The first trading session was held at the PEX on 18/02/1997. Since its launching, the PEX depends on electronic trading and clearing, depository, and settlement systems. In this sense, the PEX is considered the pioneer securities market in the region that adopted the automation of all its processes related to trading, and clearing, depository and settlement. At present, the PEX is adopting the Horizon system supplied by OMX as a trading system. In addition, it is adopting the SMARTS system as a surveillance system.
Characteristics of Electronic Trading System
• Executing orders according to priorities without any prejudice. Priorities are arranged according to the following criteria
• Remote trading through brokerage firms and their branches.
• Trading in more than one currency. Currently, trading is executed by the Jordanian dinar (JD) and the USD.
• Electronically-saved data makes it possible to retrieve any data and refer to a previous date to look into all movements that were carried out on that date.
• Direct link " Tightly coupled" with the CDS System. All trades are reflected directly on the investors' accounts, verify that their shares balances are available before any sell order is entered and to make sure that ownership ratio is not exceeded.
Trading Days and Times
• Trading is carried out daily from Sunday till Thursday every week.
• Trading is not carried out on: weekends (Friday and Saturday), official holidays, and the last working day at the end of the fiscal year.
• Scheduled trading session is to be cancelled if the ratio of member firms technically unable to connect and to trade is (35%) or more of the total number of member firms.
Trading session starts at 09:45 and finishes at 13:30.
• Price limit up and down: (7.5%) for the first market and (5%) for the second market.
Price limit up and down: (7.5%) for companies listed in the first market and (5%) for companies listed in the second market.
• Trading Unit
At present, the minimum limit of the number of shares allowed for trading (buy – sell) at the PEX is one (1) share for all traded shares.
Al Quds Index
The Palestine Exchange modifies the Al-Quds Index Sample for the year 2012The Palestine Exchange (PEX) adjusted list of companies to be included in its Al-QUDS INDEX for the year 2012. PEX raised the number of companies included from 12 to 15 to reflect the increase in the number of listed companies which grew to 46 companies as at the end of December 2011; seven (7) new companies were listed in 2011. The modified sample represents 30% of the number of listed companies and 83% of total Market Cap as at the 28th of December 2013, it includes the following listed companies:.
1 Palestine Development & Investment PADICO (Investment)2 Palestine Industrial Investment PIIC (Investment)3 Palestine Real Estate Investment PRICO (Investment)4 Union Instructions & Investment UCI (Investment)5 Arab Islamic Bank AIB Banking & Financial (Services)6 Bank of Palestine BOP Banking & Financial (Services)7 Palestine Islamic Bank ISBK Banking & Financial (Services)8 Tn National Bank TNB Banking & Financial (Services)9 National Insurance NIC(Insurance)10 Palestine Telecommunications PALTEL (Services)11 Palestine Electric PEC (Services)12 Wataniya Palestine Mobile Telecommunications WATANIYA (Services)13 Birzeit Pharmaceuticals BPC (Industry)14 Jerusalem Cigarettes JCC (Industry)15 Golden Wheat Mills GMC (Industry)
At the end of every year, the companies that are included in Al Quds Index are assessed since the sample is modified in accordance with the trading statistics of that year. The following criteria are adopted:
1) Trading volume.
2) Trading Value.
3) Number of trades.
4) Number of trading days.
5) Market Value.
6) Average of share Turnover.
• Trading Surveillance is based on regulations related to securities which are applicable in Palestine; these are: Securities Law No. (12) of the year 2004, Companies Law No. (12) of the year 1964, Securities Trading Regulation, rules, instructions issued in their accordance, and instructions issued by the Capital Market Authority.
• Trading Surveillance aims at guaranteeing the integrity and transparency of trading with securities by regulating and controlling traded securities of the listed companies at the PEX and verifying their compatibility with current laws and regulations.
• The SMARTS System is adopted to carry out the functions of trading surveillance. SMARTS, which is adopted by the PEX and the Palestinian Capital Market Authority, is considered one of the best electronic systems used in trading surveillance used by the world exchange markets.
• The Trading Surveillance System monitors the trading session instantly to detect any unusual behaviors of prices or trading volumes by making comparisons between the electronic information of the trading session and the standards adopted by the system so that an alert triggered when any standard is violated.
• Any violation is subject to the adopted charter of penalties and fines.
Special Data Dissemination Standard (SDDS)
Origin and Purpose:International Monetary Fund ( IMF) launched the " Special Data Dissemination Standard (SDDS)" in 1996, which represents a framework for disseminating of statistical data by providing a number of indicators with specific specifications and deadlines, in order to improve the coverage and scope of available national data , data quality and timeliness to inform the public and improve accessing data that based on international financial markets, operations and evaluations of economic policies in general, and thus facilitate decision-making process in both public and private sectors.
