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 Futures & Options Segment.
In view of this, Trading Members are hereby informed that the Exchange is launching the fourth programme in the series viz. LEIPS-IV on 2nd May, 2012. The programme focuses on futures contracts on SENSEX and BANKEX. The programme incentivises both MMs and GMPs by payment of cash for their participation as per prescribed terms and conditions.
Active trading members of Futures & Options segment of the Exchange who have already signed up in LEIPS-II programme as General Market Participant (GMP) shall be treated as GMPs in LEIPS-IV programme as well. Similarly, Market Makers (MMs) who have registered as MMs in LEIPS-II programme for SENSEX Futures and BANKEX Futures contracts shall automatically qualify to be a MM in LEIPS-IV programme.
LEIPS IV envisages the MMs to have a continuous quoting obligation with specified size and spread in Sensex Futures and Bankex Future contracts. The programme offers 4 types of incentives to market participants –
· Trading volume based cash incentives paid on daily basis to MMs and GMPs
· Open Interest (OI) based cash incentives paid on daily basis for average daily OI to MMs and GMPs
· Quoting obligations based cash incentives paid on daily basis to MMs
· Lower transaction fees for all trading members.
Details of LEIPS-IV programme are enclosed herewith as Annexure.
For any further clarifications, please contact your designated Relationship Managers.
For and on behalf of BSE Limited.
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Rajesh Saraf
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Sameer Vaze
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GM – Trading Operations
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DM – Trading Operations
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