from privatization directly on the First Market.
Listing requirements for the First Market include the following conditions relating to the issuer:
(1) net shareholders’ equity is not less than paid-up capital;
(2) The Company’s Free Float to the subscribed shares ratio by the end of its fiscal year must not be less than 5% if its paid-in capital is 50 million Jordan Dinars or more; 10% if its paid-in capital is less than 50 million Jordan Dinars.
(3) the company has made net pre-tax profits in at least two out of the last three years;
(4); The number of Company shareholders must not be less than 100 by the end of its fiscal year.
(5) its shares have been listed on the Second Market for at least a year; and
(6) The minimum days of trading in the Company shares must not be less than 20% of overall trading days over the last twelve months, and at least 10% of the Free Float must have been traded in during the same period.
To be listed on the Second market the issuer must have acquired the right to start operating.
Shares are transferred from the First Market to the Second Market if:
a. Reduction of the Net Shareholders’ Equity to less than 75% of the paid-in capital.
b. If the Company accounts show losses in the last three fiscal years.
c. If the Company’s Free Float ratio drops to less than the minimum set previously.
d. If the number of Company shareholders drops to less than 75 by the end of its fiscal year.
e. If the days of trading on Company shares over the last twelve months drop to less than the minimum set previously.
f. If the percentage of traded Free Float drops during the last twelve months to less than the minimum set previously.
f. When are the financial results of Jordanian listed companies announced to the public?
A company with shares listed on the ASE is required to publish its audited annual financial statements not more than three months after the end of the financial year (which is December 31 for most Jordanian companies). It is also required to publish its preliminary results (which must have been subject to examination by its auditors) not more than 45 days following the close of its financial year. Half-yearly financial reports are also required and must be published (following examination by the company’s auditors) not more than one month after the end of the relevant period. Also A Company listed on the First Market must provide the ASE with a quarterly report reviewed by its auditors and compared with the same period of the previous fiscal year, within one month of the end of the relevant quarter.
20. What other disclosures must listed companies make to shareholders or the market?
Issuers are required to disclose to JSC without delay:
(1) major changes to the company’s assets, long or short term obligations, capital structure, and controllers (where the change is caused by a change in the shareholdings in the company);
(2) major deals concluded or cancelled;
(3) unusual ventures;
(4) unexpected material losses;
(5) major board resolutions and any resolution of the company’s general assembly; and
(6) changes to Board personnel. They must also disclose any other fundamental matter or major event that could potentially impact upon the company’s profitability, financial position or share price. JSC will make this information publicly available through notices at the ASE and at the JSC premises, and will require issuers also to publish the information. If an issuer fails to publish, the JSC will take out advertisements on behalf of the issuer and require reimbursement of its costs from the issuer.
21. What other obligations are companies required to observe as a condition of listing?
Companies are required to draw up their accounts in accordance with the International Accounting Standards issued by the International Accounting Standards Board. To help prevent insider dealing, the Board of Directors and senior executive officers of an issuing company are required to inform the JSC of any shareholdings in the issuing company and related company, and any inside information they hold.
Dealing costs
22. What are the costs of dealing on the ASE?
The main cost of dealing is commission. Commissions for trading in equities on the First or Second Markets of the ASE usually vary between 0.0054 and 0.0074 of value traded. The commission will include (i) the brokerage firm’s own commission, which is limited to between 0.004 and 0.006 of value traded; and (ii) fees totalling 0.0014 of value traded payable to the key market authorities as to 0.0005 (JSC), 0.0005 (ASE) and 0.0004 (SDC) and levied by the broker on their behalf.
Commissions on bonds traded on the ASE vary between 0.00045 and 0.00095 of value traded. As with equities, this will comprise the brokers’ commissions’ (between 0.0003 and 0.0008 of value traded) and fees payable to the key market authorities.
23. Does this include stamp duty or similar transfer tax?
Jordan imposes no such stamp duty taxes on transactions in securities.
Taxes and exchange controls
24. Are there any restrictions on the repatriation of proceeds of sale of securities, or income from them?
None
25. Are dividends and interest paid on securities subject to withholding tax?
No tax is imposed on distributed dividends. There is no capital gains tax.
