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 14th programme in the series viz. LEIPS – XIV on October 31, 2013.
The Programme focuses on Futures Contracts on S&P BSE SENSEX. 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 X LEIPS-XII and LEIPS-XIII programme as GMPs shall be treated as GMPs in LEIPS-XIV programme as well. Trading members who wish to opt out of the LEIPS-XIV programme as GMPs shall be required to intimate the Exchange of the same.
Registered Market Makers of LEIPS X, LEIPS- XII and LEIPS-XIII programme shall have to register themselves as a Market Maker in LEIPS- XIV programme & expressly indicate their interest to do Market Making in the underlying securities eligible under LEIPS-XIV 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-XIV envisages the MMs to have a continuous quoting obligation with specified size and spread in Futures contracts on S&P BSE SENSEX. 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-XIV 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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