Market Closed Date 19/01/2017
Other news 2004

December 2004

By-Laws of the Settlement Guarantee Fund
The JSC Board of Commissioners decided to put in operation the provisions of the By-Laws of the Settlement Guarantee Fund as of the 31 st of December 2004, with some amendments to them. The Fund shall be considered as the de facto and de jure successor of the Financial Brokers' Guarantee Fund; and all the latter's rights, obligations, assets, registers and money shall revert to it.

December 2004

By-Laws of the Settlement Guarantee Fund
The JSC Board of Commissioners decided to put in operation the provisions of the By-Laws of the Settlement Guarantee Fund as of the 31 st of December 2004, with some amendments to them. The Fund shall be considered as the de facto and de jure successor of the Financial Brokers' Guarantee Fund; and all the latter's rights, obligations, assets, registers and money shall revert to it.

SDC Transfers Shareholder Registers
The SDC decided to transfer shareholder registers and to take them in its custody as of the beginning of next year in pursuance of Article 117 of the Securities Law of 2002 and the Securities Registration, Deposit and Settlement Instructions of this year. Such a register transfer will take place in two stages. The first stage was when public shareholding companies handed over to the SDC a CD containing a copy of their documented and non-documented shareholder register, with details about shareholder name, nationality, SDC number, shareholder number, balance of owned shares specifying the amount held at present, free shares, and shares held as a deposit or pledge. In the second stage, each public shareholding company will be given on January 6 th of next year a final shareholder register for the year 2004, that will contain the deposited and non-deposited shareholder register on a CD, as well as a print out statement, and a statement of the transfer of joint ownership of shares of margin account customers.

Dr. Ahmad Mustafa Vice Chairman of JSC
A Royal Decree appointed Dr. Ahmad Mustafa as vice-chairman of the JSC in succession to Dr. Tayseer Abdel-Jaber as of October 12, 2004. Dr. Mustafa has occupied several positions at the Central Bank of Jordan, the latest of which was deputy governor from 1998 to 2003. He also served as an assistant Executive Director for the Middle East Countries Group at the IMF for three years. He has obtained his PhD in Economics from Texas University in Austin, USA.

Training Workshop on the Thirty principles of IOSCO
A delegation from the ASE and the JSC participated in the training workshop held in Madrid during the period 15-19 November and organized by IOSCO to train staff of exchanges and securities commissions and legislators on IOSCO principles. More than 50 participants attended the workshop from various Arab and non-Arab countries and representatives from international organizations. Different lectures were made on IOSCO's Thirty Principles especially what's called “The Methodology and Action Plan”. Light was shed on some country experiences, such as Morocco, Turkey and Salvador in this field. To further activate participation in and increase the benefits of the process, working groups were set during which simulations of self-evaluation methodology and action plans were implemented.

US Delegation Visit
Ms. Holy Vineyard, Deputy Assistant Secretary US Department of Commerce and her accompanying delegation visited the Jordanian Capital Market institutions, and met with the acting chairman of the JSC, JSC Commissioners, deputy CEO of the ASE Mr. Nader Azar, deputy CEO of the Securities Depository Center (SDC) Mr. Khalil Nasser and a number of officials from these institutions. The acting chairman of the JSC welcomed the delegation and thanked them for their interest in the Jordanian capital market. He expressed Jordan's gratitude to the USA and its keen interest in bolstering strong ties with Jordan. He presented to them the JSC and the capital market institutions gratitude for the technical and consultative assistance afforded by the US government through its U.S. AID and AMIR program. He gave them a brief summary of the most important economic and human developments in Jordan as well as the most significant technical, professional and legislative improvements in the capital market. He noted the role of the JSC as an institution that enjoys administrative and financial autonomy with supervisory and regulatory control over the national capital market, and the advanced state of affairs on the Jordanian market. He emphasized that the legislative and regulatory progress that has been made on the Jordanian Capital Market over the last few year reassures domestic and international investors and complies with the government's orientation to create a confidence-inspiring legislative environment. Following that Mr. Nader Azar reviewed the most important technical and legislative developments on the ASE, notably in Electronic Trading, Remote Trading, Management Information System, information dissemination and raising the culture of investment in securities by the ASE. He noted the exceptional performance of the ASE, particularly in 2004, which has been a golden year for all ASE performance indicators.