26. With which countries does Jordan have double taxation treaties?
Egypt, France, India, Indonesia, Malaysia, Poland, Romania, Tunisia, Turkey, Yemen and collectively, the members of the Council of Arab Economic Unity.
Foreign investment restrictions
27. Are there any restrictions or limits on foreign participation in listed companies?
No.
Settlement
28. How long do securities transactions take to settle?
The Securities Depository Center (SDC) implements settlement on “Delivery Versus Payment” DVP basis where trading contracts are settled electronically on T+2.
29. Is there a clearing house?
No. However, the SDC will assume the role of a clearing house as part of implementing automated settlement.
30. How are trades cleared and settled?
The transfer of ownership of deposited securities from the Seller's account to the Buyer's account is conducted via Book Entry as a result of the daily trading files submitted by the Amman Stock Exchange to the SDC. Securities remain suspended in the Buyer's account until the completion of the settlement process and full payment for their value. No transfer or pledge activity is permitted during this period.
Trading contracts have a status of accepted or suspended. The trading contract will be suspended if the number of securities registered in the Seller's account maintained by the broker is insufficient to execute the sale or the sold securities are subject to any ownership restriction. The broker is informed of suspended trading contracts and is required to correct the reasons for the suspension by T+1. The SDC suspends the amount that represents the value of suspended trading contracts until the broker corrects the reasons for the suspension. In cases where the Seller's Broker does not correct the reason for the suspension, the SDC will take appropriate measures to rectify the default and will initiate the buy-in procedures. The SDC undertakes the clearing process to calculate the broker's Net to Pay or Net to Receive in accordance with all the trading contracts executed by subtracting the total value of the broker's purchases of securities for the trading day from its total sales for that trading day. The amount that the broker must pay is divided into:
• Liquidity Reserve Amount which has to be paid by 9:00AM on T+1 to the SDC's Liquidity Reserve Account.
• Settlement amount to be paid by the broker by 9:00AM on T+2 which represents the difference between the Net to Pay amount and the Liquidity Reserve Amount.
If the broker does not pay the Liquidity Reserve Amount or the settlement amount within the specified timeframe, then the broker is considered in breach of its obligations and the SDC accordingly takes all the necessary measures to effect the financial settlement through the Settlement Guarantee Fund. Financial settlements are conducted between brokers, through the SDC, via money transfers from the brokers accounts to the SDC Settlement Account at the Central Bank of Jordan which was adopted as the Settlement Bank. Subsequent to money transfers credited to the SDC Settlement Account, the SDC will transfer these amounts to the brokers which are Net to Receive and the SDC will transfer the ownership of the securities concerned from the Seller's account maintained by his broker to the Buyer's accounts maintained by his broker.
31. Is payment made against delivery?
Yes, payment of the value of sold securities is made against delivery where settlement is effected on DVP basis.
32. What other procedures exist to reduce settlement risks?
The Settlement Guarantee Fund was established under the jurisdiction of the SDC to cover the buying member's cash default and the selling member's securities default in addition; buy-in and sell out procedures have been established to minimize settlement risk. Lending and borrowing arrangement will be implemented in the future.
33. How can a foreign investor arrange payment for a securities purchase?
Funds should be remitted direct to the executing broker (in accordance with the broker’s instruction), or indirectly via the investor’s global or local custodian. The broker can arrange conversion of foreign currency into Jordanian dinars.
Form of securities
34. Can securities be held in either physical or dematerialised form?
Currently Jordanian securities are held and traded in physical form only. However, in practice, many companies issue share certificates only on the request of the shareholder.
With the implementation of automated settlement, securities registers will be transferred to the SDC, which will maintain registers of securities in electronic book entry form. Securities will then be held and transferred through entries in the SDC’s electronic registers. However, because of the familiarity the Jordanian public has with share certificates, the SDC will facilitate the continued holding of securities in physical form (see paragraph 36 below).
35. If so, how does the form affect settlement, custody and deposit arrangements?
Once automated settlement is fully implemented, only dematerialised securities will be capable of settlement through the SDC.
