Wednesday, 20 February 2013

MCX-SX to Introduce Liquidity Enhancement Schemes

MCX Stock Exchange (MCX-SX) said it would introduce incentive schemes for brokers and intermediaries to enhance liquidity in illiquid securities in the equity and derivatives segments from next month.

“MCX-SX will introduce liquidity enhancement scheme (LES) in equity and equity derivatives segments with effect from March 6, 2013,” the stock exchange said in a statement.


Sell MCXSX/NSE JPYINR Feb between 58.02 - 58.04, SL - 58.16, 

Target - 57.83 (CMP: 58.02) 

This is the first national exchange in the country to offer incentives for liquidity enhancement in the equity cash market, it added.

Under the scheme, brokers and other market intermediaries are given incentives for a specified period of time to bring in liquidity and generate investor interest in those securities which have limited trading activity.

MCX-SX said the market maker performing up to 90 per cent of their obligation during the month in 25 securities would be entitled to receive an additional incentive of Rs 21 lakh per month. In case of 40 securities, the member would be entitled to receive an additional incentive of Rs 50 lakh per month.


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