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Dubai Financial Services Authority (DFSA): Contents

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Jul 14 2013 - Aug 20 2014Aug 21 2014 onwards

AMI 6.9.1

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The definitive version of DFSA handbook text is the PDF version as that is the text of the instrument as made and published by the DFSA.

To view past versions of this module in PDF format, please visit the Archive.

(1) An ExchangeG must not introduce a liquidity incentive scheme unless:
(a) participation in such a scheme is limited to:
(i) a MemberG of the ExchangeG ; or
(ii) any other PersonG where:
(A) the ExchangeG has undertaken due diligence to ensure that the PersonG is of sufficient good repute and has adequate competencies and organisational arrangements; and
(B) the PersonG has agreed in writing to comply with the Business RulesG of the ExchangeG so far as those rules are applicable to that Person'sG activities; and
(b) it has obtained the DFSA'sG prior written approval for the scheme.
(2) For the purposes of this section, a liquidity incentive scheme means an arrangement designed to provide liquidity in the market or in relation to a particular InvestmentG or class of InvestmentsG .
(3) An ExchangeG must, at least 10 business days prior to the introduction of a liquidity incentive scheme referred to in (1), lodge with the DFSAG a notification containing:
(a) the details of the relevant scheme;
(b) the benefits to the ExchangeG and its MembersG and other users resulting from the scheme;
(c) a certification by it that the requirements in (1)(a) have been fully met; and
(d) the date on which the scheme is intended to become operative.
(4) The DFSAG will, within 10 business days of receiving the notification referred to in (3), approve the proposed liquidity incentive scheme unless it has reasonable grounds to believe that the introduction of the scheme is reasonably likely to be detrimental to the existence of Proper MarketsG . Where the DFSAG does not approve the proposed liquidity incentive scheme, it will notify the ExchangeG of its objections to the introduction of the proposed liquidity incentive scheme, and its reasons for that decision.
(5) If the DFSAG decides to exercise its power under (4) not to approve a proposed liquidity incentive scheme, the ExchangeG may refer the matter to the FMTG for review.
(6) An ExchangeG must, as soon as practicable, announce the introduction of the liquidity incentive scheme, including the date on which it becomes operative and any other relevant information.
Derived from RM118/2013 [VER15/07-13]
[Amended] DFSA RM133/2014 (Made 21st August 2014). [VER16/06-14]