Date: 06/05/2005

Hotels & Tourism Magazine's Interview with Mr. Samir Jaradat

What is the main task of the Securities Depository Center (SDC)?
Jaradat: Our mission has been to build a central registry and a depository for securities owners and to conduct the clearance and settlement of trading contracts executed at the Amman Stock Exchange (ASE) through applying the Delivery Versus Payment principle. Our aim is to operate a system that is able to accommodate high trading and settlement volumes and will enable us to provide a transparent, fair and efficient securities market in Jordan that will inspire domestic and international investor confidence.

The SDC had to be developed in stages to enable it to accomplish its mission with out disrupting the operations of the market.
You can say we had to change the tyres while the car was moving.
The SDC meets its responsibilities through the use of integrated safe, secure and globally compliant electronic systems. The SDC’s efficient and cost-effective operation insures the highest levels of investor protection and transparency in the Jordan Capital Markets.

It has undertaken a number of initiatives, strategic and administrative, in order to build and strengthen its infrastructure, implement world-class systems and provide a safe trading environment for investors. Most noteworthy, are the development of the Registry, the establishment of the Depository and the launch of clearing and settlement.

In order to provide for the logical, orderly and practical provisions of Delivery versus Payment (DVP), a globally recognized mechanism that ensures good delivery of securities against final payment of funds, the SDC developed its operations in stages.

The SDC developed a system named the "Securities Central Operation Registry Processing & Information Online (SCORPIO)" system. SCORPIO, an SDC-designed and implemented system, is a bilingual system that is a complete solution for the registration, deposit and protection of shareholder assets. SCORPIO consists of a number of systems and modules for registration, depository, Clearing & Settlement and also provides mechanisms for the risk management and surveillance of Clearing & Settlement. Its modules include Brokers, Issuers, Custodian, JSC Surveillance and Auditing systems, which together enable the SDC to provide investors with a wide range of services.
SCORPIO complies with International Standards and Best Practice. It can communicate with all participants through the Wide Area Network (WAN) already in place in the Jordan Capital Market. In future it will be possible to link it with any trading system because of the system’s STP (Straight Through Processing) module. SCORPIO can also provide cash settlement in any currency.

What new services can we expect to see from the SDC in the future?
Jaradat: As part of its future plans, the SDC will introduce Bond Processing, Securities Lending and Borrowing, a new version of the Pledge and Lien System and will also connect to the Central Bank of Jordan’s Real Time Gross Settlement System (RTGS). Also, the SDC is designing smart card communication that will allow individual shareholders, both inside and outside Jordan, to view their holdings and the transactions carried out by their financial brokers. In the longer term, the SDC plans to offer market activity analysis, portfolio valuation and Mark-to-Market services.