Emerging Markets Committee Meeting
The JSC and ASE, represented by Dr. Bassam Saket, Mr. Mohammed Saleh Horani, and Mr. Jalil Tarif attended the International Organization of Securities Commissions (IOSCO) Emerging Markets Committee meeting held in Cairo. Some of the most important issues related to emerging capital markets and their future challenges were discussed along with the most important resolutions and recommendations adopted by IOSCO and its various organs in the different fields of capital markets

The ASE at NSC-Unix Meeting
The JSC and ASE, represented by Dr. Bassam Saket, chairman of the JSC, Mr. Mohammed Saleh Horani, chairman of the ASE, Mr. Jalil Tarif, CEO of the ASE, Mr. Mohammed Khatib head of the IT & Communications Department and Mr. Mohammed Shanyoor, the Listing & Operations Department took part in the NSC-Unix meeting held in Morocco. Many important issues related to the latest developments in electronic trading systems (ETS), and means of coordination in the development and upgrading of ETS in capital markets according to international standards were discussed. The latest upgrades in the trading and clearing systems were presented at the meeting.

International Businessmen's Forum
The JSC represented by Dr. Bassam Saket, chairman of the Jordan Securities Commission (JSC) and Mr. Jalil Tarif, CEO of the ASE took part in the International Businessmen's Forum in Luxemburg. Dr. Saket presented the most significant developments of the Jordanian Capital Market, and reviewed issues such as legislative and technical improvements made in the field of investor protection, the boost in investment culture, capital market supervision, and promoting disclosure, transparency and efficiency on the market. Then Mr. Tarif went over the most remarkable developments that were seen on the ASE over the few recent years in terms of technical infrastructure developments, legislations that regulate ASE business and improved data dissemination techniques that boosted market efficiency. He also touched upon the ASE performance indicators and compared them to other Arab and international exchanges, clearly showing the unprecedented growth in all ASE performance indicators over the last few years.

November 2004

The Eighth Meeting of the Arab Business Forum
Deputy Prime Minister, Minister of Trade and Industry Dr. Mohammed Halyka inaugurated the Eighth Meeting of the Arab Business Forum organized by the Jordanian Business Association under the title of “Towards a Conducive and Competitive Investment Environment in the Arab Countries”. The meeting had a broad attendance from both private and public sectors at the domestic and Arab levels. The meeting debated several themes, most importantly the role of the private sector in the economic and social development of Arab countries and the responsibilities that befall the governments to enable the private sector to play its role. In addition to that, the investment climate in Arab countries, the experiences of Arab businessmen, liberalization of the telecommunications sector in Arab countries and investment opportunities and experiences were some other issues discussed during the meeting. The ASE participated in the Exhibition organized along with the meeting with a separate ward that managed to draw the attention of all participants.

Annual Conference of the World Federation of Exchanges
Tokyo Stock Exchange hosted the Forty-Fourth Ordinary Meeting of the General Assembly of World Federation of Exchanges (WFE) last October, with the attendance of sixty stock exchanges members of the WFE, inclusive of the ASE represented by its deputy CEO Mr. Nader Azar. A New Board of Directors was elected, with the CEO of the Tokyo Stock Exchange as Chairman and the CEO of the Borse Italiana as Vice. During the meeting, great attention was paid to the business standards of members adhering to WFE, as they assure the operation of a superior, transparent market for the listing and trading of securities and derivative instruments. A series of business policy roundtables were held along the sidelines to discuss a number of securities industry issues. Bolsa de Colombia was admitted to membership. It is to be noted that the ASE has joint WFE in March 1999 as an observer, then was accepted as an associate member last July and is working on becoming a full fledged member.

