SEBI pursuant to its Circular no.CIR/MRD/DP/14/2014 dated April 23, 2014 (BSE Notice no: 20140429-6 dated April 29, 2014) revised the guidelines for Liquidity Enhancement Scheme in the Equity Cash & Equity Derivatives Segment.
In view of this, Trading Members are hereby informed that the Exchange shall be launching the LEIPS on Monthly Single Stock Options on 20 Underlying Securities which are part of S&P BSE SENSEX with effect from February 27, 2015.
The programme incentivizes both Market Makers (MMs) and General Market Participants (GMPs) by payment of cash for their participation as per prescribed terms and conditions.
Active trading members of Equity Derivative segment of the Exchange can follow a simple process to register themselves for this programme as Market Makers (MMs) or as a General Market Participant (GMP).
Under the programme, the MMs have a continuous quoting obligation with specified size and spread in options contracts on Stock Options on 20 underlying stocks which are part of S&P BSE SENSEX. The programme offers 4 types of incentives to market participants –
1. Trading volume based daily cash incentives to MMs and GMPs
2. Quote based incentive for MMs
3. Open Interest (OI) based cash incentives paid on daily basis for average daily OI to MMs and GMPs
4. Lower transaction fees for all active trading members.
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.
LEIPS-Stock Options programme shall remain in force as per tenure mentioned in SEBI Circular no.CIR/MRD/DP/14/2014 dated April 23, 2014.
Details of the 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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Rajesh Saraf
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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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