Liquidity Enhancement Incentive Programmes – LEIPS
Pursuant to SEBI Circular CIR/DNPD/5/2011 dated June 2, 2011 (BSE
Notice no-20110602-18, Dated June 02, 2011), permitting stock exchanges
to introduce Liquidity Enhancement Schemes (LES) for illiquid securities
in their equity derivatives segment, the Exchange has launched a
series of Liquidity Enhancement Incentive Programmes (LEIPS) with
the goal of creating lasting, self-sustaining liquidity in BSE's
Futures & Options Segment.
The Exchange has been regularly amending the terms and conditions
of its LEIPS programmes based on the overall progress of the programme,
market feedback and policy changes.
The Summary of LEIPS Programme introduced by the Exchange from time
to time is as follows.
LEIPS Scheme for Dealers and Proprietary trading desks/members
in Equity and Equity Derivative Segment:
As per the Exchange notice no. 20110907-5, dated September 07, 2013
regarding Introduction of Liquidity Enhancement Incentive Programme
(LEIPS) for BSE Derivatives Segment and Notice No. 20130211-14 regarding
Liquidity Enhancement Schemes for Illiquid Securities in Equity Cash
Market, Exchange has introduce LEIPS Scheme for Dealers and Proprietary
trading desks/members in Equity and Equity Derivative Segment with
effect from April 01, 2013 till June 30,2013.
For more details on the ongoing programme, please refer to
LEIPS Scheme for Dealers and Proprietary trading desks/members (ongoing)
With effect from May 07, 2013, the Exchange has made certain amendments
in the terms and conditions of LEIPS scheme for dealers and Proprietary
trading desks/members in Equity and Equity Derivative segment so as
to enhance the effectiveness of the scheme.
For more details on the proposed programme, please refer to Exchange
notice No. 20130422-13 dated April 22, 2013.
LEIPS-XI Programme:
The Eleventh programme in the series LEIPS-XI has been launched on
April 26, 2013.
The programme focuses on
Options Contracts on S&P BSE-100
Index and incentivises both MMs and GMPs by payment of cash
for their participation as per prescribed terms & conditions.
LEIPS-XI envisages the MMs to have a continuous quoting obligation
with specified size and spread in Options Contracts on S&P BSE-100
Index . The programme offers 4 types of incentives to market participants
–
- Trading volume based daily cash incentives to MMs & GMPs.
- Quote based incentives for MMs.
- Open Interest (OI) based cash incentives paid on daily basis
for average daily OI to MMs and GMPs
- Lower transaction fees for all active trading members.
For more details on the ongoing LEIPS-XI programme, please refer
to LEIPS-XI
Programme Brochure(ongoing)
LEIPS-X Programme:
The Tenth programme in the series LEIPS-X has been launched on April
26, 2013
The Programme focuses on Futures Contracts on S&P BSE-100
Index and incentivises both MMs and GMPs by payment of
cash for their participation as per prescribed terms & conditions.
LEIPS-X envisages the MMs to have a continuous quoting obligation
with specified size and spread. The programme offers 3 types of
incentives to market participants –
- Trading volume based daily cash incentives paid on pro rata
basis to MMs & GMPs.
- Open Interest (OI) based cash incentives paid on daily basis
for average daily OI to MMs and GMPs
- Lower transaction fees for all active trading members
For more details on the ongoing LEIPS-X programme, please refer to
LEIPS-X
Programme Brochure(ongoing)
LEIPS-IX Programme:
The Nineth programme in the series LEIPS-IX has been launched on 1st
February, 2013..
The Programme focuses on S&P BSE SENSEX Futures Contract and incentivises
both MMs and GMPs by payment of cash for their participation as per
prescribed terms & conditions. LEIPS-IX envisages the MMs to have
a continuous quoting obligation with specified size and spread. The
programme offers 3 types of incentives to market participants –
- Trading volume based daily cash incentives paid on pro rata basis to MMs & GMPs.