36. Can securities be re-materialised?
Yes. There will be a facility whereby the buyer of securities held in book entry form can ask for a certificate. When the holder later sells he will need to surrender his certificate prior to execution of his order so that settlement can take place by book entry. The SDC will make additional charges for providing this service.
Protection of holders of securities
37. How is the ownership of securities registered?
Under the Securities Law the SDC is the only registrar of securities in Jordan. At present, the issuers continue to maintain the share registers, but on the SDC’s behalf. When securities are dematerialised, their records will fall under the SDC’s direct control. However, issuers will continue to maintain registers in respect of securities held in physical form. It is expected that the most frequently traded securities will be dematerialised first.
38. How are the beneficial owners of securities protected?
The SDC’s records constitute prima facie legal evidence of ownership of securities. When securities are dematerialised and the beneficial owner appoints a licensed custodian to be the registered holder of securities, the SDC will also record the beneficial owner by way of an identity number unique to him (see also Custody Arrangements in paras. 49 – 51).
Banking system
39. Who regulates banks in Jordan?
Banks are regulated by the Central Bank of Jordan under the authority of the Banks Law.
To the extent that a bank or its subsidiary carries on activities regulated under the Securities Law (including brokerage on the ASE), that bank or subsidiary must be licensed and supervised by the JSC under the Securities Law. Where a bank itself conducts securities business, that activity is recorded in separate accounts in its books and the capital funds allocated to such activity are monitored by the Central Bank of Jordan (CBJ). CBJ regulations set out detailed provisions on this matter.
40. Do Basel prudential standards apply?
Yes. The Central Bank of Jordan sets minimum capital requirements based on the risk weighting of bank assets set out in the Basel Accord. The minimum capital percentage applicable to licensed banks is 12%.
41. Have foreign banks established in the country?
Yes. A number of foreign banks including HSBC, Standard Chartered and Citibank have established branches or banking subsidiaries in Jordan.
Distinctions between bank and broker regulation
42. What are the main differences between the regulation of banks and brokerage firms?
In their conduct of securities business banks and brokers must meet the same regulatory requirements. See paragraph 39 above for an example of requirements on banks carrying on securities business. For capital adequacy requirements please refer to paragraph 48.
Regulation
43. Who is the securities regulator and what are its role and responsibilities?
The securities regulator is the Jordan Securities Commission (JSC). It regulates the issuance, primary offering and secondary trading of securities; monitors the ASE and SDC; and licenses and regulates entities conducting securities business (such as financial brokerage, investment management, financial advisory services, underwriting and custodial services) and their personnel. Its aims are to facilitate: (1) that securities dealing takes place in a sound environment; and (2) the protection of investors.
The JSC’s powers are vested in a Board of five full-time Commissioners, who are appointed by the Office of the Prime Minister. Implementation of Commission decisions is the responsibility of the Chairman of the Commission, his delegate, or, in the Chairman’s absence, the Deputy Chairman.
44. What procedures are in place to monitor and enforce compliance with securities laws and regulations?
Financial services companies are subject to periodic inspection by the JSC Inspection Division. The JSC Capital Market Monitoring Division monitors the market for insider trading, market manipulation and other breaches. It works closely with ASE Market Watch, which carries on real time monitoring of ASE trading, and the SDC Surveillance Department. JSC Disclosure Division monitors issuers' compliance with disclosure requirements.
Enforcement is primarily the responsibility of the JSC. It can suspend financial services companies, remove their licences and refer to the prosecuting authorities persons who carry on regulated activities whilst unlicensed or commit insider dealing or market manipulation offences.
45. Can the regulator limit, suspend or terminate a firm’s right to trade?
Yes, in particular under Article 69 of the Securities Law of 1997.
Types of firms regulated
46. What types of firms and/or securities market activities are regulated?
The JSC licenses and regulates firms which carry on the following activities:
- investment trusteeship (for an explanation of this expression please see paragraph 63);
- investment management;
- financial advisory services;
- financial brokerage (i.e: broker/dealerships);
- custodial services;
- management of primary issues; and
- underwriting.
