Agreement of Online Securities Trading

Transcription

1 Agreement of Online Securities Trading

2 In the Name of God, Most Gracious, Most Merciful Agreement of Online Securities Trading Date:../../.. First Party: Ajiad for Securities Second Party:... Address: Amman, Al-Shmeisani, The Housing Bank Comple Address :.. Tel: Tel:. Fa: Fa: P.O.Bo: Amman P.O.Bo:. etrade@ajiadsecurities.com Website: Hotline: Reference No: Whereas the First Party is a company registered with the Companies Controller as well as with the Jordan Securities Commission (JSC) and has the official permits necessary for practicing financial brokerage activities and online trading according to Securities Law, the regulations and instructions issued pursuant thereto or any amendments made on it in the future. And whereas the Second Party wishes to trade in securities, by way of buying and selling, in Amman Stock Echange through the First Party, the two parties agreed as follows: Article (1) The preamble of this Agreement and the security trading agreement between the company and the client, with all of its terms and conditions agreed therein, the application of opening of trading account, the risk disclosure statement, the appendi of fees number (1), the appendi of conditions to be in the client number (2), and The emergency plan shall be deemed an integral part of this agreement and read with it as a single unit. The company's obligations Article (2) The company shall supply the client with online security trading service through its own systems used for the purposes of trading through the Internet. Article (3) The company shall allocate a reference number for the client according to regulations and instructions, and this number shall be adopted for all trades by the company on behalf of the client. Article (4) The company shall provide the client with a user name and password to use it for the purposes of trading through the Internet. Article (5) The client agrees that want to use online trading service that the company shall charge trading fees and commissions set forth in the appendi No. (1) of this agreement and they are as follows:- 1 - The trading commission by (...), including fees, commissions for the Jordan Capital Market Institutions. 2 - Fees for opening an account for online trading by (50) dinars to be paid once. 3 - Subscription fee for online trading service by (10) dinars to be paid monthly. 4 Any additional fees or charges imposed by any of the Jordan Capital Market Institutions. 2

3 Article (6) The company shall have the right to replace or modify the design form and content of online trading software in accordance with the instructions to do so after obtaining the approval of ASE on these amendments. The company is committed to notify the client of such amendments in advance of the effective date. Article (7) In case that the service is not available to the Client for any reason, the company shall be committed to enter the purchase and sale orders on behalf of the client based on the authorizations issued by the client in accordance with the instructions of securities trading issued by the Amman Stock Echange for the year 2004, also the company is committed to hold such authorizations. Article (8) The company shall abide at all times by the provisions of the securities Law and the regulation, instructions issued thereunder. The professional principals, codes of ethic and instructions of online trading by which the company is pound, and future amendments thereto, shall be deemed an integral part of this Agreement. Article (9) The company is committed to provide the needed technical support and assistance to its clients and provide the hotline numbers ( ) and ( ) during the official working hours. The company is committed also to inform the client immediately in the event of change these numbers. Article (10) The Company shall bear all legal and financial liabilities in case of carrying out actions or behaviors in the client's account that are not in conformity with the authorizations granted to it in this agreement. Article (11) The client that wants to use online trading service agrees that statement of the minimum conditions required by the company and should be available in the client and set forth in the appendi No. (2) of this agreement. Client Obligations Article (12) The client acknowledges that he has taken note of the legislation of online trading service, the online trading risk disclosure statement attached to this agreement, the bulletin awareness developed by the company and the emergency plan, and he acknowledges that he has received a copy of all of them. The client also acknowledges his awareness and acceptance of all risks associated with the online trading and bear full responsibility resulting from the use of online trading service including:- A - Fault made by the client when enter, modify or cancel orders to buy and sell. B - If user name and password is lost and / or used by others. C - The possible incompatibility of the client's computer and systems with the online trading systems used by the company. D - Any acts or events resulting from the client misuse of the program. Article (13) The client acknowledges that the information obtained as part of the online trading service is not to promote or recommendations to buy or sell any securities, all purchases and sales made by the client are based on request and on his sole responsibility. Article (14) The company shall not be responsible for the rejection of any order of securities purchase which there is no cash balance when insert such purchase order, as the company is not responsible for the refusal to any sale of securities that are not in possession of the client when he inserts the sell order. 3

