FAQs

There are 244 companies listed on the Amman Stock Exchange (ASE) by the end of 2016. The market capitalization of subscribed shares is currently around JD 17.3 billion, as compared to around JD 286 million by the end of 1978. At the end of 2017, the traded volume was JD 5,897,403,493 billion.

There is only one securities exchange in Jordan, the ASE. For trading in shares, (the new Securities Law No 76 for 2002 allowed the establishing of more than one securities market in the Kingdom), the market is organized into the First Market and the Second Market - on which listed securities are traded. There is also a Bond Market and a nascent mutual funds sector.

Most securities trading is in equities. Currently, trading in Jordanian equity stocks on the First and Second Markets can be broken down as follows: banking stocks (28%), insurance (2%), services (24%) and industry (46%).

A number of debt securities are also listed on the ASE. In the public sector, Treasury Bonds are listed, with maturities of between three and seven years. No Treasury Bills are currently listed, although a number have been in the past. In addition, Development Bonds issued by the Central Bank, and "Public Entities" Bonds, issued by entities such as the Water Authority are also quoted on the ASE. All these bonds are guaranteed by the Government. Some bonds issued by private sector corporations are also traded.

Yes there are a limited number of Jordanian GDRs. For example there is a GDR for Arab Potash Company listed in London.

The ASE publishes weighted and un-weighted price indices, a daily report showing the performance of each security, daily and weekly statistics for each market sector and a monthly statistical bulletin.

Jordan is within the Middle East time zone which is two hours ahead of GMT in winter and three hours ahead in summer. The ASE's trading hours are Sunday to Thursday (inclusive), 10 am to 12 noon, except for public holidays.

The ASE was formed under the authority of the Securities Law of 1997 to operate and develop the securities exchange in Jordan. In this respect, the ASE took over operation of the twenty-year old Amman Financial Market. Although formed under statute, the ASE is a privately managed body whose members are licensed financial brokers. Aside from the Securities Law, its key constitutional document is its By-laws. The ASE is governed by a seven member Board of Directors, four of whom are elected by the membership of the Exchange from their number. The remaining three Board members are appointed by the Jordan Securities Commission (JSC). Day-to-day management of the Exchange is performed by a Chief Executive Officer (CEO) who reports to the Board

There are 94 brokerage firms which are members of the ASE. Some are, or are affiliated to, major Jordanian banks whilst others are independent. Investors include Jordanian citizens, both at home and abroad, and Jordanian and international institutional investors. Jordan has a strong tradition of retail investment in shares.

Trading on the ASE takes place on an automated, order-driven system. Brokers trade on the system remotely (from their offices) or use trading screens located in the ASE headquarters.

Trading takes place on a continuous basis for quoted bonds and equity stocks traded on the First and Second Markets. Brokers enter buy and sell orders into the trading system. The system then matches those orders to produce a trade.

Internet Trading Service is a service provided by the brokerage firm to its customers, enabling them to trade in securities by entering buy and sell orders to the electronic trading system for themselves through the use of the Internet.

Once an order is executed by the trading system, the system output allows the brokers to be identified to each other. Each broker, however, will not know whether the counterparty on the other side of the trade is a client or the broker acting for its own account. The identity of the client is not disclosed.

Foreign investors may trade through a member firm of the ASE. Contact details for all members are available on the ASE's website (www.ase.com). Account opening procedures will vary from broker to broker but will normally involve entry into a written agreement between broker and client.

Orders may be placed only by ASE member firms, which must be licensed by the JSC to conduct financial brokerage activities. There is no direct access to the ASE system for non-members.

Applicants for a financial brokerage license must:
- be a public shareholding company, a limited liability company, or a limited partnership-in-shares company incorporated in Jordan;
- meet minimum paid-up capital requirements and have in place bank guarantees in favour of the JSC (to be called to meet client and other claims in the event of a broker default); and
- have management which meets the required levels of expertise and proficiency.

Individual brokers employed by brokerage firms must be certified financial professionals licensed by the JSC. To become a certified financial professional, applicants must meet standards set by the JSC as to education and good character and pass examinations which test their knowledge of the Jordanian securities market, the trading system and applicable regulations

A foreign bank or broker would form a Jordanian subsidiary that would then apply to the JSC for a brokerage license. If granted a license, the subsidiary would then automatically become a member of the ASE but as with other brokers would be able to trade on the ASE only once it met the ASE's technical requirements. ASE technical requirements are concerned in the main with ensuring competence in the use of the ASE trading system and knowledge of ASE rules. A full list of requirements is available from the ASE.

JSC to conduct financial brokerage activities. There is no direct access to the ASE system for non-members.

