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 Derivatives Segment.
In view of this, Trading Members are hereby informed that the Exchange is launching the 9th programme in the series viz. LEIPS – IX on February 01, 2013.
The Programme focuses on SENSEX Futures Contracts. The programme incentivises both MMs and GMPs by payment of cash for their participation as per prescribed terms & conditions.
Active trading members of Derivative Segment of the Exchange who have already signed up in LEIPS-VI, LEIPS-VII & LEIPS-VIII programme as GMPs shall be treated as GMPs in LEIPS-IX programme as well. Trading members who wish to opt out of the LEIPS-IX programme as GMPs shall be required to intimate the Exchange of the same.
Registered Market Makers of LEIPS-VI, LEIPS-VII & LEIPS-VIII programme shall have to register themselves as a Market Maker in LEIPS-IX programme & expressly indicate their interest to do Market Making in the underlying securities eligible under LEIPS-IX programme.
Other active trading members of Derivative Segment of the Exchange can register themselves as a Market Maker (MM) or a General Market Participant (GMP) for this programme as well.
LEIPS-IX envisages the MMs to have a continuous quoting obligation with specified size and spread in SENSEX Futures Contracts. 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.
Details of LEIPS-IX programme are enclosed herewith as Annexure.
For any further clarifications, please contact your designated Relationship Managers.
For and on behalf of BSE Limited.
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Devika Shah
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Sameer Vaze
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Sr. GM – Trading Operations
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DM – Trading Operations
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