4 Article (15) If the client wishes to transfer any amount required when implementation of online trading from any currency to another, the echange rate for this purpose shall be determined according to the price adopted by the company on the day of echange. Article (16) A) The client is solely responsible for the protection and maintenance of the user name and password without any liability of any manner on the company. B) The client shall notify the company immediately of any actual or possible unauthorized use, interference or breach of his user name or password, so that the company is in order to protect the clients account as soon as possible. Article (17) The client shall pay the value of securities you to be purchased in addition to commissions and fees and any costs agreed as a result of online trading, and the client is obliged to provide securities to be sold for his account. Article (18) The client shall solely bear all liability arising from his investing through the internet trading system using his own password even if it was used by someone else. If the client lost or forget the password, the company can re-supply the client with the password provided he shall sign on the form prepared for that. Article (19) The client authorizes the company under this agreement and without any further documentation to enter in his account all due amounts of the purchased securities and any fees, commissions costs and epenses incurred of online trading and any other related epenses. he authorizes the company enter the prices of the purchased securities sold for his interest less any fees, commissions and costs resulting of online trading via the internet and any other related epenses thereto. Article (20) A) The client acknowledges that the program provided for electronic access for the purposes of online trading is the company s property, where the clients is limited to use it for the purposes of trading only. B) The client undertakes that it will not produce or re-produce or modify any software or any documentation provided by the company as part of an online trading service and the client shall not download or upload or transfer service programs which are owned by the stock echange and his right is limited to use it for the purposes of trading, and the client is not entitled to circulate this information, re-circulate it, publish or transmit it in any form and undertakes not to use this information outside the scope of the terms and conditions of this agreement. Article (21) The notice to confirm the implementation of any online trading operation is usually given over the internet service. If the client does not receive this notice immediately after the operation he shall refer to the company to confirm the operation status during the net working day. The notice does not require the other party's signature and shall be binding legally. Article (22) Ecept in cases demonstrating the failure of the company in accordance with the provisions of Article (10/D) of the regulations of online securities trading, the Company or any of its employees does not assume any liability, whether direct or indirect or emergent for any obligations, loss or damage or epenses incurred by the Client as a result of the following: A) The use of an online trading service or inability to use it. B) Any system failure (the trading system at the market or trading system over the Internet with the company) or failures of electricity or communications network or any other system's failures. 4

5 E) With the eception of cases demonstrating the company's failure to take necessary action to protect its program, the company is not responsible for any malfunction or virus attack or computer hackers, and any hacking of the program or the password shall be of the client's responsibility alone. Article (23) A) The client is prohibited to use this service to implement the attributes and shall abide the Securities law, rules and regulations issued thereto, and instructions for online trading issued by Amman Stock Echange (ASE). B) The client bears full legal responsibility for violations committed by him. General Provisions: Article (24) The term of this Agreement is one year and the Company may terminate immediately this agreement and other agreements between them and the Client if the Client fails to comply with any part of this Agreement and / or the agreement for trading in securities or the securities law and regulations issued there under, or regulations of trading online and to stop the client's access to the online trading service and its use. During this period the Company may continue to complete or finalize or terminate any transaction which may be under eecution prior to termination. Article (25) A) In the event of contradiction between any provision in this Agreement with provisions of the Securities Law, rules and regulations, and decisions issued thereto then it is not applied. B) If it is found at any time that one or more of the terms of this agreement violates any regulations of law, the invalidity of this item does not invalidate the rest of the terms of the agreement and the remainder of this agreement and the rest of its provisions take effect. Article (26) A) Notice or notification made between the two parties in respect of the Agreement is notified to the other party if sent by , or sent by normal mail or via fa, and each party shall notify the other party in case of changing the address, and is responsible for any notification made to the previous address. C) The Parties agree to echange and receive all correspondence electronically and be binding upon them. Article (27) Upon signing this Agreement, the Client acknowledges and confirms that he reads carefully all the terms and conditions contained in the note of online trading service published on the company's website ( which includes (statement of risks of online trading, Emergency plan, instructions for using the program), and acknowledges that it is binding to him with any change in this note the company considers appropriate. As this note is considered complementary to this Agreement, and the Agreement of securities trading, and request of opining the account between the client and the company. Article (27) This Agreement consists of the introduction, and (28) articles, including this article, stipulated on (5) pages, eecute and signed in two copies on / / and each party received a copy of it. First Party Second Party Ajiad for Securities Name.. Signature. Signature... 5

