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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
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Conduct of Business Module (COB) [VER33/07-19]
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  Versions
(2 versions)
 
Jul 14 2013 - Apr 2 2016Apr 3 2016 onwards

COB 9.6.8



Whole Section PDF

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 ATS OperatorG must not introduce a liquidity incentive scheme unless:

(a) participation of such a scheme is limited to:
(i) a member as defined in Rule 9.3.1(1); or
(ii) any other PersonG where:
(A) it 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 its Operating RulesG so far as those rules are applicable to that Person'sG activities; and
(b) it has obtained the prior approval of the DFSAG .

(2) For the purposes of this section, a “liquidity incentive scheme” means an arrangement designed to provide liquidity to the market in relation to InvestmentsG traded on the facility.

(3) Where an ATS OperatorG proposes to introduce or amend a liquidity incentive scheme, it must lodge with the DFSAG , at least 10 days before the date by which it expects to obtain the DFSAG approval, a statement setting out:

(a) the details of the relevant scheme, including benefits to the ATSG and members arising from that scheme; and
(b) the date on which the scheme is intended to become operative.

(4) The DFSAG must within 10 days of receiving the notification referred to in (3), approve a proposed liquidity incentive scheme unless it has reasonable grounds to believe that the introduction of the scheme would be detrimental to the facility or markets in general. Where the DFSAG does not approve the proposed liquidity incentive scheme, it must notify the ATS OperatorG of its objections to the introduction of the proposed liquidity incentive scheme, and its reasons for that decision.

(5) An ATS OperatorG must, as soon practicable, announce the introduction of the liquidity incentive scheme, including the date on which it becomes operative and any other relevant information.

(6) If the DFSAG decides not to approve a liquidity incentive scheme, the ATS OperatorG may refer the decision to the FMT for review.

[Added] DFSA RM123/2013 (Made 13th June 2013) [VER22/07-13]
[Amended] DFSA RM175/2016 (Made 10th February 2016). [VER26/04-16]