Just two weeks after starting remote trading, six out of 26 brokerage firms have started trading from their offices instead of the stock market floor, according to a statement by the Amman Stock Exchange (ASE).
This process will gradually continue until all of the brokerage firms are trading remotely, which is expected to occur at the end of this year.
Before a firm can begin remote trading, they must comply with several conditions: First is the brokerage firm needs to provide the necessary equipment. Brokerage firms also must prove that they can prevent unauthorized personnel to enter, buy or sell stocks on the ASE. The last condition is the firm must provide a dedicated line that directly connects them with the ASE.
“We feel that remote trading is a very important step in making the ASE more accessible to Jordanians everywhere, as well as, the international investor,” said Jalil Tarif, chief executive officer of the ASE.
The ASE, a private sector, non-profit organization with legal and financial independence, is in charge of running the market. The ASE observes international standards of fair practice in the orderly transaction conduct of the market. ]
With a capitalization of $5 billion, the ASE is one of the largest stock markets in the region that permits foreign investment. The exchange currently has 590,000 shareholders.
Jordanian corporate and individual investors hold 52 percent of the shares, foreign investors account for 42 percent of share ownership and the government through the Jordan Investment Corporation holds 6 percent. — (Jordan Times)