- Open Interest (OI) based cash incentives paid on daily basis for average daily OI to MMs and GMPs
- Lower transaction fees for all active trading members
With effect from April 26, 2013, the Exchange has made certain amendments
in terms & conditions of LEIPS-IX programme so as to enhance the effectiveness
of the scheme. Key amendments include –
- Revision in Trading Volume Cap.
- Revision in Open Interest Cap.
For more details on the ongoing LEIPS-IX programme, please refer to
LEIPS-IX
Programme Brochure (ongoing)
LEIPS-VIII Programme:
The Eighth programme in the series LEIPS-VIII has been launched on
16th January, 2013.
The Programme focuses on single Stock Futures Contracts on 30 underlying scrips forming part of S&P BSE SENSEX and incentivises both MMs and GMPs by payment of cash for their participation as per prescribed terms & conditions.
LEIPS-VIII envisages the MMs to have a continuous quoting obligation
with specified size and spread. The programme offers 4 types of incentives
to market participants –
- Trading volume based daily cash incentives paid on pro rata basis to MMs & GMPs.
- Quote based incentives for MMs
- Open Interest (OI) based cash incentives paid on daily basis for average daily OI to MMs and GMPs
- Lower transaction fees for all active trading members
With effect from April 01, 2013, the Exchange has made certain amendments
in terms & conditions of LEIPS-VIII programme so as to enhance
the effectiveness of the scheme. Key amendments include –
- Revision in Trading volume based cash incentive
- Introduction of additional trading volume based cash incentive
on passive trades for MMs qualifying for Rs.2 lakhs quote based
incentive.
- Revision in trading volume cap
- Revision in quote based incentive pool
- Revision in quote obligations
For more details on the ongoing LEIPS-VIII programme, please refer to
LEIPS-VIII Programme Brochure (ongoing)
LEIPS-VII Programme:
The seventh programme in the series LEIPS-VII was launched on October
29, 2012
The programme focused on Options Contracts on S&P BSE SENSEX
Index. The programme successfully concluded on April 29, 2013.
LEIPS-VI Programme:
The sixth programme in the series LEIPS-VI was launched on August
1, 2012. The programme focused on Futures & Options Contracts
on S&P BSE-100 Index. The programme successfully concluded on January
31, 2013.
LEIPS-V Programme:
The fifth programme in the series LEIPS-V was launched on August 1, 2012 with a view to infuse greater impetus and focused participation in developing the Single Stock Futures contract on 8 underlying securities viz. State Bank of India, Reliance Industries Limited, ICICI Bank Limited, TATA Steel Limited, TATA Motors Limited, Infosys Technologies Limited, Larsen & Toubro Limited & Axis Bank Limited. The programme successfully concluded on January 07, 2013.
LEIPS-IV Programme:
The fourth programme in the series LEIPS-IV was launched on 02 May,
2012. The programme focused on Futures on S&P BSE SENSEX till 01 November,
2012 and Futures on S&P BSE BANKEX till 21 June, 2012. The programme successfully
concluded on 01 November, 2012.
LEIPS-III Programme:
The third programme in the series LEIPS-III was launched on 1st February, 2012. The programme focused on Options on S&P BSE SENSEX. The programme successfully concluded on 31st July, 2012.
LEIPS-II Programme:
The second programme in the series LEIPS-II has been launched on 26th
October, 2011. The programme focuses on Futures on S&P BSE SENSEX, its underlying
30 stocks and S&P BSE BANKEX. LEIPS-II successfully concluded on 25th April,
2012.
LEIPS-I Programme:
The first programme in the series LEIPS-I (BETA) was launched on 28th
September 2011 with a view to get the members ready for the actual
programme. LEIPS-I (BETA) successfully concluded on 25th October 2011.
The Exchange monitors performance of the programme including presence
of MMs and their compliance with the quote obligations through a
mix of online and offline monitoring tools. The Exchange also publishes
information on the programme from time to time as applicable vide
SEBI Circular CIR/DNPD/5/2011 dated June 2, 2011
In accordance with the aforesaid SEBI circular the Exchange shall
amend / discontinue the programme at any time with an advance notice
of 15 days. Also, the programme shall be discontinued as soon as
the average trading volume on the Exchange, during the last 60 trading
days, reaches 1% of market capitalization of the underlying, or
six months from introduction of the scheme, whichever is earlier.