October 2004

A Delegation From Iraqi Capital Market Institutions Visits the ASE
Mr. Jalil Tarif the ASE CEO received a visiting delegation from Iraqi capital market institutions headed by the board of dirctor of Iraq Securities Commission Mr. Loai Al Okili. The meeting was attended by the ASE heads of the departments. The delegation took stock of the latest developments on the Jordanian capital market, where they listened to a detailed presentation on the enhancement and the most salient developments of the ASE legislative and technical infrastructures, as well as progress made in the field of disclosure and data dissemination. They visited the Investors Gallery and the various facilities and departments of the ASE. This visit is part of the delegation visit to Jordan that aimed at mutual exchange of expertise and information in the service of Iraqi capital market. The delegation also toured the Jordan Securities Commission (JSC) and the Securities Depository Center (SDC). It is to be noted that the Iraq Stock Exchange started its activities during the first week of July 2004.

A Training Program on Capital Market Surveillance
Dr. Bassam Saket the Executive Chairman of the Jordan Securities Commission Board of Commissioners opened a specialized regulation program which was held during the period from 20-23 September, 2004. The program Co-Sponsored by the US Securities and Exchange Commission the (SEC), the National Association of Securities Dealers (NASD) and supported by the USAID.
This program, which was held in Amman for the third consecutive year and was attended by 100 participants from 14 countries, addressed the pressing challenges facing the regional securities commissions, stock exchanges and other financial institutions, and it focused on the corporate governance, investor education, insider trading and risk management.

The Annual General Assembly for the FEAS
Mr. Nader Azar the Deputy CEO represented the ASE in the 10th Annual General Assembly Meetings for the Federation of European Asian Stock Exchanges (FEAS), which held in Navigate, Croatia in the period between 17-19 September, 2004. Many issues were discussed during the meetings, task forces were elected and a new executive committee for the Federation was elected and the ASE was elected to its membership from 27 members. Four new exchanges were approved as members in the Federation, these exchanges are: Abu Dhabi, Banja luka, Belgrade and Sarajevo increasing the number of the FEAS members to 27. The Federation activities and financial accounts during 2004 were reviewed. Also the financial statements, future plan and the coming year budget for the Federation were approved.

Euromoney Arab Financial Forum
In his participation in the 9th Arab Financial Forum which was held in Egypt during last September and organized by the Euromoney Arab Financial Forum, Mr. Jalil Tarif the ASE CEO gave a presentation on the latest legislative and technical developments in the Capital Market of Jordan and their impact on the Jordanian Economy. Also he pointed that the Arab capital markets witnessed positive changes during the past few years mainly in the using of the latest technologies in the field of trading and clearing and settlement systems. Also these markets showed an improvement in their liquidity, trading volume for the Arab capital markets represent in the Arab Monetary Fund database increased from US 36.6 billion in the year 2000 to US 230.4 billion in the year 2003. The market capitalization of said markets has doubled many times in recent years to reach US 500 billion in the mean time.

Capital Market Institutions Delegation to Euronext-Paris
A Delegation represented the JSC, the ASE and the SDC paid a visit to Euronext-Paris Stock Exchange. The latest version of the NSC Unix trading system was presented, as well as the latest products in the field of trading and surveillance screens of GL. The delegation discussed the ability of applying these new version at the ASE. The delegation paid visits to Euronext-Amsterdam and Euronext-Brussels.

A Lecture in the Jordanian Development Center
Mr. Jalil Tarif the CEO gave a lecture at the Jordanian Development Center entitled “Investment development in Jordan Capital Market”. He viewed the latest development at the ASE, and talked deeply about the legislative developments which were adopted by the ASE recently. Mr. Tarif viewed the investment opportunities the ASE provides to all market participants.

September 2004

The ASE Participation in Fuhais Festival

The ASE took part in the First National Industries Exhibition that was organized along side of the Fuhais Festival. Dr. Mohammed Halayka, Minister of Trade and Industry and Vice Premier, inaugurated the exhibition. He visited the ASE booth where he was received by the ASE CEO Mr. Jali Tarif. The ASE participation in this exhibition falls in step with its keen interest in interacting with the local community and contributing in the various local and foreign economic activities which directly serve the message of the ASE.

 

The Cabinet approves Foreign Investment in Jordanian Securities

In its session of August 10th, 2004 the Cabinet approved the Strategy of Foreign Investment in Jordanian Securities that was drafted by the Committee set up by the Cabinet for this purpose. The Committee is chaired by Dr. Bassam Saket, Chairman of the JSC, and its membership is composed of Dr. Tayseer Abdel-Jaber, Deputy Chairman of the JSC, Mr. Jalil Tarif, CEO of the ASE, Ms. Reem Badran, DG of the Investment Board, Mr. Samir Jaradat, CEO of the SDC and Mr. Jawad Kharoof, Chairman of the Capital Market Certified Professionals’ Association.

