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 17th programme in the series viz. LEIPS – XVII on May 02, 2014.
The Programme focuses on Futures 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 XIV LEIPS XV and LEIPS XVI programme as GMPs shall be treated as GMPs in LEIPS-XVII programme as well. Trading members who wish to opt out of the LEIPS-XVII programme as GMPs shall be required to intimate the Exchange of the same.
Registered Market Makers of LEIPS XIV, LEIPS- XV and LEIPS-XVI programme shall have to register themselves as a Market Maker in LEIPS- XVII programme & expressly indicate their interest to do Market Making under LEIPS-XVII 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-XVII envisages the MMs to have a continuous quoting obligation with specified size and spread in Futures 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-XVII 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.
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Devika Shah
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Ketan Jantre
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Sr. GM-Trading Operations
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GM-Trading Operations
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