JORDAN: Response from ASE on regulation of Jordan short selling

Thursday July 17 2014

In a response to a query on the relevant legislation regulating Jordan short selling, the Amman Stock Exchange (ASE) has replied as follows:

“Short selling is not permitted at the ASE as you mentioned in your email, according the legislations of the Jordan Securities Commission (JSC) and the Jordan Securities and Depositary Center (SDC) as follows:-

• Article 14 of The Instructions Of financial Services Licensing and Registration stipulates that:

“The broker shall not sell securities before ensuring its title, and that they are not subject to any attachment, pledge, or restrictions on the transfer”.

• Article 54-B of The Instructions Of Registration, Deposit and Settlement Of Securities stipulates that:

“The Broker, before entering any selling orders on behalf of a client into the Trading System, shall make certain that there are sufficient securities in the client’s Account under the Broker’s control and that these securities are not subject to any pledge, lien or any other ownership restriction that prevents their unrestricted disposal”.