The subscription to SDDS is voluntary for countries, but it should be noted that subscribed countries to SDDS should abide to some of inclusive practices of data dissemination including , time of publishing and periodicity, as well as to developing plans to ensure improving the quality of their statistics, and a national coordinator would be assumed to coordinate this work in the country.
The need to developing standards for data dissemination emerged during the world financial crisis in mid-nineties, where the lack and weakness of the information and statistics contributed to the occurrence of these crisis.
Indicators of SDDS:SDDS includes 22 Indicators and they are divided into four economic sectors: the Real Sector, where GDP is the most important indicator of this sector. Fiscal Sector, where the general government operations are the most important indicators of this sector, The Financial Sector, where the depository corporations survey is the most important indicators of this sector. The External Sector where the balance of payments and the international investment position are the most important indicators in this sector.
Importance of SDDS:• Promoting the availability and provision of an integrated and comprehensive data in terms of (coverage, periodicity and timeliness of publication).• Guiding countries that have access to capital markets or those seeking access to SDDS that will allow users of data in general, and participants/investors in financial markets in particular, to accessing sufficient information to assess economic situation in their countries.
Goals of SDDS:• Enhancing provisions and availability of comprehensive statistics.• Facilitating efforts of countries to pursue sound macroeconomic policies and improving functioning of financial markets.• Assisting in preventing financial crisis or mitigating them through the promotion of accessing to necessary information for policy makers and participants in international capital markets.
How to join SDDS:• A formal adoption of SDDS as framework for the development of official statistics by the government of a concerned country.• Appointing a national coordinator of SDDS as an administrator of main contacts with IMF on issues related to SDDS as well as coordination with various institutions producing statistics within the country to meet the requirements of the SDDS.• Publishing a National summary Data Page (NSDP) on the web page of the concerned institution which is responsible for coordination and communication with the International Monetary Fund.• Preparing and publishing Advance Release Calendars (ARC) to be provided, in advance, to IMF to be published by IMF website on a regular basis.• Developing metadata of indicators and disseminating them on the website of the International Monetary Fund, and to be updated periodically.
Justifications for joining SDDS:• keeping up with developments on the quality of statistical data in terms of coverage, periodicity and timeliness.• Providing economic and financial statistical data for decision and policy-making.• Providing statistical data for international comparisons and compatibilities. • Strengthening role of member countries in the international statistical map and strengthening its membership in the International Monetary Fund.• Promoting the principle of transparency in published economic and financial data in member countries.
SDDS reflections on the Member countries:• Assisting countries in strengthening and developing statistics and mechanisms of disseminating data through the development of transparency and availability of data of financial and economic status to the public and the concerned.• Strengthening role and importance of statistical data on local and international levels.• Expanding of accesses and interests in and the use of data and statistical indicators, both at the local or international levels, through disseminating data on IMF website and linked pages and websites of the member country.• Defining the member countries potentials and possibilities of foreign investment through the dissemination of data related to indebtedness, expenditures and International Investment Position (IIP).Dimensions of SDDS include:• Data: coverage, periodicity, and timeliness ( time of publishing and releasing the final findings).• Access by the public • Integrity of data.• Data quality.
1. SDDS comprises four key economic sectors including a number of indicators, namely:1. The Real Sector indicators include:1 - National Accounts (GDP).2 - Employment.3 - Unemployment.4 - Wages.5 - Production Index.6 - Consumer Price Index.7 - Producer Price Index.8- Population.
2. Fiscal Sector include:1 – General Government Operations or Public sector Operations.2 - Central Government Operations.3 - Central Government Debt.
3. The Financial Sector indicators include:1 - Depository Corporations Survey.2 - Central Bank Survey.3 - Interest Rates.4 - Stock Market: Share Price Index.
4. External Sector indicators include:1 - Balance of Payments.2 - Merchandise Trade.3 - External Debt.4 - Official Reserve Assets.5 - Data Template on International Reserves and Foreign Currency Liquidity.6 - International Investment Position.7 - Exchange Rates.
The service that the member firm provides to its clients to enable them to enter sell and buy orders to the trading system and to follow them up by themselves via the internet.
· E-trading instructions were approved by the PEX Board of Directors in 2007.
· E-trading service was applied on 17/04/2007 on which the first e-trading trade was carried out.
· All member firms at the PEX offer e-trading service to their clients.