This Strategy was prepared upon the request of the Cabinet as part of the government’s efforts to bolster national economy institutions and enhance investment in the Kingdom. It submitted a paper on the most important developments seen on the capital market over the last few years, namely the separation of the supervisory from the executive roles, the establishment of independent institutions, the enhancement of disclosure of material information to investors and the implementation of electronic trading, settlement and clearance systems.

This Strategy represents a vision of continuous legislative, regulatory and technical development of the national capital market to keep pace with the latest international practices and standards, to bolster investor confidence, to attract local and foreign investments and to further contribute to economic development of Jordan. This vision draws its inspiration from the JSC mission, which is regulation, development and supervision of the capital market in a way that would secure fairness, efficiency and transparency and would protect it along with investors in securities from potential risks. It exerts all efforts to deepen the market through a number of steps such as promoting the bonds market, licensing new financial services and issuing new monetary instruments. In order to enhance investor management and protection, the latest international criteria shall be implemented and any loopholes in practical implementation shall be addressed, the electronic systems at the JSC, the ASE and the SDC shall be continuously updated, the regulatory working procedures of said institutions as well as the code of ethics of their staff shall be further developed, an investor protection fund shall be set up and the Settlement Guarantee Fund shall be supervised. Some of the most important axes of the JSC strategy to promote investment rely on stepping up cooperation with local and foreign parties and Arab and international institutions to contribute to market development and to do away with any investment impediments that may exist.

Issuance of the Instructions for the Registration, Deposit and Settlement of Securities

The JSC issued its Instructions for the Registration, Deposit and Settlement of Securities for the year 2004 with JSC approval. They shall enter into force as of the fist of September. The Instructions were issued in pursuance to Article 83(a) of the Securities Law no. 76 of the year 2002. They lay out the regulatory framework for all matters related to the deposit and settlement of securities and clarify commitments of all members of the SDC. They regulate the relationship between issuers of securities and their shareholders, the SDC, the brokers and their customers.

The Instructions covered the responsibilities of all SDC members, and liabilities entailed in case of any breach thereof.  Their issuance came in response to the requirements of the new Securities Law and falls in step with the SDC shift towards DVP of trading contracts executed on the ASE and transfer of shareholder registers.

August 2004

Authorizing new companies to have marginal financing

The JSC Board of Commissioners has decided to adopt a new list of securities that can be traded on the margin as of August 1st, 2004. The list included sixty two listed companies in addition to Development bonds, Treasury bonds and bonds of public corporations and corporate bonds of public shareholding companies.

Marginal financing is a monetary instrument that contributes to the development and deepening of the capital market, boosts trading on securities and gives investors an incentive to step up their market investments. The initial margin percentage which the client pays out of the value of the transaction is 50% for shares and 30% for bonds, while the correction margin, which is the minimum percentage of the client’s participation at any time, is 30% for shares and 25% for bonds.

July 2004

Enhance the Capacity of Financial Markets
The ASE, represented by its Chairman, Mr. Mohammed Saleh AL- Horani participated in the expert meeting on “Enhancing the Capacity of Financial Markets to Promote Intra-Investment among IDB Member Countries” organized by the Islamic Development Bank (IDB) in Jeddah. Issues related to capital market development in Islamic countries and means of inter-cooperation and investment, seeking practical means for securing optimum financial cooperation amongst member states and bolstering the institutional capacities of the financial markets to attract foreign and local investment were some of the most important issues debated during the meeting.

