Bahrain - Bahrain Bourse (BHB), a licensed exchange by the Central Bank of Bahrain, has launched its Comprehensive Trading Incentive Scheme, which comes into effect on February 2.

This scheme aims to enhance market participation, drive liquidity, and foster active engagement among brokers, market makers, and liquidity providers through innovative incentive mechanisms. The scheme is a key objective of the Financial Services Sector Development Strategy (2022-2026), and is aligned with the Listing Incentives Program recently launched by Bahrain Bourse during 2024, BHB said.

The Trading Incentives Scheme will provide a range of tailored benefits to support market participants and incentivise market makers, liquidity providers, and other brokers to increase their volume of trades executed pursuant to the business rules of Bahrain Bourse and cleared by Bahrain Clear, which will stimulate further liquidity in the market.

Newly on-boarded members providing online connectivity will benefit from 20% discount on Membership Registration Fees and 100% discount on Membership Annual Subscription Fees for the first 2 years for one connection. In addition, for existing members trading via online connectivity, the scheme offers tiered rebates based on their annual trading value.

Members trading over BD75 million annually will qualify for a 10% rebate on commissions, increasing to 20% rebate on commissions for annual trading value above BD140 million, and reaching to 30% rebate on commissions for annual trading value exceeding BD220 million. The rebates are capped at BD20,000 per year and will be calculated based on total commissions paid to Bahrain Bourse, it said.

Additionally, market makers and liquidity providers will benefit from a unique rebate structure linked to their order presence time in the market. Those maintaining order presence between 60% and 80% of the time for each security will receive a 50% rebate on commissions, while market makers and liquidity providers with orders presence time of 80% and above will qualify for a 100% rebate on commissions. Rebates for market makers and liquidity providers will also be calculated annually, based on total commissions paid to Bahrain Bourse. 

Commenting on the launch, Abdulla Mohamed Janahi, Senior Director of Trading Operations at Bahrain Bourse, stated: “The Comprehensive Trading Incentive Scheme is a significant step in our ongoing efforts to enhance market efficiency and encourage active participation across all market segments. By introducing these targeted incentives, we aim to create a dynamic and inclusive capital market environment, in line with Bahrain's Financial Services Sector Development Strategy (2022-2026). By incentivizing greater market engagement, Bahrain Bourse aims to deepen market liquidity, encourage active trading, and bolster the overall capital market ecosystem in the Kingdom of Bahrain.” 

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