І- Block Trades
Block Trade:
Trading between two Brokers or through one Broker to buy and sell a security according to article (16) of the directives of trading with securities at the Amman Stock Exchange for the year 2018 .1
1- Block Trades Conditions:
| First Market and Right Rights | Second Market and Right Rights | Bonds & Sukuk | OTC Market | Restricted Trading | |
|---|---|---|---|---|---|
| Minimum Value 2 | 200,000 JD | ||||
| Price Limits3 | 7.5% | 5% | 20% | 10% | 3% |
| Execution Time 4 | 13:30 - 13:45 | ||||
2- Supporting documents that should be submitted to the ASE:
a. authorization of the client to buy/sell a security.
b. Statement of client's (seller) account at the same block execution date that issued by Securities Depository Center to ensure that the Securities to be sold are available in the concerned Cliet’s account with that broker, and those securities are free from any ownership restrictions that may prevent its absolute disposal or direct delivery.5
c. Certificate of registration which includes the names of authorized persons to sign on behalf of the client, if the client is a legal person.
d. Prior written approval of the official parties - whenever it deems necessary-.
3- Trading Commissions for Block Trades:
Trading Commissions for block trades are calculated based on same percentage stipulated at the following link:
/en/Product-Services/Trading-Services/Transaction-Cost
4- The brokers must inform and provide the ASE with the all supporting documents before at least one hour from the execution time.
II- Block trades excluded from price limits:
Block Trades may be excluded from price limits allowed for the block trade under the decision of the Board of directors which fulfill the conditions of block trades.
The Procedures for Executing the excluded:
Each broker should present a written request to the Board of Directors for excluding the block from the allowed price Limits, which contains details and justifications of the exception, in addition to all the supporting documents.
The exception request is then submitted to the Board of Directors at their next meeting for the sake of accepting or rejecting the request, the ASE shall notify the involved brokers of the decision, and in case of acceptation, the brokers should execute the block as soon as possible.
The ASE enters buy and sell orders into the ETS on behalf of the broker upon the broker's written authorization.6
The ASE enters the orders during the specific times set for executing the block trades.
Commissions shall be calculated at either the execution price or the closing price of the relevant security on the execution day, whichever is higher.7
(1): Article (2) from Trading Directive of the Amman Stock Exchange.
(2): Board of Directors decision number (61/2013), dated on 23/9/2013.
(3): Board of Directors decision number (19/2020), dated on 26/5/2020 and number (57/2019) dated on 29/8/2019 for right issues.
(4): Board of Directors decision number (19/2020), dated on 26/5/2020.
(5): Article (16/b/2) from Trading Directive of the Amman Stock Exchange.
(6): Article (17/C) from Trading Directive of the Amman Stock Exchange.
(7): Article (17/b) from Trading Directive of the Amman Stock Exchange.