The Settlement Guarantee Fund was established by virtue of Article (88) of the Securities Law No. (18) of 2017. Its objectives include:
1.
Covering the cash deficit of a Fund member in connection with his purchases of securities.
2.
Covering the deficits in the securities account of a Fund member in connection with his sales of securities on the market.
The Fund has a legal personality with financial autonomy and is managed by the SDC Board of Directors and the chief executive officer. Its members include
financial brokers and custodians. The Internal By-Law of the Settlement Guarantee Fund became effective as of 31/12/2004 where the Settlement Guarantee Fund is considered the legal and factual successor of the Financial Brokers’ Guarantee Fund.
The contributions of the financial brokers (54) brokers of the Fund are divided into cash contributions and bank guarantees. The contributions are calculated based on specific formulas and are periodically re-calculated
The following table outlines the Settlement Guarantee Fund Contributions provided by financial brokers as of 31/12/2023:
Payment Orders
5,283,000.00
Cash Contributions
2,125,000.00
Total
7,408,000.00
Whereas the custodians of banks (12) custodians provided the SDC with standing instructions upon agreement with the Central Bank of Jordan (CBJ) to transfer the defaulted amount from their accounts with CBJ to the SDC upon the request of the SDC, while non-bank custodians provided bank guarantees to the SDC with a value of JD 400,000.
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