In its annual meeting held on Thursday March 31, 2005, the Securities Depository Center (SDC)’s general assembly discussed the SDC’s fifth annual report which contains the chairman’s statement, the SDC’s most important accomplishments and achievement during 2004, its future plan; in addition to the financial statements and the auditors report. The SDC’s general assembly consists of public shareholding companies, brokers and custodians.

In his statement, the chairman, Mr. Loay Mismar, indicated that 2004 was full of accomplishments and achievements and referred to the positive role of the SDC’s members especially public shareholding companies and the brokers through their effective cooperation which had a big effect in accomplishing the SDC’s goals. The SDC completed the final stage of development by depositing authenticated shares. In addition, Delivery versus Payment (DvP) has been adopted which is considered an important international standard.

The SDC’s Chief Executive Officer, Mr. Samir Jaradat, highlighted the SDC’s accomplishments during 2004.The SDC transferred the shareholders’ registers of public shareholding companies and deposited the authenticated part of those registers at the SDC’s as of December 31, 2004. The shareholders’ register was divided into the deposited register under the SDC’s jurisdiction, where the SDC’s records and registers are considered the legal proof of ownership of deposited shares and the non-deposited register under the jurisdiction of public shareholding companies until its deposit at the SDC. After the deposit of securities, all ownership certificates of shares were deemed cancelled where (163,359) shareholders were deposited at the SDC representing (32%) of the total number of shareholders. These deposited shareholders own a total value of (JOD 12) billion.

In 2004, the SDC signed an agreement with the Central Bank of Jordan (CBJ) whereby the CBJ was chosen the settlement bank through which cash payments resulting from securities trading will be settled via the “RTGS-JO”. The SDC started since the beginning of this year to implement clearing and settlement measures for trading contracts executed in the Amman Stock Exchange on the basis of DvP.

In 2004, the SDC continued to place and release pledges and liens upon notification by public shareholding companies. The SDC executed a total of (5,898) pledge and lien, and release of pledge and lien. The SDC, also provided the service of “freezing securities” where the shareholder may freeze his securities in the SDC’s central registry, thus preventing any SDC’s member from transferring these securities or performing any transaction.

In addition, the SDC developed in Local and Wide Area Network and provided technical support for its members to ensure safety where the number of members that have access to the SDC’s network reached (140) members.

The SDC has developed and updated its website www.sdc.com.jo to fulfill the needs of its members and investors to follow up and view the latest developments in the Jordan capital market.

In the line of legislations, the SDC during 2004 issued, with the approval of the Jordan Securities Commissions, by-laws and instructions in accordance with the requirements of this stage.

The annual report also included the SDC’s future plan. The SDC will provide a valuable service to investors that will enable them to access their securities’ accounts and view their securities ownership balances through the SDC’s website on the internet. Each investor will be given a password by the SDC to access this site.

The SDC’s website on the internet will be updated to provide information and new services in the capital market in general and the SDC in specific. The SDC will maintain the registers of the owners of bonds and corporate bonds and subjecting these securities to the clearing and settlement measures to attract investors to this market in cooperation with the rest of the concerned parties in the Kingdom.