6 Appendi No (1) Statement of the amount of the allowance that'll earn for the company to provide online trading service The company will make an agreement with who seeks to use the online trading service and through the etension of the convention anneed, the charging of fees and commissions set out below from the client, namely:- 1 - The trading commission by (...), including fees, commissions for the Jordan Capital Market Institutions. 2 - Fees for opening an account for online trading by (50) dinars to be paid once. 3 - Subscription fee for online trading service by (10) dinars to be paid monthly. 4 Any additional fees or charges imposed by any of the Jordan Capital Market Institutions. Name :.. Signature : Date :. 6

7 Appendi No (2) Statement of minimum conditions that must be provided in the client wishing to use online trading service 1- The client is adult of sound mind. 2- Holds an acceptable level of education. 3- Able to use personal computer and the Internet. 4- Provide acceptable financial solvency and the amount of the minimum specified by the Jordan Securities Commission and / or ASE. 5- Any other conditions imposed by the Securities law and regulations issued thereunder, including the trading instructions via the Internet. 6- Any other conditions imposed by the Amman Stock Echange, including the specifications of a computer user, and protection systems from viruses and hacking. Name :.. Signature : Date :. 7

8 Disclosure statement risks of online trading through the Internet issued by Ajiad Securities The world is witnessing a growing usage of electronic trading service of securities through the internet both in terms of volume of transactions, the number of dealers or the number of traded securities, as result of the increasing demand to deal through the internet instead of the traditional way of delegating broker or mediator to carry out the required operations. In the trading of securities via the internet, the customer enters the purchase and selling orders without the need to communicate with the broker (mediator) and to authorize him to do so. Accordingly, the investor is the owner of the investment decision of buying and selling, and is responsible for the implementation of this resolution through entering the appropriate order to the electronic trading system through the software provided by the broker for its clients. Before using this electronic system, the investor should be aware of some technical and regulatory matters relating to this service, as well as being fully aware that the use of the internet system involves a number of risks that may lead to undesirable loss. These risks may be associated with the internet network itself, software, or electronic trading system, in addition to the misuse of the service by the investor. So the investor shall acknowledge that he is aware and accept these risks which he might face while trading via the internet, and that the brokerage company will not be responsible for the failures of communication, its interruption or delay of trading via the internet, and it will not be liable for errors resulting in the account balances as a result or this failure. Some risks of trading via the internet: 1 - Loss of password of investor account Loss of user name and password, or failure to maintain the investor account or disclose it to others may result in many risks, these risks are represented in enabling a third party access to the account of the investor and the misuse of this account. 2 - Mechanism of action of the online electronic trading The client shall review carefully the functions of the online trading program before start using it and to review the guide of system usage before using it and ask the brokerage company for any matters not clear to him in the guide (manual). 3 - Internet failures The internet defaults may lead to partial or total service interruptions, which mean the loss of contact with the orders entered in the trading system. The client shall immediately contact a brokerage firm and reported the suffered problem, so that the company shall handle and control the entered orders and return to the traditional method of trading until the return of service to the client. 4 - Connectivity speed with internet Connection speed may affect the efficiency of receiving information or control over the internet. A delay in the receipt of trading information and messages may occur, and the messages of reporting received from the trading system concerning the entered orders, and may imply a delay of purchase orders and sales to the electronic trading system. 8

