1. Chief Executive Officer
Amman Stock Exchange
Jalil Tarif
Chief Executive Officer
AMEDA Meeting
Dead Sea - Jordan
October 2007

2. History of Capital Market
1930s Trading in Securities started informally.
1976 Amman Financial Market (AFM) was established.
1978 AFM started operations.
1997 Capital Market Reforms introduced, Securities Law issued.
1997 Jordan Securities Commission (JSC) was established.
1999 Amman Stock Exchange (ASE) was established.
1999 Securities Depository Center (SDC) was established
2002 New Securities Law Issued.
Amman Stock Exchange

3. Capital Market in Jordan
Jordan Securities Commission (1997)
Amman Stock Exchange (1999)
Securities Depository Center (1999)
Public Shareholding Companies
Certified Financial Professionals
Mutual Funds
Financial Services Companies
Financial Brokerage
Investment Trusteeship
Investment Management
Financial Advisory
Management of Primary Issues
Custodian

4. Amman Stock Exchange (ASE)
Established in March 1999
Independent legal entity
Managed by private sector
Membership of brokers
Non for-profit
Amman Stock Exchange

5. Securities Listing Requirements
First Market
Second Market
Financial Position Requirements:
Profitability
Dividends ( Cash or Stock)
Right to Commence Operations
Financial Reporting:
Annual Report
Semi Annual Report
Liquidity Requirements:
Free Float
Turnover
Trading Days
Number of shareholders
Continuous Listing Requirements
Bonds
Government and Corporate Bonds are eligible for listing
Financial Reporting:
Annual Report
Semi Annual Report
Quarterly Report
Amman Stock Exchange

6. Trading System Overview
Backup Trading Floor
Surveillance
Remote Brokers
Production Servers
Information Dissemination
(NSC)
(GL)
Websites
TV Channels
UNIX BOX
High Availability Cluster
Powerful Dual Processor
CONNECTION
Fiber Optics
Leased Lines
FACILITIES
Remote Trading
Remote Inquiry
Intranet
Data Vendors
Hosts
Main Database
Trading System
Mobile Phones
Market Monitors
Users
Trading Floor
Surveillance
Information Display
Screens
Amman Stock Exchange

7. Information Dissemination
ASE disseminates clear, accurate, sufficient and timely information and data on securities trading.
ASE discloses information on issuers, members, and material information. Public may have access to these material.
Data disseminated through GL stations, data vendors, market watch, ASE website, and TV stations.
Times of transactions information posted at the ASE site.
Post trade data sent to brokers through Domino.
Amman Stock Exchange

9. ASE Market Capitalization & Trading Value
(US$ million)
Trading Value
* End of September
Market Cap

10. Average Daily No. of Transactions
* End of September
Amman Stock Exchange

11. ASE Performance
(%)
* End of September
Amman Stock Exchange

12. Primary Market (US$ million) (Point) Amman Stock Exchange
* End of September
Amman Stock Exchange

13. Market Velocity
* End of September
Amman Stock Exchange

14. The Market P/E Ratio Historical Average = 17 (Times)
* End of September
Amman Stock Exchange

15. Non-Jordanian Ownership, September 2007
(%)
Amman Stock Exchange

16. Recent Study by IMF
Investors may be able to achieve additional diversification by investing in the ASE
On a risk-adjusted basis (Sharp Ratio),the ASE outperformed most markets.
ASE compares favorably with many other regional markets in terms of investment climate.
Low price volatility.
Amman Stock Exchange

17. Permissible Equity Markets Investment Analysis, CalPERS
Country Macro-Factors
Political Stability
Transparency
Productive Labor Practices
Poland
Israel
South Korea
Chile
Czech Republic
South Africa
Taiwan
Hungary
Mexico
Malaysia
Brazil
Jordan
India
Thailand
Turkey
Peru
Argentina
Philippines
Colombia
China
Morocco
Sri Lanka
Venezuela
Indonesia
Russia
Egypt
Pakistan
Market Macro-Factors
Market Liquidity and Volatility
Transparency
Market Regulation/Legal System/Investor Protection
Capital Market Openness
Settlement Proficiency/ Transaction Costs

18. Future Plans Jordan National Financial Center Project
Upgrading the trading system
Internet trading.
Demutualization
New ASE Dow Jones Index
Amman Stock Exchange

19. Jordan National Financial Center Project
The Center will contain:
ASE
SDC
Financial Studies Center
Brokers’ Offices
Investors Gallery
Other facilities
The Center total area m2 .(Buildings area m2)
Total cost US$ 100 million
Expected completion date November 2009
Amman Stock Exchange

20. Project’s Site
Amman Stock Exchange

21. Project’s Concept
The external design of the building is inspired from the Siqq of Petra which is considered an ancient symbol in Jordan’s history.
Amman Stock Exchange

22. Jordan National Financial Center Project
Amman Stock Exchange

23. Upgrading the Trading System
A contract was signed with AtosEuronext Market Solutions and GL Trade for Euro 2.5 million.
New trading system V900.
Fully Linux environment.
System applied in major stock exchanges.
Better flexibility to implement market rules.
Highly improve system capacity and lower latency.
The new system will be up and running by May 2008.
Amman Stock Exchange

24. Demutualization
The new Securities Law for 2002 authorized setting up other stock exchanges
The ASE may be restructured by a decision of the Board of Commissioners of the JSC, upon approval of the Council of Ministers.
Negotiations are taking place with alliances to support demutualization process.
The ASE shall become shareholding company totally owned by the Government as a first step.
The Government then shall sell a share to financial institutions, brokerage firms, international institutions and other parties.
Amman Stock Exchange

25. New ASE Dow Jones Index.
An agreement with Dow Jones was signed in late 2006
Dow Jones will calculate a new composite index, named “The Amman Stock Exchange and Dow Jones”.
The new index will be weighted by market capitalization of free float shares.
The index can be used as a base tool in forming financial derivatives and ETFs.
The index will be launched in late 2007.
Amman Stock Exchange

26. Other Projects Internet Trading. Joining the WFE.
Codes of Corporate Governance
Introducing new instruments.
Marketing strategy.
Amman Stock Exchange

27. International Exposure
Amman Stock Exchange

28. Investment Opportunities
Political Stability
Privatization
No ceiling on foreign
equity ownership
Free repatriation of
investment and income
No taxes on
cash dividends
Economic Openness
and Free Trade
No capital gains tax
Amman Stock Exchange