Palestine Exchange
| Palestine Exchange | |
|---|---|
| 200px | |
| Type | Stock Exchange |
| Location | Nablus, Palestinian Authority |
| Founded | 1995 |
| Key people | Ahmad Aweidah CEO[1] |
| Currency | USD, JOD |
| Website | www |
The Palestine Exchange (PEX) (Arabic: بورصة فلسطين, bursat filasteen) is a stock exchange based in Nablus in the Palestinian territories. Established in 1995, it aims to provide an environment for trading that is characterized by equity, transparency and competence, serving and maintaining the interest of investors.
As of December 2012 there are 48 listed companies on PEX with a total market capitalization of about $3 billion in five main areas: financial services, insurance, investments, industry, and services.[2] Most of the listed companies are profitable and trade in Jordanian Dinar, while others trade in US Dollars.
In 2015 the CEO of the Palestine exchange was Mr. Ahmed Aweidah. They are characterised by being the only Arab exchange to have been regarded as a private entity since its founding. As of 2013, only stocks are traded on the exchange, however PEX is open to including other securities in the future.[2] In 2009, the PEX ranked thirty third amongst the worldwide security markets, and regionally comes in second in terms of investor protection.[citation needed] About half of PEX's investment comes from Palestine, with the other half coming from overseas.[3]
History
The Palestine Exchange or PEX, was incorporated as a private shareholding company in early 1995, with the Palestine Development & Investment Company (PADICO) as its major investor. The PEX was fully automated upon establishment - a first amongst the Arab Stock Exchanges. The PEX became a public shareholding company in February 2010 and was listed on the 4th of April 2011 responding to principles of transparency and good governance. The PEX operates under the supervision of the Palestinian Capital Market Authority.
After the Palestinian National Authority (PNA) approved a PADICO-sponsored design and work plan in July 1995, a project team was put together by the PEX and entrusted to establish a fully electronic exchange and depository. EFA Software Services, a Canadian company, provided both the trading and settlement & clearing systems. By August 1996 the Exchange was fully operational, and on November 7 of that year the PEX signed an operating agreement with the PNA, allowing for the licensing and qualification of brokerage firms to take place. On February 18, 1997, the PEX conducted its first trading session.
The PEX is very appealing in terms of market capitalization, it is financially sound, and well capitalized to maintain a steady business in a volatile world, as it passed with the minimum level of impact of the global financial crisis compared to other MENA Exchanges.
The Exchange launched an e-trading portal on April 24, 2007.[4]
Regulatory Framework
In 2005, with the development of the legal structure of the securities sector in Palestine, particularly the issuance of the Securities Law No. (12) of 2004 and the Capital Market Authority Law No. (13) of 2004, the Palestine Capital Market Authority (CMA) took over the responsibility of supervising the PEX and issuing securities by the public shareholding companies.
The PEX operates in accordance with the Securities Law No. (12) of 2004, and the bylaws that stemmed from it in a manner that does not contravene with the CMA directives.
The PEX works also in accordance with modern regulations. These regulations include: listing regulation, trading regulation, disclosure regulation, membership regulation, dispute resolution regulation and the regulation of professional conduct.