A company seeking a listing for its securities must apply to the ASE which admits securities to trading. However, JSC must approve a prospectus before securities are offered.
Listing requirements vary depending on whether the company is to be listed in the First Market, which is intended for the most actively traded "blue-chip" shares, or the Second Market which is intended for less liquid shares, particularly those issued by less established companies. Normally, shares will be traded on the Second Market before being admitted to the First Market, for which they will also need to meet more stringent listing requirements. However, the ASE may list shares arising from privatization directly on the First Market.
Listing requirements for the First Market include the following conditions relating to the issuer: (1) net shareholders' equity is not less than paid-up capital; (2) The Company's Free Float to the subscribed shares ratio by the end of its fiscal year must not be less than 5% if its paid-in capital is 50 million Jordan Dinars or more; 10% if its paid-in capital is less than 50 million Jordan Dinars. (3) the company has made net pre-tax profits in at least two out of the last three years; (4); The number of Company shareholders must not be less than 100 by the end of its fiscal year. (5) its shares have been listed on the Second Market for at least a year; and (6) The minimum days of trading in the Company shares must not be less than 20% of overall trading days over the last twelve months, and at least 10% of the Free Float must have been traded in during the same period.
To be listed on the Second market the issuer must have acquired the right start operating.
Shares are transferred from the First Market to the Second Market if:
a. Reduction of the Net Shareholders' Equity to less than 75% of the paid-in capital.
b. If the Company accounts show losses in the last three fiscal years.
c. If the Company's Free Float ratio drops to less than the minimum set previously.
d. If the number of Company shareholders drops to less than 75 by the end of its fiscal year.
e. If the days of trading on Company shares over the last twelve months drop to less than the minimum set previously.
f. If the percentage of traded Free Float drops during the last twelve months to less than the minimum set previously.

A company with shares listed on the ASE is required to publish its audited annual financial statements not more than three months after the end of the financial year (which is December 31 for most Jordanian companies). It is also required to publish its preliminary results (which must have been subject to examination by its auditors) not more than 45 days following the close of its financial year. Half-yearly financial reports are also required and must be published (following examination by the company's auditors) not more than one month after the end of the relevant period.

Issuers are required to disclose to JSC without delay: (1) major changes to the company's assets, long or short term obligations, capital structure, and controllers (where the change is caused by a change in the shareholdings in the company); (2) major deals concluded or cancelled; (3) unusual ventures; (4) unexpected material losses; (5) major board resolutions and any resolution of the company's general assembly; and (6) changes to Board personnel. They must also disclose any other fundamental matter or major event that could potentially impact upon the company's profitability, financial position or share price. JSC will make this information publicly available through notices at the ASE and at the JSC premises, and will require issuers also to publish the information. If an issuer fails to publish, the JSC will take out advertisements on behalf of the issuer and require reimbursement of its costs from the issuer.

Companies are required to draw up their accounts in accordance with the International Accounting Standards issued by the International Accounting Standards Board. To help prevent insider dealing, the Board of Directors and senior executive officers of an issuing company are required to inform the JSC of any shareholdings in the issuing company and related company, and any inside information they hold.

Apply to the ASE which admits securities to trading. However, JSC must approve a prospectus before securities are offered.

Listing requirements vary depending on whether the company is to be listed in the First Market, which is intended for the most actively traded "blue-chip" shares, or the Second Market which is intended for less liquid shares, particularly those issued by less established companies. Normally, shares will be traded on the Second Market before being admitted to the First Market, for which they will also need to meet more stringent listing requirements. However, the ASE may list shares arising from privatization directly on the First Market.

Listing requirements for the First Market include the following conditions relating to the issuer: (1) net shareholders' equity is not less than paid-up capital; (2) The Company's Free Float to the subscribed shares ratio by the end of its fiscal year must not be less than 5% if its paid-in capital is 50 million Jordan Dinars or more; 10% if its paid-in capital is less than 50 million Jordan Dinars. (3) the company has made net pre-tax profits in at least two out of the last three years; (4); The number of Company shareholders must not be less than 100 by the end of its fiscal year. (5) its shares have been listed on the Second Market for at least a year; and (6) The minimum days of trading in the Company shares must not be less than 20% of overall trading days over the last twelve months, and at least 10% of the Free Float must have been traded in during the same period.

To be listed on the Second market the issuer must have acquired the right start operating.

Shares are transferred from the First Market to the Second Market if:
a. Reduction of the Net Shareholders' Equity to less than 75% of the paid-in capital.
b. If the Company accounts show losses in the last three fiscal years.
c. If the Company's Free Float ratio drops to less than the minimum set previously.
d. If the number of Company shareholders drops to less than 75 by the end of its fiscal year.
e. If the days of trading on Company shares over the last twelve months drop to less than the minimum set previously.
f. If the percentage of traded Free Float drops during the last twelve months to less than the minimum set previously.