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, as one of the three Capital Market Institutions that were created to achieve the separation between the executive and supervisory authorities, to comply with the International standards and best practices.
The SDC commenced operations in May 1999, assuming the responsibilities entrusted to it by the law, being the Registrar and Depository as well as the Clearing and Settlement entity in Jordan for the equities traded in the exchange.
The SDC oversees the main following core operations:
• The Registration, Depositing and Safekeeping of securities, as the SDC holds the share books of the issuers via book entry in demetralized form, and since Jan. 2005 the records of the SDC constituted the legal evidence of the ownership. The SDC executes corporate actions related to capitals of public shareholding companies such as decreases and increases of capital, mergers, acquisitions, stock split and share distributions, in addition to effecting attachments and ownership restrictions to the registers duly.
• The Clearing and Settlement, as the SDC handles the clearing and settlement for the traded securities on the exchange through the delivery versus payment method. The SDC follows the Bank of International Settlement’s model 2 for settlement, where it effects gross settlement of securities transfers followed by net settlement of funds transfers. The settlement cycle adopted in the Jordanian capital market is T+2.
• The SDC also handles the identifications of investors on the SDC database either directly or through its members of brokers and custodians, by issuing a unique number for each investor and allows for account opening in accordance with the structure adopted for this purpose.
In performing its tasks and operations, the SDC relies on its electronic system, SCORPIO® (Securities Central Operation Registry Processing & Information Online). This is an SDC-designed system that allows it to undertake technical, strategic, and administrative initiatives to build and strengthen its infrastructure, implement and achieve its tasks and responsibilities.
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 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 numbering scheme.
Within its initiatives to enhance transparency, the SDC publishes all the information that matters to investors through its website on the Internet (www.sdc.com.jo). This information includes electronic services, names of the board members and representatives, ownership and trading of the public shareholding companies’ board of directors members, shareholders who own significant percentages of the shares in companies, trading of members of the boards of directors of those companies and representatives of legal members, financial ratios, statistical data and corporate actions.
In the coming years, the SDC plans to:
• Develop and launch the advanced tier of investors related services such as the e-portfolio, SMS services, to enable investors to follow their portfolios and transactions executed to it with ease.
• Develop and introduce the mechanism of lending and borrowing and short selling.
• Provide dividends and entitlements distribution on behalf of the Issuers.
• Develop a new enriched and advanced website.
• Implement all strategic initiatives included in the Capital Market Development Report, by the EBRD, related to the SDC assignments.