Manama, November 9 (BNA): Bahrain Exchange will support market participants such as market makers, liquidity providers and traders as part of its ongoing efforts to develop the capital markets of the Kingdom of Bahrain. Launched the “Trade Incentive System”. Other brokers use it to earn rebates for market making and liquidity provision.
The ‘Trade Incentive Scheme’ is scheduled to come into force on January 1, 2025, with implementation details to be announced one month in advance. The scheme is in line with the key objectives of the Financial Services Sector Development Strategy (2022-2026) and complements the Bahrain Stock Exchange’s recently launched listing incentive program.
The purpose of the Trading Incentive Scheme is to encourage market makers, liquidity providers and other brokers to increase the volume of trades cleared by Bahrain Clear in accordance with the business rules of the Bahrain Stock Exchange, thereby increasing market liquidity. It’s about stimulating improvement. Under this scheme, market makers are eligible for up to a 60% rebate on trading fees for listed securities for which they act as a market maker.
The scheme further complements the Listing Incentive Program, which aims to encourage private companies to list on both the Main Board and the Bahrain Investment Market, and supports the Financial Services Sector Development Strategy (2022-2026). Masu. Additionally, the scheme is in line with recently announced market making and liquidity provision guidelines aimed at attracting new market participants.
Shaikh Khalifa bin Ebrahim Al Khalifa, CEO of Bahrain Stock Exchange, said: The Listing Incentive Program and Trading Incentive Scheme launched by the Bahrain Stock Exchange will increase liquidity and attract further listings in line with the Financial Services Sector Development Strategy 2022-2026, significantly boosting Bahrain’s capital market. It reflects the Bahrain Stock Exchange’s continued commitment to strengthening its business and contributing to the Kingdom’s economy. growth. “
“The Trading Incentive Scheme, together with the Listing Incentive Program, supports both sell-side and buy-side activities in the capital markets and further complements the digitalization efforts that Bahrain Stock Exchange plans to launch in the next quarter. It will greatly benefit and improve the financial market landscape of Bahrain,” added Sheikh Khalifa.
as