9 5 Increased sudden trading activity The increased sudden activity of trading or even increase the overcrowding at the service provided by the broker to its clients may results in increasing the momentum of the information that is communicated through the Internet, which may lead to potential delays in receiving information or updating the prices on the used software, In addition to the role of overcrowding and increase the trading activity in the interruption or failure of connection to the service. 6 Defaults of computer system used by the investor The disruptions that might be eposed to the investor computer may reduce the opportunity to complete the operations or the inability to implement finalization, or lack of accessibility to the internet to connect to the service, or even non-receipt of messages reporting from the electronic trading system on the orders entered, so the investor should conduct periodic maintenance required for his computer and update it to avoid any potential sudden defaults. 7 Errors in prices and information of trading securities, which are transmitted through the online trading. The above mentioned interruptions affecting the system and software, or hardware and communication lines used to access the information incorrectly to the investor, so the investor if noticing any errors in prices and trading information shall stop using the service immediately and to inform the mediator to avoid undesirable losses. 8 Third-party intervention In case of third party interference in the network, including interception of report messages, or sent them by hustlers and impersonators, such as access to websites and misuse them or a third party to enter programs and system to the Investor's PC, including antivirus and intrusion Etc., which can interfere with or damage communications and cause damage to the system of the used computer. So an Investor shall always use Firewalls and anti-virus programs, and shall update periodically. 9 Internal modifications of the Investor's computer system by its officials and employees (in case the investor is a juridical person). 10 Failing to deal with sensitive and confidential data By the persons who use the Investor's computer system or the data stored in them. 11 Failing to provide protection programs (Firewalls), Anti-virus software and password and other access control mechanisms on the customer's computer, which helps in reducing the risk of using the Internet in communications and trading. 12 Enter / modify / cancel the orders incorrectly The client may incorrectly enter / modify / cancel orders, such as entering a purchase order instead of a sell order, or the wrong modify of the prices which may bring unwanted loss. 13 Any other risks arising from the use of the Internet The Customer further acknowledges that he is aware that the techniques of security and protection, and the means used for the purposes of intrusion, access to websites, and interception and interference in Internet communications and any other hazards resulting from the use of Internet is growing steadily with time, it is necessary to continue update the techniques and procedures of security and protection, and improving Internet communications and mechanisms of trading operations through the Internet. Name :. Signature :.. Date :.... Broker s name :..Signature :. 9

10 Contingency plan for Ajiad for Securities in the case of a bug in the service of online trading Based on the desire of Ajiad for Securities to provide an online trading service, and in the interest from the company to provide the service with high quality and within a secure electronic environment, the company has been keen on providing the infrastructure and the high artistic readiness for providing a continuing outstanding service and without interruption or break. And that require cooperation and coordination between the company and clients on the one hand, and between the company and the company and the provider company of internet service on the other one. To ensure ecellence online trading service and its quality, Ajiad for Securities prepared contingency plan set forth below to face any trouble in the provision of the service. First, in case of failure of any of the following: A - Internet service: whether the interruption in communication is between the client and the Internet or the interruption of communication is between the company and the Internet, or a very slow Internet service, which inhibits the ability to enter commands, modify them and cancel them by the client and follow-up. B The (Web Server) system of the company: The client contacts the company by: A - Telephone (hotline) No and B Fa No C - etrade@ajiadsecurities.com In order to enter new commands into the trading system and / or modify or delete commands entered, where the company's employees follow-up client s orders entered and modify, delete them or insert new commands through the (OMS) system based on the instructions and authorizations issued by the client. The company communicates with the Internet service provider company in order to reconnect the service. Second: In case of the failure of (OMS) system which inhibits the ability of clients to follow their entered commands or to insert new commands through the Internet, and inhibits the company's ability to follow up clients commands entered or to insert new commands through the (OMS) system. The client contacts the company by: A - Telephone (hotline) No and B Fa No C - etrade@ajiadsecurities.com To insert new commands to the trading system, modify or delete commands entered, where the employees of Ajiad for Securities company follow-up client s command entered, modified, edit or delete them or insert new commands through screens of electronic trading system (GL Station) after verifying the cash balance for the client in case of purchase, and the balance of the securities for the client in case of sale. And the company contacts with the supplier of the system to handle the problem. Third: In case of the failure of the main (Leased Line) line between the company and Amman Stock Echange, a transfer is done directly to the alternative line (Back up Leased Line). 10

