Circulation to Amman Stock Exchange Brokers Concerning Affecting Prices of Securities

On January 07.2013, Jordan Securities Commission (JSC) issued a circulation to Amman Stock Exchange (ASE) brokers concerning affecting prices of securities.

 

Circulation


Messrs. of Amman Stock Exchange:

We have noticed recently that many Financial Brokerage Companies execute orders/transactions for the benefit of some of their clients on few numbers of shares affecting thus, the price of a certain security in the Amman Stock Exchange (ASE) by either increasing or decreasing it to the highest or lowest permitted limits during the Trading Session. These kinds of orders/ transactions violate the provisions of Article (15) of the Directives of Trading with Securities at the (ASE) for 2004, which stipulates the following:

A. The Broker shall be prohibited to do any action that aims to give a misleading status of any security's price, volume or activity in a manner that influences supply & demand.
B. The Broker shall not execute any transaction to the account of any of his clients if such a transaction breaches provisions of Paragraph (A) of this Article.

Moreover, Financial Brokerage Companies shall stress on their clients that giving such orders/transactions violate also the provisions of Article (109/B) of the Securities Law, which stipulates the following:

“It shall be prohibited for any person:

B. Solely or in collusion with others, to effect any transaction in securities with the intention of creating a false impression of the price or volume of trades of a security or any related security”.

We would like to inform you that, shall any of your Registered Clients conduct trading via the Internet Trading System (ITS) affecting thus, the price of a certain security in the above stated manner, the (ASE) & the Jordan Securities Commission (JSC) should be informed immediately in writing of such trading by virtue of the provisions of Article (16) of the Directives for Internet Trading on the (ASE) for the year 2009, which stipulates the following:

“The Broker must immediately inform the (ASE) & the (JSC) in writing of prohibited acts committed in violation of the provisions of the Securities Law, regulations, directives, & decisions issued pursuant thereto by its clients who use the Internet Trading System (ITS)”.

We therefore, urge all Financial Brokerage Companies to comply with the above referred to Articles, to avoid taking legal measures against violators vested within the Commissions’ authorities, to protect the Jordan capital market & its investors.


H.E. Mohammed Saleh Hourani
Executive Chairman

Copy to:

Board of Commissioners.
Amman Stock Exchange.
Securities Depository Center.
Surveillance Department.
Licensing & Inspection Department.
Legal Affairs & Enforcement Department.