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                In the name of Allah, the most Gracious, the most Merciful


                It is my pleasure to submit the Jordan Securities Commission (JSC) Annual Report, which includes a detailed overview of the capital market performance and the most prominent achievements of JSC throughout 2015. The (JSC) has exerted continuous efforts in this year to maintain the ongoing mandate for supporting and enhancing the Jordan economy, legislation environment, and the investment climate. The year 2015 has witnessed many achievements to promote the mandate of the JSC. These achievements came inline and consistent with the JSC strategic plan in the development of the capital market within the executive programs of the government framework to support and contribute to the achievement of national goals and of the Supreme Royal visions and initiatives aimed at promoting the domestic economy and its institutions in order to achieve the desired reform and comprehensive development process.

                In the area of the capital market legislation and regulation, the JSC has completed a draft amendment to the Securities Law, which has been discussed and ratified by the Economic and Investment Committee of the 17th Parliament Council after being approved by the Council of Ministers. The new draft Law aims to strengthen the regulatory role of the JSC, encourage creation of mutual funds and place the legal reference for regulating them. It also enhanced the legal framework to ensure rights of brokers when they finance their customers on the margin trading as they will have the eligibility and priority for fulfillment their rights in case of client's death, liquidation and booking. On the other hand, it was placed the legal reference to enable JSC to transform the voluntary rules of corporate governance into mandatory ones.

                JSC also completed the issuance of legislations regulating all life stages of the Islamic financing Sukuk to regulate the dealing process with this important instrument, in addition to the special purpose company instructions, thus completing of the legislations governing Islamic Sukuk has been done, and the capital market institutions became now ready to receive requests from the public and private sectors for issuing Islamic Sukuk. Currently, JSC is reviewing many applications for issuance Islamic Sukuk. It is hoped that Sukuk will contribute to the promotion of the securities market, attract investments and enhance efficiency, add to the depth and diversity of traded instruments, given their role in mobilizing national savings towards financing both private and public sector projects.

                Besides amending the Law, the JSC continued to promote its legislative structure through the issuance and amendment of a number of significant legislations aiming at developing the national capital market and protecting investors dealing in the capital market. The most important of them were: the Instructions of Shares Buy-Back by Public Shareholding Companies "treasury stocks", as well as the instructions for the Standards and Conditions Required for Qualified Auditors to audit the Entities that subject to JSC Supervision. Instructions on Anti-Money Laundering and Counter Terrorism Financing in the Securities Activities were updated. The JSC has also issued Instructions Regulating the Sale of Securities Resulting from the Implementation of Court's Orders and the Decisions of the Competent Authorities.
                Similarly, the JSC continued its supervisory role in the areas of issuance, trading, disclosure, licensing and registration, including carrying out financial and credit conditions analysis for financial services companies to mitigate any potential risks.

                In the area of developing the JSC's technological and electronic systems, a number of projects were carried out during 2015 including a system for tracking transactions and work procedures at various departments with a view to manage the flow of data and information. Furthermore, the Licensing and Inspection Department has worked electronically to enable the financial services companies and their authorized persons to renew their licenses through protected website. In order to enhance the infrastructure with speed and efficiency needed by the electronic systems and future projects, the JSC has replaced 40 computers in 2015 and another 40 will be replaced at later stages.

                In the area of Arab and International cooperation, the JSC has continued its presence and efforts at the Arab and International levels to serve its objectives and to be able to follow up with the developments affecting its mission in a manner that contributes to the promotion of the national capital market. JSC has continued its active role in the International Organization of Securities Commissions (IOSCO) and participated in its specialized meetings. It also participated in the activities of the Union of Arab Securities Authorities.

                In order to deepen and increase the awareness to work of capital market, JSC has received several student delegations and held a number of seminars and specialized training workshops, including training workshop in cooperation with the World Bank in the field money laundering and financing of terrorism, as well as the workshop entitled, “Chances of Sukuk in Jordan”, in cooperation with "Trowers and Hamlines". Besides to that, JSC held a workshop on the auditing standard number (701) in cooperation with the Jordan Association of Certified Public Accountants. JSC has also held a training course for qualifying and training brokers, where passing this course and the assigned exam constitutes a pre-requirement for the accreditation of natural persons.
                In an effort by the JSC to upgrade and develop the performance of the capital market in order to serve the objectives of the national economy, JSC is currently cooperating with the European Bank for Reconstruction and Development (EBRD) through a consulting firm entrusted by the Bank to implement a six – month project aiming at developing a roadmap for the development of the capital market in Jordan, namely, the "Implementation Roadmap to Develop the Capital Markets in Jordan".
                Pursuant to the Supreme Royal Directives to develop an integrated framework for economic and social policies within a ten-year economic blueprint in Jordan, the JSC has participated within the financial services sector team in developing a comprehensive perspective of the challenges and opportunities facing the sector in coordination with other economic sectors. This will enhance the investment environment and improve the sector's capacity to contain the repercussions of the global financial crises and regional political unrest.

                With respect to the performance of the Amman Stock Exchange (ASE), the total trading volume for 2015 reached JD 3.42 billion, compared with JD 2.26 billion in 2014, with an increase rate of 51%. The number of traded shares was 2.58 billion, carried out through 899 thousand contracts during 2015, compared to 2.32 billion shares in 2014, carried out through 956 thousand contracts, with an increase of 11% and 6% respectively. The stocks turnover rate, which reflects the number of traded shares compared to the total number of listed shares on the ASE, has also increased to 37.3% in 2015 compared to 32.8% in 2014.

                As for the weighted price index in the market - based on the value for free shares and includes the largest and most active 100 companies in the first and second markets - has witnessed a decline in 2015 at a rate of 1.39% compared to the previous year to close at 2136 points compared to 2166 in 2014. Meanwhile, the market capitalization weighted index has decreased by 0.19% to close at 4230 points.

                In conclusion, I would like to extend my thanks and appreciation to my colleagues, members of the Board of Commissioners and the staff of the JSC for their dedication and good efforts in upgrading the national capital market to be consistent with the latest international standards and practices so as to enhance confidence in the national economy, encourage investment and protect investors.
                May Almighty Allah protect the leader of the country, His Majesty King Abdullah II Bin Al Hussein and may Allah protect the Hashemite Kingdom of Jordan. Peace and Allah’s mercy and blessings would be upon you.


                Mohammed Saleh Hourani
                Executive Chairman





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