Bahrain Bourse has introduced the Trading Incentives Scheme, as part of its continuous efforts to advance the capital market in Bahrain.
This initiative allows market participants, including market makers, liquidity providers, and brokers, to obtain rebates for market-making and liquidity provision.
The Trading Incentives Scheme is expected to take effect on 1 January 2025, with implementation details to be announced one month prior. This scheme aligns with a key objective of the Financial Services Sector Development Strategy (2022-2026) and complements the recently launched Listing Incentives Program by Bahrain Bourse.
Shaikh Khalifa bin Ebrahim Al-Khalifa CEO – Bahrain Bourse
“The Trading Incentives Scheme has been rolled out to deepen market liquidity and encourage active participation by market participants. The Listing Incentives Program and Trading Incentives Scheme launched by Bahrain Bourse will boost liquidity and attract further listings, aligning with the Financial Services Sector Development Strategy 2022-2026, and reflect Bahrain Bourse’s ongoing efforts to significantly enhance Bahrain’s capital markets and contribute to the Kingdom’s economic growth. The Trading Incentives Scheme, together with the Listing Incentives Program, will support both sell-side and buy-side activities in the capital markets and further complement planned digitalization initiatives to be launched by Bahrain Bourse over the next quarter, significantly benefiting and elevating the landscape of Bahrain’s capital markets.”
The objective of the Trading Incentives Scheme is to encourage market makers, liquidity providers, and other brokers to increase their trading volume in line with Bahrain Bourse’s business rules and cleared by Bahrain Clear, thereby stimulating greater market liquidity.
Under the scheme, market makers will be eligible for up to a 60 percent rebate on trading commissions for listed securities in which they serve as market makers.
The scheme further complements the Listing Incentives Program, aimed at encouraging privately held companies to list on both the Mainboard and Bahrain Investment Market, and supports the Financial Services Sector Development Strategy (2022-2026).
Additionally, the scheme aligns with the recently launched Market Making and Liquidity Provision Guidelines, aiming to attract new market participants.
