Date: 23/10/2000

The first day of implementing electronic deeds proved to be a triumph for the Securities Depository Center (SDC). On Sunday, October 22, 2000, 538 deeds were issued by the SDC. In addition, the electronic deeds have shortened the clearing time of a stock by one day and all brokers have completed their financial settlements on time.

With the new system, brokers enter the information about their clients in an electronic databank, before trading on the Amman Stock Exchange (ASE). Once the information has been entered, the client is assigned a number that identifies him. By using numbers instead of names, the electronic deeds allow transactions to be made confidentially. At the end of the day, once the SDC obtains the daily report of transactions from the ASE, they issue the electronic deed that contains all of the necessary information. The SDC will then deliver the contract to the issuers to ensure that the ownership is authentic.

“Electronic deeds replaced the contracts that were previously done manually, reducing the possibility of human error and create a safer trading environment,” stated Samir Jaradat, Chief Executive Officer of the Securities Depository Center.

The Securities Depository Center was created in 1999 as part of the restructuring process of Jordan's capital market. The SDC is a private, non-profit institution that oversees the settlement and transfer of the ownership of securities. The registration includes client identification to ensure accurate records are maintained. In addition, electronic deeds are issued. These deeds contain all of the details regarding the transactions.

During the first year of operation, the SDC has simplified the processes of transferring the ownership of stocks. This procedure has established a reputation, both internationally and locally, as a safe and effective method for trading stocks. As well as, created public and investor confidence in Jordan's capital market. This restructuring process has ensured the Jordanian clearance and settlement system operates with maximum efficiency and minimum risk.