The National Stock Exchange has announced incentives for market participants who provide liquidity in the FTSE-100 futures and options. Incentives would be given only if the average daily traded value in FTSE-100 F&O is at least Rs 35 crore.

Broker-members have to pass on the incentives to clients who provide liquidity.

Incentives would be given at four levels — order, trade, open interest and brokers of top-five liquidity-providing clients for the month.

Open interest refers to the number of outstanding derivative contracts at the end of the every trading day.

Market makers would be rewarded for the first six months since inception of the index that is up to November 2.

Buyers of every crore of futures would receive Rs 400 as incentive while sellers of every crore of future would receive Rs 2,100. Buyers of every crore (of traded premium) of options will receive Rs 1,500 and sellers would receive Rs 4,500.

Those with an average daily open interest of 200 contracts in F&O in the first month and 400 contracts from the second month onwards would be rewarded.

Brokers whose clients figure in the top-five shall receive incentives if their average daily volume excluding proprietary book is Rs 3 crore in which at least three clients participate.

Incentives would be paid on a monthly basis and NSE can discontinue the scheme with a prior notice of 15 days. The scheme shall also be discontinued when the average trading volume on NSE reaches one per cent of market capitalisation of the underlying FTSE-100 index or six month, whichever is earlier.

> raghavendrarao.k@thehindu.co.in

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