All information and data related to shareholders were registered for the past twenty two years based on manual deeds prepared by brokers or based on the information and data that the public shareholding companies obtained from its shareholders directly. Thus, the registers contained errors and mistakes in the information and data.

During Stage One, SDC personnel were recruited, the legal framework for the SDC was developed, and the SDC was established in May 1999.

All issuer records were registered and transferred to the SDC database. In addition, investor numbers (SDC No.) were assigned during Stage Two. In October 2000, the SDC started issuing electronic deeds to increase the levels of reliability and authenticity of Shareholders' Registers maintained by the issuers. Updates to the database are continuous.

The cleansing process began in February 2002. Issuers were required to provide the SDC with copies of Shareholders' Registers which were then subject to an inspection and cleansing process. During this stage, the SDC worked closely with the issuer's Shareholder Relations Departments to validate all shareholder information. This cleansing and inspection of securities at the SDC is a continual process ensuring the highest levels of data accuracy.

The SDC initiated its clearing and settlement system in July 2002 as a transitional step towards complete implementation of delivery-versus-payment (DVP). The clearing and settlement stage aimed to accelerate the process of validating Shareholders' Registers information, thus ensuring the highest possible accuracy levels in shareholder asset transfers. In addition, clearing and settlement enhances the levels of risk management in the Jordan Capital Market.

The SDC obtained Shareholders' Registers of public shareholding companies including both traded and non-traded companies. These registers were updated daily according to the trades executed at the ASE and transfers conducted directly through the SDC. The SDC also updated ownership restrictions such as lien and pledge restrictions upon notification by public shareholding companies.

All trades executed at the ASE were delivered to the SDC for securities clearing and matched to the SDC's Shareholders' Registers to insure that:

After the SDC was provided with a copy of the shareholders' registers by public shareholding companies in accordance with certain specifications and after these registers were subject to the inspections and cleansing process by the SDC, the SDC fulfilled the measures for transferring the shareholders' registers of public shareholding companies and the depositing of the authenticated part of those registers as of 31/12/2004 in accordance with the decisions of the JSC Board of Commissioners and the SDC Board of Directors.

The registers' depositing process was conducted in accordance with specific measures to guarantee the rights of all concerned parties and in two stages. In the first stage, public shareholding companies were provided with copies of their shareholders' registers and were required to check and audit the data and information contained in those registers. In the second stage, the companies were provided with the final registers as of 31/12/2004 containing the deposited and non-deposited registers. Only authenticated shareholders whose information matched the SDC database were deposited at the SDC.

The shareholders' register was divided into the deposited register under the jurisdiction of the SDC where the records and registers of the SDC are considered legal proof of the ownership of deposited securities by virtue of the Securities Law and the non-deposited register under the jurisdiction of the public shareholding company where companies have to fulfill the measures for depositing the non-deposited securities by providing the SDC with the necessary information and data.

The following table outlines the number of shareholders, the number of issued shares and the market value of the 237 deposited and non-deposited shareholders' registers submitted to the SDC.

Beginning on September 1, 2003, brokers began transferring client securities to a broker-maintained client account before any trade would be executed, thus enabling the broker to confirm that the client owns sufficient shares to execute the trade. 

On January 2, 2005 the SDC implemented the final stage of clearing and settlement on the basis of Delivery versus Payment. This principle is considered an important international standard applied in capital markets where delivery of sold securities is against payment of funds. Financial settlements between brokers are conducted through the SDC by money transfers from the brokers' accounts to SDC Settlement Account at the Settlement Bank. Consequently, the SDC transfers these funds to the brokers who should receive funds. The Central Bank of Jordan was chosen as the Settlement Bank.

During this stage, the SDC undertakes the responsibility of registering any changes or amendments made by the issuer on securities issued and authenticating it on the SDC database, this includes: Increase/ Decrease of capital, Stock Splits and Merger. In addition to authenticate and release of pledge and freezing.

The SDC also offers services to owners of securities, issuers, brokers and custodians such as market-to-market services, portfolio valuation, market activity analysis and transaction statement services.

The SDC works to provide various electronic services through its website to the investors which include Online Account Viewing, Electronic Initial Public Offering and Members’ Area to enhance moving from paper to electronic environment that in turn, reduce time, effort and tangible costs.

On 01/10/2017, the SDC implemented the new development to the settlement cycle including the involvement of the custodians through settling the trades of their clients directly with the SDC, this project comes from the SDC's direction towards the implementation of international standards and best practices in the field of settlement of the securities' values. To achieve that, the SDC creates a settlement contract which is a new contract created for the associated trading contract where one party of the contract is a custody account. The custodian has the option to accept or reject the settlement contract through the custodian system during the period specified in the instructions, otherwise, the contract is considered rejected.
 
The custodian's acceptance of the settlement contract means that his contract is settled with the associated trading contract between the custodian and the SDC. In case the custodian rejects the settlement contract, then the concerned broker is obliged to settle the trading contract with the SDC. In every trading day, the SDC calculates the net amount that the custodian must pay or receive by subtracting the total amount of selling settlement contracts from the total amount of buying settlement contracts for that trading day.

The goal of this project is to reduce risks related to the settlement of the securities' values and make a quantitative leap in the market to enhance the confidence of the investors in Jordanian securities.