Separately, the JSC licenses and regulates investment companies and funds, and supervises the ASE and SDC.
47. Are individuals in those firms regulated?
Individuals carrying on investment trusteeship and investment management, giving financial advice and conducting financial brokerage (see paragraph 16) are required to be certified financial professionals. Certified financial professionals must meet standards set by the JSC in relation to education and good character and pass examinations which test knowledge of the Jordanian securities market, the regulated activities they wish to perform, and the applicable regulations.
Capital adequacy requirements
48. Are ASE members subject to minimum capital adequacy and liquidity requirements?
ASE members are required to meet minimum paid-up capital requirements set by the JSC and have in place bank guarantees in favour of the JSC to be exercised to meet client and other claims if the broker defaults.
In addition, ASE members must also comply with the JSC Solvency Regulations. In broad terms, the Solvency Regulations require brokers to maintain (1) sufficient liquidity to cover their short term commitments and (2) adequate capital in relation to the scale of business they undertake. To monitor compliance with these requirements, brokerage firms must provide the JSC with a weekly report of their financial position.
Custody arrangements
49. In what ways can a foreign investor hold Jordanian securities?
Like Jordanian investors, foreign investors can hold securities registered in their name. Alternatively, the investor may appoint a custodian licensed by the JSC in Jordan. However, Jordanian law does not preclude the use of foreign custodians, nominees or other fiduciaries to hold securities.
50. Are local custodians regulated?
Yes. To obtain a licence to provide custodial services, an applicant must meet similar licensing conditions as brokerage firms (see paragraph 15). In addition, a firm providing custodial services must meet a minimum share capital requirement of JD 1 million. A custodian must comply with specific custody rules including requirements to: (1) segregate client securities from its own; (2) not use client securities as security against its own commitments; and (3) not dispose of securities except on terms agreed by the client.
51. What role does the Securities Depository Centre play?
The SDC is responsible for the settlement of trades and the registration of ownership of securities traded on the ASE. In the near future, the settlement of trades will be fully automated on a DVP basis and investors holding securities in dematerialised form will hold securities accounts with the SDC. See also paragraphs 28 to 31.
Corporate actions
52. How can foreign investors be notified of and act upon corporate actions?
Generally, the investor or his custodian deals with issuers directly. In the future, SDC will assist issuers to send notices and circulars, to make distributions, and to deal with changes to the issuer’s paid-up capital.
Protection of client assets (money and securities)/ protection against failed trades and broker defaults
53. Are brokers required to segregate clients’ assets from their own?
Brokerage firms may not hold client securities, except occasionally certificates (not registered in the broker’s name) in the course of settlement. Securities not registered in the client’s name are registered in the name of licensed custodians who must segregate them from their own assets (see paragraph 50). A brokerage firm can become a licensed custodian if it meets the applicable licensing requirements, but no licensed brokerage firms are currently also licensed as custodians. Whilst the Securities Law does not currently require brokerage firms to segregate cash received from or for the account of clients, it is expected that the law will be amended in 2001 to require segregation.
54. In what other ways are investors protected against failed trades and brokers’ defaults?
In addition to the bank guarantees in favour of the JSC and the JSC Solvency Regulations (for both, see paragraph 48), as part of the ongoing reform of the Jordanian capital markets and regulations, new risk management procedures are being developed. These include stronger settlement arrangements consistent with international standards, a settlement guarantee fund and buy-in and sell-out procedures.
Transparency of shareholdings
55. Who maintains the ownership records of securities traded on the Jordanian securities market?
See paragraphs 38 and 49 – 51.
56. What arrangements ensure that shareholdings are transparent?/Are controllers or beneficial owners of significant stakes required to report their interests?
Upon listing a company is required to disclose the names of, and number of securities held by, shareholders holding more than 5% of the company’s issued shares. Any person who holds or controls 5% or more of any securities for one issuing company, is required to inform the JSC in writing on attaining such a holding and on any changes to his holding. The JSC will note this information for use in any future investigation.
