The SDC initiated its clearing and settlement system in July 2002 as a transitional step towards complete implementation of delivery-versus-payment (DVP). The clearing and settlement stage aimed to accelerate the process of validating Shareholders' Registers information, thus ensuring the highest possible accuracy levels in shareholder asset transfers. In addition, clearing and settlement enhance the levels of risk management in the Jordan Capital Market.

Securities Clearing

The SDC obtained Shareholders' Registers of public shareholding companies, including both traded and non-traded companies. These registers were updated daily according to the trades executed at the ASE and transfers conducted directly through the SDC. The SDC also updated ownership restrictions, such as lien and pledge restrictions, upon notification by public shareholding companies. All trades executed at the ASE were delivered to the SDC for securities clearing and matched to the SDC's Shareholders' Registers to ensure that:

• Shareholder does exist;
• Shareholder informationis authentic and complete
• Shareholder position contains sufficient, available shares to settle the trade;
• Pledges and/or liens against shareholder position will not prevent trade