Corporate Governance Workshop
The ASE, represented by its CEO, Mr. Jalil Tarif participated in the Second Corporate Governance in MENA Region workshop held in Beirut last June, organized by the Global Corporate Governance Forum (GCGF), the World Bank group, Center for International Private Enterprise (CIPE) and the Organization of Economic Cooperation and Development (OECD), under the title “Improving transparency and disclosure”. 120 participants from the Middle East and North Africa took part in this meeting that focused on major important issues, such as the review of steps adopted and the problems encountered by participating countries in the field of disclosure and transparency, the importance for said countries to evaluate their corporate governance situation and their degree of compliance with the OECD principles in this respect, the need to focus on awareness raising and training at the government, company, directors and public levels, as well as the need to highlight the importance of setting up a specialized Institute of Directors for the training of managers and all those related to the capital market. Mr. Tarif fleshed out the role of the ASE in disclosure and transparency, particularly in the light of the new Listing Directives that enter into force at the beginning of July. It was underscored that Jordan has invites the World Bank to make an assessment of the corporate governance situation in Jordan .

SDC Joins ANNA
The SDC took part in the general assembly meeting of Association of National Numbering Agencies (ANNA) held in Oslo, with the participation of more than 60 states whereby its membership was accepted. The SDC was also adopted as an agent for ANNA in the Middle East. ANNA was set up in 1994 and is membership is made up of all institutions concerned with identification of securities.

June 2004

The 29th Annual Conference of the IOSCO
Under the patronage of His Majesty King Abdullah II, the Jordan Securities Commission (JSC) hosted the 29th Annual Conference of the International Organization of Securities Commissions (IOSCO) which was held in May and was attended by 500 high-ranking officials from securities regulatory institutions and stock exchanges, chairmen and executive directors of international financial institutions and investment banking professionals from 100 counties. Jordan’ selection as a venue for this meeting, which is a first at the Arab region, comes in appreciation of this country’s commitment to its capital market development.
The Conference commences with two days of member committee meetings followed by two days of public panel discussions. The member committees include four regional standing committees discussed significant regional issues. The Technical Committee is comprised of 15 members representing regulators of the more established, developed and internationalized markets held a meeting. The Technical Committee focuses on major regulatory issues and challenges including standards for disclosure and accounting, market regulation, enforcement and information exchange. The Emerging Markets Committee (EMC) is comprised of those members not represented on the Technical Committee; who represent jurisdiction from developing countries also met and one of the more important initiatives of the EMC is an assistance program to help members become signatories to the 2002 IOSCO Multilateral Memorandum of Understanding under which regulators have agreed to specific standards of consultation, cooperation and information exchange. The conference reviewed the financial and administrative activities of the organization and the previous and current budgets were approved. Other IOSCO organ meetings were held, and Jordan was reelected on the Executive Committee; it was also elected as vice chairman for both the EMC and the Africa and Middle East Committee. Three new members were accepted, Jakarta, Karachi and Taipei stock exchanges raising the total membership to 174. New standards for securities industry, credit rating agencies, client and beneficiary identification were adopted, thus reflecting the regulator community’s commitment to an active and reasonable supervision. Along the sidelines, 17 local, Arab and international corporations took part in an exhibition, and the ASE had a booth which attracted scores of visitors. Other Jordanian, Saudi, Bahraini, Hong Kong, Italian, Sri Lankan and Chinese companies were present there too.
Established over two decades ago, the IOSCO is the primary forum for international cooperation among securities regulators and is recognized as the international standard-setter for the securities regulation sector to maintain efficient and sound securities markets. The IOSCO membership comprises capital market regulators, the World Bank, the IMF, stock exchanges and other financial and monetary institutions. The IOSCO’s members regulate more than 90 % of the world’s securities markets, which makes IOSCO the most important organization in capital market supervision in the world.

ASE at the World Economic Forum
Under royal patronage, the Davos World Economic Forum was held for the second time in Jordan, and was attended by more than 3100 international political and economic personalities, a large number of heads of states and governments, ministers, CEOs and representatives of international corporations, intellectuals and media people, as well as large segments from both the public and private sectors from all Arab countries. Mr. Jalil Tarif, the Executive Manager, represented the ASE at this important event. The forum discussed a host of political, economic and social issues that are vital in connection with the international community and the Middle East region. The Jordanian economy was the topic of one of the workshops, and a number of papers dealt with the investment climate in Jordan and statistical data on growth in the various economic fields. ASE achievements over the last few years in terms of quantitative leaps and records attracted the interest of participants.