Corporate governance/Protection of minority shareholders
57. How are minority shareholders protected in Jordanian companies?
The General Assembly of the company can be required to hold an extraordinary meeting upon an application by shareholders representing not less than 15% of the subscribed share capital. Shareholders representing not less than 15% of the subscribed share capital can also require the Controller of Companies to inspect the company for possible violations.
58. What recourse is available to shareholders against the Board and management of a listed company?
Under the Companies Law, the Chairman and members of the board of a Jordanian company may be held responsible for breaches by the company of law or the provisions of the company's articles and memorandum of association. They may also be held jointly and severally liable in damages for losses resulting from the breach.
On a liquidation, if the company's assets are insufficient to meet its obligations as a result of the negligence of its chairman, members of the board, the general manager, or its auditors, the court may charge those responsible for the deficit jointly and severally.
Any shareholder of the company may sue in respect of the matters raised above.
Take-over regulation
59. Are take-overs of Jordanian listed companies regulated?
The JSC regulates “tender offers”. A tender offer is a general offer made publicly and directly to holders of a class of securities issued by a company to buy some or all of their holdings.
Insider dealing and market abuse
60. How is the Jordanian market protected from insider dealing and other abuse?
Article 68 of the Securities Law makes insider dealing and other forms of market abuse offences punishable by a maximum of three years’ imprisonment and a fine of up to five times the profit made or loss avoided by the breach, plus a fine of not more than JD 20,000.
The JSC Capital Market Monitoring Division, working with ASE Market Watch, monitors the market for signs of insider trading and market abuse. These are specific provisions designed to detect insider dealing in the Disclosure directives.
Investment companies and investment funds
61. Are there investment companies and funds specialising in the Jordanian market?
Yes. There are two investment funds and 10 investment companies specialising in the Jordanian market.
62. Are these incorporated in Jordan or offshore?
In Jordan.
63. How are they regulated?
Mutual funds established in Jordan are regulated under the Securities Law and applicable JSC regulations. Funds must be managed by an investment manager and be under the control of an “investment trustee” (a body which oversees the activities of an investment manager in relation to investment funds), both of whom must be licensed by the JSC to perform those activities.
Information sources General information
64. Where can I find general information on (a) Jordan’s economy, and (b) the Jordanian securities market?
The Central Bank of Jordan publishes a comprehensive monthly statistical bulletin including full details of the Jordanian economy. This is available from its website (http//www.cbj.gov.jo) in both Arabic and English. The Ministry of Finance also publishes in Arabic and English a monthly report on economic policy and government finance. Relevant information may also be obtained from the Ministry of Industry and Trade.
The JSC issues quarterly bulletins and an annual report.
The ASE publishes a monthly newsletter and statistical bulletin and an annual report.
Information available from the ASE, JSC and Central Bank of Jordan and many other sources is published in both English and Arabic.
Amman Stock Exchangef
65. Where can I obtain a list of the securities that trade on the ASE?
The ASE website (www.exchange.jo) details all securities which are listed or admitted for trading.
66. Where can I obtain historical and current prices for such securities?
For historical prices, please contact the ASE at the address below. For current prices, the ASE website contains a ticker showing the prices of latest trades.
67. Where can additional information on Jordanian issues and issuers be found?
The ASE produces a Companies Guide, which is available through its offices.
68. Is real time market information available?
In-depth information on orders and trades is available on-line via data vendors (Reuters, Access). The last traded price is available over the Internet in real time, subject to a delay of 1-2 minutes.
Law and regulations
69. Where can I find the Jordanian Companies and Securities laws, and the rules and regulations made by the Jordan Securities Commission, the Amman Stock Exchange and the Securities Depository Centre?
An English translation of the Securities Law is available from the JSC. The JSC, ASE and SDC also publish their rules and regulations in both English and Arabic in hard copy and on their websites (see below). Each organisation may also be contacted in writing at the addresses below.
Brokers
70. How can I contact a broker/dealer in Amman?
Contact details for all brokers and dealers are set out on the ASE’s website (www.exchange.jo).
