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 2012
The 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.