Definitions and Scope of Application
Instructions for Regulating the Mechanism for Settlement of Securities Prices Traded Bilaterally under Bilateral Agreements with Foreign Financial Markets for the Year 2025, issued Pursuant to the Provisions of Article (81/a) of the Securities Law No. (18) of 2017
Definitions and Scope of Application
| Article (1) | These Instructions shall be called the (Instructions for Regulating the Mechanism for Settlement of Securities Prices Traded Bilaterally under Bilateral Agreements with Foreign Financial Markets for the Year 2025) and shall come into effect as of the date determined by the Board. | |||
| Article (2) | A- | The following words and expressions used in these Instructions shall have the meanings ascribed thereto hereunder unless the context indicates otherwise: | ||
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The Law |
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The Securities Law. |
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The Commission |
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The Securities Commission. |
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The Board |
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The Board of Commissioners of the Commission. |
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Center |
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The Securities Depository Center. |
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Board of Directors |
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The Center’s Board of Directors. |
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Chief Executive Officer |
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The Center’s Chief Executive Officer. |
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The Market/Stock Exchange |
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The Amman Stock Exchange or any Trading market in securities licensed by the Commission. |
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Foreign Market |
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Any organized market for trading securities outside the Kingdom, licensed by a regulatory authority that is a member of the International Organization of Securities Commissions (IOSCO). For the purposes of these instructions, the term "foreign market" shall also include the entity responsible for settling the prices of securities traded on that foreign market, if such an entity exists and as the case may require. |
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Local Broker |
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The judicial person licensed by the Commission as a financial broker or dealer. |
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Foreign Broker |
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The company licensed to conduct financial brokerage activities in the foreign market. |
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| Agreement | : | Any bilateral agreement concluded by the Market and the Center, with the approval of the Board, with the Foreign Market, for the purpose of regulating the mechanism of bilateral trading by local and foreign brokers in securities registered with the Host Market, and for the execution of ownership transfers and the financial settlements related to such trading. | ||
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Bilateral Registration |
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The registration of the local broker or the foreign broker through the bilateral trading system for the purpose of engaging in bilateral trading in the host market, in accordance with the provisions of the Agreement. |
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Bilateral Trading |
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The sale or purchase of securities in the host market through the intermarket trading system. |
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Bilateral Trading System |
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The electronic trading system implemented pursuant to the agreement, which enables the entry of buy or sell orders for securities by the local broker or the foreign broker, as applicable, and the direct execution of such orders within the electronic trading system approved by the host market. |
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Host Market |
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The market or the foreign market, as the case may be, to which the local broker or foreign broker submits an application for registration for intermarket trading on securities registered therein, originating from the other market. |
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| Daily Trading Cap | : | The upper limit allowed for the daily net purchases by the local broker or the foreign broker in the host market. | ||
| Net Purchases | : | The total value of buy orders entered into the intermarket trading system, minus the total value of sell orders executed in the intermarket trading system. | ||
| B- | The words and expressions not defined in these Instructions shall have the meanings assigned to them in the Law, Regulations and Instructions issued accordingly. | |||
| Article (3) | These instructions regulate the provisions, requirements, and procedures for the settlement of the prices of securities traded in the host market pursuant to the agreement, as well as all regulatory matters related to defining the obligations of intermarket trading participants, including local and foreign brokers, and the regulatory framework governing the relationship between the Center and the foreign market for this purpose. | |||
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