11 Fourth: In the case of that Ajiad for Securities Company s lack of receiving information broadcast (Market Data Feed) From Amman Stock Echange for any reason, the company will stop online trading service on its clients, as it will stop modifying or entering commands through (OMS) system in order to avoid entering commands with incorrect prices. And the client can contact the company via phone, fa or to modify or delete commands entered or insert new commands to the trading system, where the intermediate follows-up the client s commands entered and modifies or deletes them or inserts new commands through screens of electronic trading system (GL Station) after verifying the cash balance and the balance of securities for the client. Fifth: The Website: Name :. Signature :.. Date :

12 Awareness Bulletin issued by Ajiad for Securities for the investor who wishes to use an online trading service 1 - Services offered through the trading system: Purchase of securities. Sale of securities. Query Service for the client s portfolio and statements of his accounts. Inquire about stock prices and watch the depth of the market and design of shares watch specially for the client. 2 - Special Instructions for trading operations: The customer must verify the insert / modification / cancellation of purchase and sales orders. The customer must be precise when using the system. The customer must sure of signing out terminally when he finishes using the online trading service. 3 An online trading service does not mean a direct contact with the system of electronic trading in the stock market. The investor follows up the process of trading securities directly, and enters his purchase and sale command on his own, without the need for contacting the intermediate for authorizing him to do so, and the investor must understand that the commands he enters are passed first to the intermediate systems to verify the adequacy of online cash balance or the balance of securities and any other conditions, and are then forwarded electronically to the electronic trading system in the stock market. So the investor has to take his time before judging that the commands has reached to the electronic trading system and does not repeat entering the command to avoid carrying out undesirable duplicates commands of purchasing or selling. The investor must also understand and agree that he responsible solely for any repletion of the commands entered through the system of trading via the internet. 4 - The customer receipt and see the policy of protection and privacy that Ajiad for Securities applies and that is anneed with the convention. 5 - In case the client wishes to inquire about the service, or in case of having problems that the client would notify the company about them, Or to inquire about the mechanism of action that is adopted by the company, and in emergency situations the client has to visit the company's headquarters, or contact by the telephone number ( ), or ( ) or by visiting the company's website ( 6 Entering commands through the Internet does not mean immediate implementation. To enter a purchase or sales command through the program does not mean the implementation of it immediately, the command entered may delay to reach the trading system for many reasons that have been mentioned earlier, including the failure or disruption of the Internet or used systems and programs, or the delay caused by mechanism of verifying of the command by the systems of mediator before it is passed to the electronic trading system, or of overcrowding on the service provided by the mediator, or the intensification of the activity of trading in the stock market, or as a result of the change in supply and demand forces before the arrival of the command to the electronic trading system and therefore it is recorded on the command record. pending to be eecuted. and the investor must realize that what is provided by the mediator is a service for entering purchase and sale commands online only, and the company does not guarantee the validity of commands and the implementation of these commands, the investor must follow up the state of the command entered, wich he had not been informed by and not try to repeat entering the same command. 12

13 7 The delayed update for the investor s account balances on time of applying the command. After applying the entered command, the account balances may not be updated immediately and simultaneously with the implementation, due to the possibility of the delayed receipt for the message that is reporting the implementation of an entered command as a result of reasons and the faults mentioned previously, so failure of receiving a confirmation message does not necessarily mean not implementing the command. Therefore, the investor must wait a bit and follow-up received messages and not try to re-enter the command, and if the investor does not receive any massage, preferably he has to contact with the mediator to inquire about the state of the contact and to inform him about the entered command and the problem. 8 - The investor must comply with the minimum technical requirements specified by the mediator and should be available in the line of communication with the Internet, and computers used to run the service. 9 - In case of loss of the password, the client shall do the following: The client contacts with the mediator on the hotline number ( ), ( ), or visit the company's headquarters and asking him to change the password (which include stopping the password and replace it with new one) after the verification of the contact client by the mediator. Name :.. Signature : Date :. The Housing Bank Comple - Second floor P.O.Bo Amman Jordan Tel: Fa: