Settlement Guarantee Fund

التاريخ
Ref. : 8/9/10632
Date: 25/11/2004

Memo No.
(14/2004)

Brokers, Members of the Securities Depository Center

Subject: Settlement Guarantee Fund
 
We would like to inform you that the Jordan Securities Commission’s Board of Commissioners has decided to enforce the Internal By-Law of the Settlement Guarantee Fund for the Year 2004 as of December 31, 2004 after incorporating certain amendments to the Internal By-Law of the Fund according to the following:
   
1. The addition of a new paragraph (D) to Article (3) as follows:
The Fund shall be the legal and factual successor of the Financial Brokers’ Guarantee Fund, whereby all the latter’s rights, obligations, assets, records and moneys shall devolve upon the Fund.
2. The amendment of paragraph (B) of Article (8) as follows:
The cash contribution that the Broker should pay to the Fund shall be calculated on the basis of the net amounts due to be paid by the Broker in favour of the settlement as a result of trading in securities through the Market for the last three months subject to the amount not being less than the broker's net contribution in the Financial Broker's Guarantee Fund or (25,000) twenty five thousand Dinars whichever is higher………….etc.”

And in accordance with the decision of the Board of Commissioners referred to above and the decision of the Board of Directors, the Internal By-Law of the Settlement Guarantee Fund will be enforced starting December 31, 2004 according to the following procedures:
   
First:  The procedures that will be applied during the first week of December 2004:
  ● Request all brokers, to provide the bank guarantee in the required form in the amount specified in accordance with the formula mentioned in Paragraph (A) of Article (8) of the Internal By-Law of the Settlement Guarantee Fund for the period from December 1, 2003 till November 30, 2004 subject to the bank guarantee being submitted by December 31, 2004 at the most.
  ● Each operative broker shall be provided with the SDC’s Settlement Account No. at the Settlement Bank.
  ● Each operative broker shall be provided with the required information and data to be included in the bank transfers issued by the broker’s bank to the SDC Settlement Account (SWIFT Message Type MT 202).
Second: The procedures that will be applied during the first week of January 2005:
  ● Request that all brokers pay the cash contribution to the Settlement Guarantee Fund which is calculated in accordance with the formula specified in Paragraph (B) of Article (8) of the Internal By-Law of the Settlement Guarantee Fund for the period from December 1, 2004 till December 31, 2004 subject to the bank guarantee being paid within 3 days of the claim.

We would also like to remind you that it is important to provide the SDC with your bank account number assigned for the purposes of receipt and payment of the value of securities and the required acknowledgement guarantee form as soon as possible.

Thank you for your cooperation for the benefit of the Jordan capital market.

Samir Jaradat

Chief Executive Officer
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