Settlement of Securities Prices Traded Bilaterally by the Local Broker in the Foreign Markets

Article (4)

1. Within five business days from the date on which the local broker is notified of the market’s approval of its intermarket registration to engage in intermarket trading activity in the foreign market pursuant to the agreement, the local broker must approach the Center to complete the following procedures:
   1. Providing the Center with the Jordan Securities Commission (JSC)’s approval to engage in intermarket trading activity in the foreign market.
   2. Determining the broker’s daily trading limit, provided that the value of such limit is not less than the amount specified by the Center for this purpose.
   3. Depositing a cash amount equivalent to the daily trading limit into the bank account designated by the Center for this purpose.
   4. Designating the bank account for the settlement and receipt of amounts arising from its intermarket trading activity in the foreign market.
   5. Submitting a written acknowledgment and undertaking, in a form acceptable to the Center, whereby the local broker undertakes to settle all obligations arising from its intermarket trading activity in the foreign market pursuant to the agreement, in accordance with the mechanism and deadlines specified by the Center for this purpose. The broker shall also acknowledge and grant the Center an irrevocable authorization to use the trading limit as a cash guarantee against the foreign market in the event of delay or failure by the local broker to fulfill any of such obligations, within the limits of the trading cap, without the Center bearing any claims or liabilities exceeding that amount from any party.

2. The Center shall notify the JSC, the market, and the concerned local broker upon the completion of the procedures set forth in paragraph (A) of this article.

3. The market shall provide the Center with the date on which the local broker becomes entitled to commence intermarket trading activity in the foreign market.

Article (5)

1. Subject to the provisions of these instructions, the intermarket trading conducted by the local broker in the foreign market, as well as the mechanisms and procedures for settling the obligations related to the settlement of securities prices for trading contracts executed through the intermarket trading system, shall be governed by the rules and procedures applicable in the foreign market and those stipulated in the agreement.

2. The local broker shall be restricted in its intermarket trading activity in the foreign market to not exceed the daily trading limit assigned to it by the Center within the intermarket trading system pursuant to the provisions of Article (4/A/1) of these instructions.

3. The Center, upon the local broker's request, may increase or decrease the daily trading limit through the intermarket trading system, provided that the following conditions are met:
   1. Depositing the requested increase amount to the daily trading limit into the bank account designated by the Center for this purpose.
   2. The daily trading limit resulting from the reduction shall not be less than the amount specified by the Center for this purpose.

4. The Center shall request the foreign market to update the daily trading limit data of the local broker on the intermarket trading system and shall notify the market accordingly.

Article (6)

1. The Center shall open a bank account with any of the banks operating in the Kingdom to deposit and manage transactions related to the daily trading limits of the local brokers registered intermarket with the foreign market. This account shall be used for the receiving, payment, and settlement of obligations or rights related to the intermarket trading of these brokers in the foreign market.

2. The foreign market shall open a bank account with any of the banks operating in the Kingdom for the purposes of receiving amounts due to the foreign broker and settling the amounts payable by it resulting from the settlement of the prices of securities related to intermarket trading conducted by the local broker in the foreign market.

Article (7)

1. The amounts due to each local broker in respect of their bilateral trading in the foreign market shall be calculated on a daily basis based on the reports issued by the system, and the local broker shall be notified accordingly through this system.

2. The net amount due by each local broker shall be calculated by deducting the total value of their purchases from the net value of their sales of securities for each trading day, in addition to any taxes, commissions, fees, or other amounts incurred as a result thereof.

3. The local broker shall settle the net cash obligations arising from their bilateral trading in the foreign market by depositing the required amount into the bank account designated by the Center in accordance with Article (6/A) of these Instructions, no later than 9:30 a.m. local time on the following day. If that day falls on a weekend, official, or religious holiday in the Kingdom while being a trading day in the foreign market, the local broker must settle such obligations no later than 3:30 p.m. on the same day on which the settlement reports are issued through the bilateral trading system.

4. If the local broker delays or fails to settle any of the cash obligations arising from the settlement of its trades in the foreign market before the deadline specified in Paragraph (C) of this article, the Center may take the following measures:
   1. Request the foreign market to suspend the concerned local broker from engaging in trading in the foreign market as of the date of the delay or failure to settle, and notify the JSC and the market accordingly. The Center shall not be held liable for the settlement of any further obligations incurred by the relevant local broker as a result of any transactions carried out by it in the foreign market after the request for its suspension from trading has been made through the foreign market.
   2. Settle the obligations incurred by the concerned local broker within the time frame specified for this purpose under the agreement, by depositing the amounts into the foreign market’s designated bank account, up to the daily trading limit of the concerned local broker. The local broker shall be required to settle any amounts exceeding such limit, as applicable.

Article (8)

1. The Center shall transfer the net receipts of the cash obligations incurred by each local broker to the bank account designated by the foreign market in accordance with Article (6/B) of these Instructions, within the time frame specified for this purpose under the agreement.

2. The foreign market shall take the necessary measures to transfer the settlement amounts received from the Center, arising from the bilateral trading of each local broker in the foreign market, to the designated bank accounts of each foreign broker, within the timeframes specified by the foreign market for this purpose, without any intervention by the Center or any liability on its part.

Article (9)

1. The foreign market shall transfer the net amounts due to each local broker resulting from their intermarket trading in the foreign market to the bank account designated by the Center in accordance with Article (6/A) of these Instructions, and within the timeframes specified for this purpose under the Agreement.

2. The Center shall transfer the settlement amounts received from the foreign market pursuant to Paragraph (A) of this article to the designated bank account of each eligible local broker.

Article (10)

1. The Center’s liability towards the foreign market for fulfilling the obligations of the local broker arising from their intermarket trading in the foreign market shall be limited to the daily trading limit assigned to each local broker. Under no circumstances shall the Center bear any payment obligation to the foreign market exceeding the value of such limit.

2. The Center’s procedures related to the settlement of obligations incurred by the local broker as a result of their intermarket trading in the foreign market, and the use of the trading limit for this purpose, shall be carried out during the official business days and hours adopted by the Center.

3. If the Center’s payment obligation on the settlement date to the foreign market falls on a holiday for the Center but a business day for the foreign market, the Center’s payment obligation shall instead be due on the last official business day of the Center preceding the settlement date. Conversely, if the payment obligation falls on a holiday for the foreign market, the Center’s payment obligation shall be deferred to the first business day of the foreign market following such holiday.

4. The local broker shall have the right to recover their daily trading limit upon the cancellation of their intermarket registration with the foreign market for any reason, and after verification that all obligations arising from their intermarket trading have been fully settled.

Article (11)

1. The Center shall maintain the necessary records to document and record the data related to the daily trading limits of each local broker, the settlement amounts due from each local broker, and the amounts received or transferred by the Center to bank accounts pursuant to these Instructions in connection with their intermarket trading in the foreign market.

2. The currency adopted for the purpose of settling intermarket trading obligations by the local broker in the foreign market shall be the currency recognized by the foreign market under the Agreement. Such obligations shall be paid in Jordanian Dinars in accordance with the provisions of these Instructions, based on the daily exchange rates entered into the intermarket trading system, in addition to any applicable fees or commissions.