LEIPS Notices
| 7 May 2013 |
Terms & Conditions of LEIPS-VIII, LEIPS-IX, LEIPS-X,LEIPS-XI and LEIPS Scheme for Dealer & Prop desk/members applicable for special Live Trading Session on Saturday May 11, 2013 New |
| 22 Apr 2013 |
Amendments in LEIPS Scheme for Dealers and Proprietary trading desks/members in Equity and Equity Derivative Segment New |
| 11 Apr 2013 |
Amendments in LEIPS IX programme New |
| 11 Apr 2013 |
Introduction of Liquidity Enhancement Incentive Programme (LEIPS)–X for BSE Derivative segment New |
| 11 Apr 2013 |
Introduction of Liquidity Enhancement Incentive Programme (LEIPS)–XI for BSE Derivative segment New |
| 22 Mar 2013 |
Clarification regarding LEIPS Scheme for Dealers and Proprietary trading desks/members in Equity and Equity Derivative Segment. |
| 15 Mar 2013 |
LEIPS Scheme for Dealers and Proprietary trading desks/members in Equity and Equity Derivative Segment |
| 15 Mar 2013 |
Amendments in LEIPS IX programme |
| 15 Mar 2013 |
Amendments in LEIPS VIII programme |
| 15 Mar 2013 |
Amendments in LEIPS VII programme |
| 08 Mar 2013 |
Amendments
in LEIPS VIII programme |
| 18 Feb 2013 |
Amendments
in LEIPS VIII programme |
| 11 Feb 2013 |
Non Payment of incentives for the transactions under the
LEIPS scheme where counter party is self i.e same Unique
Client Code (UCC). |
| 14 Jan 2013 |
Introduction of Liquidity Enhancement Incentive Programme
(LEIPS) – IX for BSE Derivative segment. |
| 14 Jan 2013 |
Revision in Incentive program to increase retail participation
in BSE Derivatives Segment. |
| 11 Jan 2013 |
Clarification regarding Quote Based Incentive for Roll-Over
Options Contracts in LEIPS VI Programme. |
| 10 Jan 2013 |
Discontinuation of open interest incentive as per LEIPS
Scheme on current month contracts on their expiry day. |
| 04 Jan 2013 |
Incentive
program to increase retail participation in BSE Derivatives
Segment. |
| 01 Jan 2013 |
Introduction
of Liquidity Enhancement Incentive Programme (LEIPS) –
VIII for BSE Derivative segment. |
| Dec 24,2012 |
Amendments
in LEIPS VI programme. |
| Dec 24,2012 |
Amendments
in LEIPS VII programme. |
| Dec 24,2012 |
Discontinuation of LEIPS V programme . |
| Nov 09,2012 |
Terms & Conditions of LEIPS V, VI and VII Programme applicable for Muhurat Trading Session for Samavat Year 2069 for Derivatives Segment on Tuesday, November 13, 2012. |
| Nov 06,2012 |
Revision in incentive program to increase retail participation in BSE Derivatives Segment |
| Nov 06,2012 |
Discontinuation of scheme on Retail Investor Participation in BSE derivative Segment |
| Oct 10,2012 |
Introduction of Liquidity Enhancement Incentive Programme (LEIPS) – VII for BSE Derivative segment.
|
| Sept 27,2012 |
Change in LEIPS Trade file structure w.e.f. October 3, 2012.