Presidents and CEO’s and their Deputies Meeting
The ASE represented by Mr. Nader Azar the Deputy to the Executive Manager chaired the Marketing Committee Meeting of FEAS, which came along with the Presidents and CEO’s and their deputies meeting in Muscat, Oman. The Byelaws were amended to allow for the adherence of non-stock members and broaden the FEAS membership base, and several task forces have been formed to execute, within a specified time frame, well-defined tasks.

SDC Registers its SCORPIO
The Securities Depository Center (SDC) has completed the trademark registration of its electronic system “Information Online Registry Processing & Securities Central Operation” (SCORPIO) at the Industrial Property Protection Directorate of the Ministry of Industry and Trade as well as at the National Library. SCORPIO was locally developed by Jordanians to enable the SDC to perform the functions and tasks entrusted to it under the Securities Law. It is a comprehensive system for securities registration, deposit, clearance and settlement, and complies with applicable international standards. This system provides tools for risk management and clearance and settlement surveillance and has both off branches and support systems.

 

May 2004

Privatization lecture
In response to an invitation by the Fuhais and Mahes Branch Committee of the Engineers’ Association and Jordan Cement Factories Company, Mr. Jalil Tarif gave a lecture on “Privatization and capital markets”, where he fleshed out the concept and history of privatization and its impact on the global economy, the Jordanian economy and the capital market. Mr. Tarif reviewed the most prominent features of Jordan’s economic development and the importance of the ASE and its role in privatization, in terms of information, legislation and enabling environment that assist privatization. He elucidated the positive impact of privatization on the growth and depth of these markets and how they provide a broad base of domestic and foreign investors and a host of new investment opportunities. The lecture was attended by several heads of municipalities, members of the Jordan Engineer’s Association, and interested people.

April 2004

The Annual results of public shareholding companies
Out of the companies listed on the ASE in 2003, the annual reports and financial statements of those 75 that provided the ASE with such reports indicated that they made a net after-tax profit of JD247.9 million, namely a growth of 10.5% as compared to the previous year, and distributed JD95.9 million dividends, otherwise a 7.1% rise against 2002.

Annual conference of IOSCO
The 2004 annual conference of the International Organization of Securities Commission will be held in Amman on May 17- 20, under Royal patronage and the organization of the JSC in cooperation with the other capital market institutions. Representatives from more than 107 institutions from all over the world will be attending this event that His Majesty King Abdullah the II has so kindly accepted to patron. All capital market institutions have started to make early arrangements for this high-profile event in a manner that would be suitable to Jordan’s regional and international image. The program of work covers several parts; meetings of the working committees, the most important topics related to financial markets, as well as meetings of IOSCO’s executive committee, head of committees’ committee and others.
Every year, IOSCO holds a meeting and the choice of the hosting country is made by the Executive committee through a competitive bid submitted 3 years prior to the meeting, in order to give the country sufficient time to make the necessary arrangements for hosting all participants. The country making the bid to host submits an offer that elaborates the composition and developments of its capital market along with other information about the country itself, and the Committee takes a vote to select the winner.
Jordan, represented by the JSC, was awarded the bid to host the 2004 conference, during the IOSCO 2001 conference in Sweden, against Spain and Austria, and thus made the first Arab country to host this major international event.
IOSCO is an international body that comprises capital market supervisors as members, some stock exchanges and depositories as affiliate members, and the World Bank and the IMF and some various financial and monetary institutions as associate members. It is based in Madrid, Spain and has 107 regular members, 64 affiliate members and 10 associate members. It deals with all issues related to capital market supervision, the securities’ industry, particularly laws and regulations governing securities issuance and dealing, disclosure and surveillance. Through cooperation, it seeks to draft standards for enhancing capital market efficiency, exchange of information and expertise to develop financial markets, and works on consolidating efforts to create effective supervision and to enhance security market independence. It is to be noted that the ASE, by joining IOSCO as an associate member, has become the first Arab stock exchange to join this international body.

