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 Derivative Segment.
In view of this, Trading Members are hereby informed that the Exchange is launching the 15th programme in the series viz. LEIPS – XV on January 16, 2014. The programme focuses on Single Stock Futures contracts on the 35 underlying scrips.
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 Derivative Segment of the Exchange who have already signed up in LEIPS XII, LEIPS XIII and LEIPS-XIV programme as GMPs shall be treated as GMPs in LEIPS-XV programme as well. Trading members who wish to opt out of the LEIPS-XV programme as GMPs shall be required to intimate the Exchange of the same.
Registered Market Makers of LEIPS XII, LEIPS XIII and LEIPS-XIV programme shall have to register themselves as a Market Maker in LEIPS- XV programme & expressly indicate their interest to do Market Making in the underlying securities eligible under LEIPS-XV 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.
Under the programme, the MMs have a continuous quoting obligation with specified size and spread in Single Stock Futures contracts on aforesaid underlyings. The programme offers 4 types of incentives to market participants –
1. Trading volume based daily cash incentives to MMs and GMPs
2. Quote based incentives 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.
Details of LEIPS-XV 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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Sameer Vaze
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Sr. GM-Trading Operations
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Manager-Trading Operations
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