Bahrain Bourse (BHB), a licensed exchange by the Central Bank of Bahrain, announced the launch of its Comprehensive Trading Incentive Scheme, which comes into effect on 2nd February 2025. 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.
The objective of the Trading Incentives Scheme is to provide a range of tailored benefits to support market participants and 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.
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 BD 75 million annually will qualify for a 10% rebate on commissions, increasing to 20% rebate on commissions for annual trading value above BD 140 million, and reaching to 30% rebate on commissions for annual trading value exceeding BD 220 million. The rebates are capped at BD 20,000 per year and will be calculated based on total commissions paid to Bahrain Bourse.
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.”
About Bahrain Bourse
Bahrain Bourse is a self-regulated multi-asset marketplace operator established since 1987. Bahrain Bourse aims to offer to its investors, issuers, and intermediaries a comprehensive suite of exchange-related facilities including offering listing, trading, settlement, and depositary services for various financial instruments. We aim to offer our stakeholders with the best investment and trading solutions, and pair it with creative insights and problem solving skills to provide our investors, issuers, and intermediaries with valuable resources to meet their every expectation. Our key growth pillars underpins our way of conducting business and how we interact with our stakeholders: Origination, Innovation, Collaboration, and Pioneering Spirit, and all of them working together is what enables us to offer you with an “Oasis of Investment Opportunities”.
For general inquiries, please contact:
Bahrain Financial Harbor
Harbor Gate, Level 4
P.O. Box 3203
Manama, Kingdom of Bahrain
Tel: (+973) 17261260
Fax: (+973) 17213061
info@bahrainbourse.com
www.bahrainbourse.com
For media inquiries, please contact:
Marketing & Business Development
Office: (+973) 17 108780
e-Mail: mbsd.info@bahrainbourse.com
