During this stage, the SDC deposited and implemented the basis of Delivery versus Payment, where delivery of sold securities is against payment of funds.

After the SDC was provided with a copy of the shareholders' registers by public shareholding companies in accordance with certain specifications and after these registers were subject to the inspections and cleansing process by the SDC, the SDC fulfilled the measures for transferring the shareholders' registers of public shareholding companies and the depositing of the authenticated part of those registers as of 31/12/2004 in accordance with the decisions of the JSC Board of Commissioners and the SDC Board of Directors.

The registers' depositing process was conducted in accordance with specific measures to guarantee the rights of all concerned parties and in two stages. In the first stage, public shareholding companies were provided with copies of their shareholders' registers and were required to check and audit the data and information contained in those registers. In the second stage, the companies were provided with the final registers as of 31/12/2004, containing the deposited and non-deposited registers. Only authenticated shareholders whose information matched the SDC database were deposited at the SDC. The shareholder registry has been divided into a deposited registry, that is the responsibility of the SDC, so that the center’s records are legal evidence of ownership of the deposited securities in accordance with the provisions of the Securities Law, and an undeposited registry that is the responsibility of the public joint stock company so that companies work to complete the procedures for depositing undeposited securities and provide the SDC with the necessary information and data.

Beginning on September 1, 2003, brokers began transferring client securities to a broker-maintained client account before any trade would be executed, thus enabling the broker to confirm that the client owns sufficient shares to execute the trade.

 

Clearing Settlement

On January 2, 2005, the SDC implemented the final stage of clearing and settlement on the basis of Delivery versus Payment. This principle is considered an important international standard applied in capital markets where delivery of sold securities is against payment of funds. Financial settlements between brokers are conducted through the SDC by money transfers from the brokers' accounts to SDC Settlement Account at the Settlement Bank. Consequently, the SDC transfers these funds to the brokers who should receive funds. The Central Bank of Jordan was chosen as the Settlement Bank.