The process of securities trading is, in fact, a process of sale and purchase of these securities. These papers, regarded as identical movables, can replace each other if they are of the same type, version, and currency. This is quite common in securities. Regardless of the consideration of the security from identical or valuable movables, the majority of comparative regulations governing the trading of securities on exchanges, including the Iraqi law, have required that the securities be designated and deposited with the market. It is also required from each of the converter and the transferee to hold an investor number in the market before making any transfer of ownership of such securities. This means that the majority of comparative law regulations had made it necessary for the full contract traded securities, the arrangement of the legal effect related to transferring the ownership of securities from the seller to the buyer, and the need to follow certain formalities. Therefore, we conclude that there is no lack of disruption of the impact of the carrier's ownership of securities from the seller to the buyer despite the implementation of orders for buying or selling stocks, but it is the application of general rules in the Iraqi civil law that requires a commitment for ownership transfer. This automatically transmits this right if this was the subject of commitment to something more specific in particular, without prejudice to the rules relating to registration. Therefore, the ownership of securities does not transfer without having met the prescribed formalities according to the law, which is represented by the completion of procedures for clearing, settlement and registration, so there is no way to say disable it.
Faidhallah, Hussein Tawfiq and Qader, Dr. Hiwa Ibrahim
"The Legal Classification for Transfer of Securities Ownership in the Stock Exchange,"
Journal Sharia and Law: Vol. 2012
, Article 4.
Available at: https://scholarworks.uaeu.ac.ae/sharia_and_law/vol2012/iss50/4