Securities Depository Center

 
 
 
 
 
 
 
 
 
The Securities Depository Center of Jordan (SDC) is a public utility institution established in the Hashemite Kingdom of Jordan by virtue of the Securities Law. The SDC was established and commenced operation in May 1999 and is the only entity in Jordan that is legally empowered to oversee the registration of securities, deposit of securities, transfer of ownership, safekeeping of securities and clearing and settlement of securities transactions. The SDC is subject to the Jordan Securities Commission (JSC)’s monitoring and supervision.
 
The SDC’s governance structure consists of a seven member board of directors and a full time Chief Executive Officer. Four of the board members are elected by the general assembly of the SDC representing SDC members, whilst three of the board members are appointed by the JSC.
 
The SDC’s ability to perform its tasks, accomplish new projects, and meet market demand and new developments comes from the SDC’s electronic system SCORPIO® (Securities Central Operation Registry Processing & Information Online) which is an SDC-designed system that allows the SDC to undertake technical, strategic and administrative initiatives to build and strengthen its infrastructure, implement and achieve its tasks and responsibilities.
 
As of the beginning of the year 2017, the SDC continued to work to achieve the projects within its strategic plan for the future. The SDC implemented one of the main projects which was the newly developed Settlement Cycle to introduce the custodians to the settlement that allows them to settle the trades of their clients directly with the SDC on a delivery-versus-payment (DvP) basis. This principle is considered an important international standard applied in capital markets where delivery of sold securities is against payment of funds. Accordingly, the SDC issued new 2017 legislations.
 
The SDC has been recognized by the Association of National Numbering Agencies (ANNA) and the JSC as the sole numbering agency in Jordan for the assignment of codes adopted by ANNA regarding the financial instruments including International Security Identification Numbers (ISIN), Classification of Financial Instruments (CFI), and Financial Instrument Short Name (FISN). All securities registered at the SDC are numbered according to each code’s numbering scheme.
 
Based on the SDC continuously seeking to enhance transparency and disclosure, it provides a lot of information through its website in a timely, accurate and updated manner such as board members’ names,
holdings and trades, major shareholders, financial figures and statistical data. The SDC also provides a variety of electronic services.
 
In the coming years, the SDC plans to:
• Introduce value added services to the investors (SMS services and online account viewing).
• Introduce DvP Settlement for block trades.
• Set the legal and technical framework to introduce the Depository Receipts and Lending and Borrowing.
• Update the SDC’s electronic system to the latest version of Oracle Technologies and to make it web-enabled.
• Implement the plans included in the Capital Market Development Report made by the EBRD related to the SDC assignments.