New Disclosure Regulations
The JSC Board of Commissioners issued the Regulations for Issuer Disclosure, Accounting Procedures and Audit Standards, and they went into effect as of March 1st, 2004 in lieu of the previous disclosure regulations. Amendments brought by the new regulations reflect changes in this field as well as changes introduced by the Securities Law No. 76 of the year 2002, which became enforceable as of the beginning of 2003, in addition to JSC experience in this respect. Some of the most prominent amendments included repealing the old pre-disclosure principle related to public shareholding Board members who have more than 1% of the company’s capital, and its replacement by a disclosure within one week following any change in the ownership of these members and insiders in general. The purpose of that was to facilitate trading and eliminate any restrictions or obstacles to fair trading among security dealers.
The new regulations also identified those who are considered as “de facto insiders” in public share holding companies, on the basis of the new Law which identified them as executive board heads, executive board members and general managers.

Capital market delegation visits Syria
A delegation from the capital market institutions including the chairman and Executive Manager of the JSC and the Executive Manager of the ASE, went on an official visit to Syria, where they met with the Minister of Finance, the Assistant Minister of Economy, the Governor of the Central Bank of Syria, the head of the Chamber of Commerce of Syria and a number of officials from both the private and public sectors. The Syrian party expressed its appreciation of the latest developments of the Jordanian capital market and indicated its wish to tap into the Jordanian experience in this field. The Jordanian delegation extended an invitation to the Syrian counterparts to attend the forthcoming IOSCO conference to be held in May in Amman.

SDC 5th GA
The SDC held its fifth General Assembly meeting, which discussed its annual report on SDC achievements in 2003, its future plans and last year’s financial statements.

Updating SDC website 
The SDC launched its updated website, which came in response to changes that are taking place and that the SDC intends to implement. The website now has new services such as account opening, balance statements and other forms for various movements. It has 16 types of SDC beneficiaries and services.

 

March 2004

European Community delegation visits the capital market
A delegation from the European Community composed of ambassadors from Spain, France, Germany, Austria, the Netherlands, Belgium and the Czech Republic visited the Jordanian capital market and were received by Dr. Bassam Saket, chairman of the Jordan Securities Commission (JSC), the commissioners of the JSC Board, as well as Mr. Jalil Tarif and Mr. Samir Jaradat, the Executive managers of the ASE and the Securities Depository Center (SDC) respectively. Dr. Saket briefed the delegation on the role of the JSC as a sovereign supervisor and regulator of the capital market given its financial and administrative independence. He went over the latest legislative, regulatory and technical developments that have enhanced domestic and foreign investor confidence, and underscored the importance of European investments for the Jordanian capital market that offers unrestricted investment, no foreign ownership ceilings and high safety and return. Mr. Tarif, in turn, made a short presentation on legislative and technical procedures adopted by the ASE in the field of data dissemination and boosting confidence in investment in securities, as well as market performance in 2003, while Mr. Jaradat highlighted the most salient achievements of the SDC in 2003.

Silver Jubilee of the Egyptian Capital Market Authority
Dr. Saket and Mr. Tarif represented the JSC and the ASE at the Silver Jubilee Ceremony arranged by the General Assembly of the Egyptian Capital Market Authority. During their meetings with the Egyptian financial sector senior personalities, they invited them to take part in the IOSCO annual meetings that are to take place in Amman next May. The Egyptian Prime Minister Mr. Atef Obeid offered Dr. Saket an award from the Egyptian Republic in appreciation of the JSC endeavors to develop the Jordanian capital market along with international standards and promote closer links between the Egyptian and Jordanian Commissions and capital market institutions and cooperation between the two countries. Along the sidelines, a Memorandum of Understanding was signed between the JSC and its Egyptian counterpart to affirm cooperation in the field of capital market institutions, the exchange of information and consultations on how to develop performance and compliance with securities laws and legislations in both countries. The MoU was signed by Dr. Saket for the Jordanian side and Mr. Abdel-Hamid Ibrahim, head of the Egyptian Capital Market Authority.

The SDC Internal By-Law of the Settlement Guarantee Fund for the Year 2004‏ 
The JSC Board of Commissioners approved the setting up of The SDC Internal By-Law of the Settlement Guarantee Fund for the Year 2004, which shall guarantee the settlement of market trading transactions on a delivery-versus-payment basis. This maintains trading safety and settlement. The Fund is a financially autonomous body corporate that aims at covering the illiquid positions of both selling and buying Fund members that result from security trading. Fund membership is made of brokers that deal on the ASE.

