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NOTICES
Notice No.   20140128-19   Notice Date   28 Jan 2014
Category   Trading   Segment   Derivatives
Subject   Introduction of Liquidity Enhancement Incentive Programme (LEIPS) – XVI for BSE Derivative segment.
Attachments   LEIPS-XVI Programme Brochure.pdf ;
Content

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 16th programme in the series viz. LEIPS – XVI on February 13, 2014.
The Programme focuses on Options Contracts on S&P BSE-100 Index 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-XIII, LEIPS XIV and LEIPS XV programme as GMPs shall be treated as GMPs in LEIPS-XVI programme as well. Trading members who wish to opt out of the LEIPS-XVI programme as GMPs shall be required to intimate the Exchange of the same.
Registered Market Makers of LEIPS XIII, LEIPS- XIV and LEIPS-XV programme shall have to register themselves as a Market Maker in LEIPS- XVI programme & expressly indicate their interest to do Market Making in the underlying securities eligible under LEIPS-XVI 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-XVI 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
 
Details of LEIPS-XVI programme are enclosed herewith as Annexure.
For any further clarifications, Trading member are requested to contact their designated Relationship Managers.
For and on behalf of BSE Limited.
 

Devika Shah
                         Sameer Vaze
Sr. GM-Trading Operations
                         Manager-Trading Operations