Khaberni - The Board of Commissioners of the Securities Authority issued principles for accrediting financial brokerage firms to engage in intermarket activities in the foreign financial markets, which started to be implemented from the end of last August. The Authority will issue a list containing the names and data of the financial brokerage companies that have obtained the Council's approval for the purpose of practicing intermarket trading in the foreign markets under these principles.
This step is aimed to provide protection to investors and the investment environment by creating a legal window that facilitates their trading in foreign financial markets and aligns with the Securities Authority’s supreme strategic objectives of protecting investors in securities and enhancing financial stability by reducing systemic risks and organizing and developing the national capital market to ensure justice, efficiency, and transparency to stimulate investment in the market to enable it to perform its mandated role. Additionally, this step is a pioneering and leading procedure at the level of trading with Arab countries.
One of the important requirements according to the accreditation principles is that the brokerage firm must have a valid license to operate as a financial broker, be an active member of the Depository Center and Amman Stock Exchange, have no obligations towards the Securities Authority or the Depository Center and Amman Stock Exchange, and the financial brokerage company’s capital must not be less than five million dinars with a net equity ratio to the paid-up capital of no less than 100%. The principles also stipulate that the foreign financial market in which the brokerage firm intends to engage in remote trading activity must be a regulated market for trading securities and licensed by a regulatory and supervisory authority that is a member of the International Organization of Securities Commissions IOSCO and/or the Union of Arab Securities Authorities if it is an Arab financial market and that it must have concluded a valid bilateral agreement concerning remote trading regulation with the market licensed by the authority with the approval of the Board of Commissioners.
The principles also obligate the financial brokerage firm to provide the necessary guarantees for settling its remote trading in the foreign market according to the requirements specified by the Securities Depository Center and/or the foreign financial market for this purpose, in addition to adhering at all times to the licensing and accreditation system of financial services and to the account segregation instructions issued by the Board of Commissioners.