|
| Sept 18, 2012 |
Amendments in LEIPS IV programme
|
| Sept 18, 2012 |
Amendments in LEIPS VI programme
|
| Sept 7, 2012 |
Incentive program for increasing retail participation in BSE Derivatives Segment – Revision for the month of September, 2012
|
| Aug 29, 2012 |
Incentive program for increasing retail participation in BSE Derivatives Segment
|
| Aug 29, 2012 |
Terms & Conditions of LEIPS IV, V and VI Programme applicable for special Live Trading Session on, Saturday September 8, 2012
|
| Aug 23, 2012 |
Amendments in LEIPS-VI programme
|
| Aug 1, 2012 |
CFS Facility and LEIPS-V Programme
|
| Jul 18, 2012 |
Amendments in LEIPS V programme.
|
| Jul 18, 2012 |
LEIPS III programme to be concluded on July 31, 2012.
|
| Jul 18, 2012 |
Amendments in LEIPS IV programme.
|
| Jul 18, 2012 |
Introduction of Liquidity Enhancement Incentive Programme (LEIPS) – VI for BSE F&O segment.
|
| Jul 13, 2012 |
Introduction of Liquidity Enhancement Incentive Programme (LEIPS) – V for BSE F&O segment.
|
| Jul 13, 2012 |
Amendments in LEIPS IV programme
|
| Jun 14, 2012 |
Amendments in LEIPS IV programme
|
| Jun 08, 2012 |
Revision in LEIPS-IV Programme for BSE F&O segment
|
| Apr 18, 2012 |
Terms & Conditions of LEIPS III Programme applicable for special Live Trading Session on, Saturday April 28, 2012
|
| Apr 17, 2012 |
Revision in Terms & Conditions of LEIPS-III Programme for BSE F&O Segment effective May 02,2012
|
| Apr 16, 2012 |
Introduction of Liquidity Enhancement Incentive Programme (LEIPS) – IV for BSE F&O segment.
|
| Feb 27, 2012 |
Terms & Conditions of LEIPS-II and LEIPS III Programme applicable for special Live Trading Session on , Saturday March 03, 2012 |
| Feb 17, 2012 |
Revision
in LEIPS III Programme for BSE F&O Segment |
| Feb 01, 2012 |
Change
in LEIPS Trade file structure post February 01,2012 |
| Jan 27, 2012 |
Revisions
in Terms & Conditions of LEIPS-III Programme effective February
01, 2012
|
| Jan 27, 2012 |
Revisions
in Terms & Conditions of LEIPS-II Programme effective February
01, 2012
|
| Jan 13, 2012 |
Introduction
of Liquidity Enhancement Incentive Programme (LEIPS) – III for
BSE F&O segment. |
| Jan 13, 2012 |
Revisions
in Terms & Conditions of LEIPS-II Programme - Effective 1st
February, 2012. |
| Jan 13, 2012 |
Revisions
in Terms & Conditions of LEIPS-II Programme on account of Change
in Expiry Cycle of Index & Stock-based Futures & Options Contracts
in BSE F&O Segment.
|
| Jan 04, 2012 |
LEIPS-II
Programme for Special LIVE Trading Session on Saturday January
07, 2012
|
| Dec 21, 2011 |
Discontinuation
of Incentive Cap Alert Messages on BOLT TWS and through IML.
|
| Dec 14, 2011 |
Revisions
in Terms & Conditions of LEIPS-II Programme
|
| Nov 30, 2011 |
Consolidated
Master Circular on LEIPS-II Programme
|
| Nov 21, 2011 |
Retail
Investor Participation in BSE Futures and Options Segment |
| Nov 15, 2011 |
LEIPS
II - Introduction of Period Wise Volume Incentive Cap in Futures
and Options |
| Oct 12, 2011 |
Submission
of Service Tax Invoice for Liquidity Enhancement Incentive Programme
LEIPS – I (Beta) & LEIPS – (II) |
| Oct 11, 2011 |
Revisions
to Liquidity Enhancement Incentive Programmes - LEIPS |
| Sep 28, 2011 |
Introduction
of LEIPS Market Making Monitoring System |
| Sep 28, 2011 |
Incentive
Pay-out Process for Liquidity Enhancement Incentive Programme
LEIPS-I (Beta) & LEIPS-(II) |
| Sep 07, 2011 |
Liquidity
Enhancement Incentive Programmes – LEIPS |
|