As part of Bahrain Bourse’s continuous efforts to develop the Capital Market in the Kingdom of Bahrain, Bahrain Bourse has launched the ‘Trading Incentives Scheme’, to enable market participants, including market makers, liquidity providers, and other brokers, to obtain rebates for market makers and liquidity providers. The ‘Trading Incentives Scheme’, which is expected to be effective starting 1st January 2025, while the details pertaining to the Trading Incentives Scheme implementation will be announced one month prior to commencement. The Scheme is a key objective of Financial Services Sector Development Strategy (2022-2026), and is aligned with the Listing Incentives Program recently launched by Bahrain Bourse.
The objective of the Trading Incentives Scheme is to incentivize 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. The Trading Incentives Scheme will allow market makers up to 60% rebate on trading commissions for listed securities in which they act as market makers.
The scheme aims to further complement the Listing Incentive Program which was recently launched by Bahrain Bourse to encourage listing of privately held companies on both Mainboard and Bahrain Investment Market and aims to be aligned with the key objective of Financial Services Sector Development Strategy (2022-2026). The scheme will also support the recently launched Market Making Guidelines and Liquidity Provision Guidelines, as it will attract new market participants to the market.
On this occasion, Sh. Khalifa bin Ebrahim Al-Khalifa, CEO of Bahrain Bourse, commented, “The Trading Incentives Scheme has been rolled out to further deepen market liquidity and encourage active participation of market participants in the market. The various incentives programs launched, Listing Incentives Program and Trading Incentives Scheme, by Bahrain Bourse will boost further liquidity and attract further listings and is aligned with the Financial Services Sector Development Strategy 2022-2026, and reflects Bahrain Bourse’s ongoing efforts to
significantly enhance the landscape of Bahrain’s capital markets, and subsequently contribute to the Kingdom of Bahrain’s economic growth.”
“The Trading Incentives Scheme along with the Listing Incentives Program will cover both sell-side and buy-side of capital markets and will further complement proposed digitalization plans aimed to be launched by Bahrain Bourse over the next quarter, significantly benefiting and elevating the landscape of Bahrain’s capital markets,” Shaikh Khalifa added