LIST OF USEFUL ADDRESSES AND WEB SITES
Jordan Securities Commission
P.O. Box 8802
Amman 11121
Jordan
Tel: +962 6 5607171/5607179
Fax: +962 6 5686830
Email: research@jsc.gov.jo
Website: www.jsc.gov.jo
Amman Stock Exchange
P.O. Box 212466
Amman 11121
Jordan
Tel: +962 6 566296/7/8
Fax: +962 6 5664071
Email: info@ase.com.jo
Website: www.Exchange.jo
Securities Depository Centre
P.O. Box 212466
Amman 11121
Jordan
Tel: +962 6 5672788; +962 6 5672503/547
Fax: +962 6 5672590
Email: depository@sdc.com.jo
Website: www.sdc.com.jo
Central Bank of Jordan
P.O. Box 37
Amman 11118
Jordan
Tel: +962 6 4630301/10 (10 Lines)
Fax: +962 6 4638889
Email: cbj@gov.jo
Website: www.cbj.gov.jo
Ministry of Finance
P.O. Box 85
Amman 11118
Jordan
Tel: +962 6 463621
Fax: +962 6 4618528
Email: webmaster@mof.gov.jo
Website: www.mof.gov.jo
Ministry of Industry and Trade
P.O. Box 2019
Amman
Jordan
Tel: +962 6 5607191
Fax: +962 6 5684692
Email: info@mit.gov.jo
Website: www.mit.gov.jo
Jordanian Businessmen Association
P.O. Box 926182
Amman 11190
Jordan
Tel: +962 6 5680855; +962 6 5669328
Fax: +962 6 5680663
Email: jba@nets.com.jo
Association of Banks in Jordan
P.O. Box 926174
Amman
Jordan
Tel: +962 6 5601256; +962 6 5669328
Fax: +962 6 5687011
Email: abj@joinnet.com.jo
Amman Chamber of Industry
P.O. Box 1800
Amman 1118
Jordan
Tel: +962 6 4643001
Fax: +962 6 4647852
Email: aci@aci.org.jo
f
Amman Chamber of Commerce
P.O. Box 227
Amman 11118
Jordan
Tel: +962 6 5666151
Fax: +962 6 5666155
Email: acoc@index.com.jo
Jordan Investment Board
P.O. Box 89311
Amman 11821
Jordan
Tel: +962 6 553081
Fax: +962 6 5521084
Email: info@jib.com.jo
Website: www.jordaninvestment.com
Department of Statistics
P.O. Box 2015
Amman 11181
Jordan
Tel: +962 6 5342171
Fax: +962 6 5333518
Email: stat@dos.gov.job
Basel Accord: popular name for the Bank for International Settlement’s paper “International Convergence of Capital Measurement and Capital Standards” originally published in July 1988; it sets out principles for the regulation of bank capital adequacy.
Custodian: also known as a depository, a custodian is appointed to hold assets for a third party or to ensure that they are kept safe.
Dematerialised Securities: securities, entitlement to which is evidenced not in paper format or by a physical certificate but by entry in an electronic register.
Double Taxation Treaties: bilateral agreements entered into between two countries in order to relieve the double taxation that occurs when income or gains are in principle taxable in both jurisdictions.
Financial Brokerage: the buying and selling of securities by a financial broker, for another person on their instructions.
First Market: That part of the secondary market through which trading takes place in securities governed by special listing rules.
Global Depository Receipt: a receipt denoting ownership of foreign-based corporation stock shares which are traded in numerous capital markets around the world.
Investment Trustee: a body licensed under the Securities Law which oversees the activities of an investment manager in relation to investment funds.
Mutual Fund: pools of money, the investment of which is managed by an investment company.
Second Market: That part of the secondary market through which trading takes place in securities governed by special listing rules.
Securities: generic term for transferable financial instruments, often traded on an official exchange; broadly classified as either debt (bond, notes), equity (shares, stock) or a hybrid of debt and equity (convertibles).
Settlement: the process of ensuring the purchaser receives its securities and the seller its money.
Settlement Risk: risk arising from delay to or failure of settlement.
Treasury Bill: a Bill of Exchange issued by the Government and generally of short maturity.
Treasury Bonds: a debt security issued by the Government.
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