Code of Ethics of Amman Stock Exchange Issued by virtue of the provisions of Article 26 (e) of the Securities Law No. 23 of 1997
These Directives shall be called the “Directives for the Code of Ethics of Amman Stock Exchange for the year 1999”. They shall enter into effect as of October 15. 1999.
The following words and expressions shall have the meaning assigned to them hereunder, unless otherwise indicated by context:
Amman Stock Exchange / Securities
The Board of Directors
The Board of Directors of the Stock
A financial services company licensed by the Securities Commission to conduct financial brokerage activities.
The members of the Board of Directors. the Chief Executive Officer and the staff of the Stock Exchange.
The member shall respect the Securities Law and the regulations and directives issued by virtue thereof, including those regulations and directives in force at the Stock Exchange; and it shall execute Stock Exchange transactions, in line with sound trading. In particular, the member shall pledge to refrain from doing the following:
1) Wash, sham and unreal transactions which cover , in reality, tradings meant to mislead the dealers into believing that there is an active securities market.
2) Any direct or indirect behavior intended to influence the prices of securities by way of triggering off a chain of operations on a given security, and which provokes an apparent demand on or offer of, or increases or decreases the prices of. securities with the aim of encouraging others to sell or buy such securities, as the ease may be.
3) Any behavior or action intended to provide misleading and incorrect data, declarations or information, or to spread rumors in relation to a rise or a fall in the prices of securities.
4) Defaming or degrading any other member.
5) Receiving commissions that are beyond the minimum or maximum ceilings set by the Securities Law.
6) Using securities deposited with it as safe-custody, or securities held in the name of clients, to achieve a private interest.
7) Moving clients’ portfolios just to obtain commissions.
8) Divulging confidential information about clients.
9) Conducting any transactions that run counter to the correct practices of the Stock Exchange, or which are incompatible with the principles of a fair and transparent market.
It shall he prohibited for any member to enter into any operation for its own account, if any of the members of the Board of Directors, or any of its staff, is aware of any circumstances which might render such a transaction a breach of the provisions of Article 68 of the Securities Law, Likewise, it shall be prohibited for the member to enter into any transaction for the account of any of its clients, if the said transaction is in breach of the said Article.
The member shall abide by the sound settlement of transactions executed by it. in accordance with the operative regulations and directives.
A. Each member shall organize its work in a responsible manner, and shall provide sufficient human, technical and financial resources to conduct its business, in accordance with the operative regulations and directives, including these Directives. In particular, the member shall consider the following:
1) Setting up suitable bases, lists regulations and procedures for the execution and settlement of transactions, as well as for keeping records and reports.
2) Laying out suitable administrative and internal audit procedures.
B. Each member shall keep its financial records and papers in accordance with the accepted accounting standards.
The member shall include in the agreements it makes with its clients any information or conditions required by the operative regulations and directives, the following being the minimum:
A. The names and addresses of the member and the client.
B. A statement of the services to be rendered by the member.
C. A statement of the commissions to be received by the member in return for its services, or a reference to a separate document which indicates such information, on the condition that said commissions are within the authorized parameters.
Under no agreement shall the member restrict, nor he released of, the responsibilities imposed on it by virtue of the laws, regulations and directives.
When executing a sale or a buy for the account of a client, the member shall, immediately or as mutually agreed upon, inform the client of the details thereof.
In the event the member has an interest in the transaction to be conducted for the account of the client, or if it has any relation to the transaction which might lead to a conflict of interests, it shall he prohibited for the member to execute said transaction, unless it brings said interest to the attention of the client, takes the appropriate action to safeguard the client’s interest and affords him / her a fair treatment.
The management of the member shall be fully responsible for the breaches of the regulations and directives committed by its staff.
A.The persons shall keep the information and activities related to the Stock Exchange confidential; it shall be prohibited for them to divulge said information or activities in any manner or form, irrelevant of their importance, or to use said information and activities for their own or for any third party’s benefit.
B. It shall he prohibited for the persons to transmit any confidential information to any person, or to transmit such information from the member’s representative at the Board of Directors to his / her company.
C. The persons shall keep the confidential documents in a safe place when not used, so as to ensure that no one has access to them.
The persons shall take the necessary procedures and precautions to ensure the safety of the electronic systems of the Stock Exchange, and to protect them from destruction, alterations or use by unauthorized persons. In particular, the persons shall be obliged to do the following:
A. To protect their data which enables them to enter into the systems.
B. Not to allow unauthorized persons to use the systems.
C. Not to use any Stock Exchange software or hardware before the specialist ensures their safety.
D. As soon as it comes to their knowledge, inform the concerned employee in the Information Technology Department of an violation of software or related material copyrights in the Stock Exchange, as well as or any misuse of the Stock Exchange’s systems or of any possibility of having a software that might affect the data stored on the hardware.
A. It shall be prohibited for the persons to send confidential information via the Stock Exchanges electronic mail, unless they are authorized to do so.
B. Print-outs of important letters sent or received via the Stock Exchanges electronic mail shall be kept.
C. It shall be prohibited for the persons to have access to the Stock Exchange’s sent or received electronic mail, without authorization to do so.
It shall be prohibited for the members and the persons to behave in any manner which might harm the reputation of the Stock Exchange or its members.
It shall he prohibited for the members and the persons to receive or to offer any gifts or donations, such gifts or donations might influence the giver’s or receivers obligations.
Subject to professional and disciplinary liability, the members and persons shall abide by these Directives