Draft Project of the Instructions of Trading of Members of the Board of Directors of Financial Brokerage Companies & Related Parties

To achieve the goals of Jordan Securities Commission (JSC) to protect investors in Jordan capital market & to implement merely the ‘Bases of Cash &/or Margin Finance’ by Financial Brokerage Companies while dealing with their clients, the Commission made a Draft Project of the “Instructions of Trading of Members of the Board of Directors of Financial Brokerage Companies & Related Parties”.

The (JSC) proposes this Draft Project to all concerned parties in Jordan capital market including, brokers, investors, auditors & others, to state their opinions on the suggested “Instructions” within two weeks from the date of being disseminated. The Commission wishes to be acquainted with their opinions & suggestions to benefit from these prior to being finalized.

The underneath “Instructions” are merely a “Draft Project” that may be altered & amended as deemed proper for public interest, nor is any part of it is final yet. 

Kindly send your views & opinions to the following addresses:
Email: info@jsc.gov.jo.
Fax: 5682615.

Draft Project of the Instructions of Trading of Members of the Board of Directors of Financial Brokerage Companies & Related Parties


First: Financial Brokerage Companies shall comply with implementing the ‘Bases of Cash &/or Margin Finance’ exclusively for trading purposes in the market, while dealing with their underneath stated clients:
1. Members of the Board of Directors/ Board of Executives of a Financial Brokerage Company.
2. Members of the Board of Directors/ Board of Executives of any Subsidiary or Affiliate or Parent Company of a Financial Brokerage Company.
3. Subsidiary, Affiliate & Parent Companies of a Financial Brokerage Company.
4. Employees of Companies referred to in Items (1, 2 & 3) above.
5. Saving Funds of employees of companies referred to in Items (1, 2 & 3) above.
6. Relatives of Natural Persons referred to in Items (1, 2, 3 & 4) above.
7. People owing (5%) or more of the capital of a Brokerage Company or any companies referred to in Item (3) above.
8. A. Any company that people referred to (from 1 to 6) above, own jointly or separately (20%) or more.
B. Members of the Board of Directors/ Board of Executives, employees of any company & relatives of Natural Persons, that Item (8/A) above is applicable to them. 
9. Companies controlled by Members of the Board of Directors/ Board of Executives, employees & their relatives.
Second: Every Financial Brokerage Company shall provide the Commission with information relevant to people referred to in Item (First) above of company clients & those having trades with it, within a maximum of one week. They shall also, provide the Commission promptly with any occurring amendment to information.
Third: For the purpose of implementing this decision, the following definitions shall be applied:
• Member of the Board of Directors: Member of the Board of Directors in his own capacity or representing a legal entity & the legal entity he represents.
• Affiliate Company: a company substantially influencing another company or is substantially being influenced by another company or sharing with it being substantially influenced by another company.  
• Subsidiary Company: a company owned by another company of (50%) or more of its capital &/or is controlled by it.  
• Employees of Company: the General Manager & all employees regardless of their ranks. 
• Relatives: father, mother, father in law, mother in law, brother, sister & children.
• Person: a natural & a legal person.
• Control: the direct capacity to influence effectively, the actions & decisions of another person.
Fourth: The Commission stresses on the following:

1. Trading on the ‘Base of Cash’ requires in advance cash deposit in the client account in a Brokerage Company, equivalent to the value of securities intended to be purchased prior to executing the purchase process.
2. A Financial Brokerage Company shall comply with not to conduct any trade for any client referred to in this decision, unless his account has the required cash limit.