Pursuant to SEBI Circular CIR/DNPD/5/2011 dated June 2, 2011 (BSE Notice no—20110602-18, Dated June 02, 2011), which permitted stock exchanges to introduce Liquidity Enhancement Schemes (LES) for illiquid securities in their equity derivatives segment, BSE shall be launching a series of Liquidity Enhancement Incentive Programmes (LEIPS) with the goal of creating lasting, self-sustaining liquidity in BSE’s Derivatives Segment.
The first programme in the series—LEIPS–I (BETA) is intended to help members test their end-to-end systems for quoting, trading, and clearing capabilities. During the programme, members shall be incentivized to trade in derivatives contracts of SENSEX and its underlying 30 stocks. LEIPS-I (BETA) shall run from September 28th to October 25th 2011. Details are given in Annexure—I.
The second programme in the series—LEIPS–II— is intended to help in building a healthy derivatives order book for the SENSEX and its underlying 30 stocks by maximizing investor participation across the board; both market makers (‘MM’s hereafter) and general market participants (‘GMP’s hereafter) shall be incentivized to participate. The programme shall be launched on October 26th and run for a duration of 6 months. Details are given in Annexure—II.
To participate in LEIPS, trading members are advised to refer to the attached annexures and register for the programmes in the prescribed format.
Amit Shrivastava
Business Development
Date: September 7, 2011
For any queries please feel free to contact designated persons in Annexure III |