Financial Settlement for Block Trades Executed at the Amman Stock Exchange
Ref. : 4443/2024
Date: 27/05/2024
Memo No.
(2024/24)
Members of SDC of Brokers and Custodians
Dear General Manager,
Subject: Financial Settlement for Block Trades Executed at the Amman Stock Exchange
Greetings,
Within the SDC’s endeavor to develop its operations and services and continue to achieve its goals in enhancing investor confidence and reducing the risks associated with settling securities prices based on international standards and best practices based on the principle of (DvP) in accordance with the provisions of Article (90) of the Instructions for Registration, Deposit and Settlement of Securities for the year 2017, which stipulates the following:
- As of the date determined by the Center, the Center shall carry out Financial Settlements for all Block Trades executed in the Market unless the two selling and Buying Brokers agreed prior to execution to settle the Block Trade directly between them without the intervention of the Center and without holding the Center responsible thereto.
- Notwithstanding the provisions of Article (51) of these instructions, the Settlement Day for all Block Trades shall be on the Same trade Day (T+0).
We would like to inform you that the SDC has completed the development of the settlement cycle to include the block trades in the financial settlements carried out by the SDC, whereby the SDC will execute the transfer the ownership of securities related to block trades on the same trading day (T+0) between the relevant accounts and at the same time upon the completing of its financial settlement, such involvement of the SDC will take place when the related executing Brokers agree to carry out the related settlement through the SDC in accordance with the technical and procedural controls associated with these operations.
Therefore and prior to determining the effective date for implementation we would like to invite you to workshop that will be held on the 5th of June 2024 located at 2:00 p.m. in the hall of His Majesty King Abdullah II, in the Capital market building for the purpose of informing you about the project and reviewing the work mechanism under which the financial settlements of our block trades will be implemented and the procedural and technical aspects of this project.
Therefore, we kindly ask you to nominate your representatives to participate in this workshop no later than Monday 03/06/2024.
For inquiries, you can call (5672788) ext. 2431 or 2432.
Kind Regards,
Sarah Tarawneh
Chief Executive Officer