Financial Markets Forum
Mr. Nader Azar, the Assistant to the Executive Manager, represented the ASE at the Financial Markets Forum for the Development of the Bond Market in Jordan organized by the Association of Banks in Jordan and the AMIR program, and financed by the USAID. More than 75 participants from senior management of more than 30 financial corporations in Jordan, including the Central Bank of Jordan, the Ministry of Finance, the Investment Unit in the Social Security Corporation, Jordanian banks and the Insurance Commission attended the meeting and debated the underlying reasons for Jordan’s weak bonds market. They made several proposals to develop and activate this market to issue more fixed income primary and secondary instruments. In order to do so, independent credit rating agencies would have to be set up, the government’s bond market would have to be developed and new legislative amendments would have to be adopted to allow for the use of all types of assets and liabilities as guarantees for bond owners. The introduction of such guaranteed bonds in Jordan will lead to a variety and multiplication of fixed income instruments available, and to an amendment of regulations governing prospectuses to leave the pricing of interest on issues open to immediate supply and demand from issuance leaders. These initiatives will diversify and attract more investors, particularly individuals. Another proposal was to establish a Credit Corporation with the help of the Banking Association in Jordan, and to set up an IPO system for government issuance brokers.

Kuala Lumpur Stock Exchange converts to public company limited by shares
The Kuala Lumpur Stock Exchange completed its conversion into a public company limited by shares from a company limited by guarantee on 5 January 2004. With the conversion, the existing Stock Exchange will transfer its exchange business to a new wholly-owned subsidiary whilst the demutualized Kuala Lumpur Stock Exchange will become the Exchange Holding Company. In the interim period, the Holding company will be known as Kuala Lumpur Stock Exchange Berhad (KLSE Bhd) whilst the operating stock exchange will be known as Malaysia Securities Exchange Berhad (MSEB). These names will subsist until the new name for the Exchange Group is announced. According to this conversion, the Kuala Lumpur Stock Exchange will undertake the issuance of new rules of MSEB and the amendments to the listing requirements. The shareholding structure of KLSE Bhd will be owned by Capital Market Development Fund, the Minister of Finance, and licensed member Companies who will hold 30% for each party and the remaining 10% will be hold by ,independent dealers not brokers, Remisiers.

 

February 2004

SDC Regulations for Financial Returns
Following its adoption by the JSC, the SDC Regulations for Financial Returns was formally issued by the SDC and entered into force as of the beginning of this month. The SDC financial returns are composed of annual association and membership fees, registration fees of government bills and public corporation and municipality bonds, corporation bonds, and shares and investment units issued by closed investment funds.
They also include fees for services provided by the SDC, trading and transfer of ownership commissions, fines imposed on members and issuers of securities, any other commissions set out in agreements concluded with the SDC, and any other returns determined by the board.
The SDC charges one membership fees of 5 JD per ten thousand dinars of subscribed capital, with one thousand as a minimum and five thousand as a maximum, and the member whose membership expires shall not pay any additional charges for resumption of membership.
These Regulations keeps pace with the SDC path of progress and aims at bolstering investor confidence in securities and enables them to follow up on their investments very easily. They limit the risks attached to marketing tradings executed on the ASE through the enactment of regulations and legislations and fair, swift and secure procedures.

 

January 2004

The Annual Meeting of the Union of Arab Stock Exchanges
The Chairman and Executive Manager of the ASE, Mr. Mohammed Saleh Horani and Mr. Jalil Tarif respectively, took part in the Twenty-Fifth Session of the Union of Arab Stock Exchanges held in Kuwait in December 2003. Mr. Tarif laid out the most significant developments witnessed by the ASE during 2003 and its future prospects. The meeting approved the budget of 2002 and estimated budgets of 2003 and 2004. The members discussed the projected unified Arab stock exchange and the related developments, and the trading, settlement and clearance system of said project was presented. Agreement was reached to start implementation and to launch its marketing campaign. On the sidelines, one of the brokerage firms operating on the Kuwait stock Exchange inaugurated its Internet trading system, which is a one-of-a- kind in the Arab capital markets, to be carefully studied by brokerage firms on the ASE with a view to emulating it.